Auditor General Reveals How Youths and Women Groups In Trans Nzoia Defaulted On Loans

A new report by the Auditor General covering the year ending 30th June 2021 reveals how the Trans Nzoia County Youth and Women Development Fund has an unpaid loan amounting to Ksh. 89,850,246 which has remained outstanding from 2019/2020. 

The report reveals that it is apparent the recoverability of the loans issued out is not feasible.  A review of application forms used in obtaining the loans indicates that several groups provided assets such as television sets, fridges, sheep and goats as security for recovery in the event of default.  However, the Fund Management did not provide evidence indicating where the assets were being held and how the Fund assured itself of the existence and values of the assets.

In the circumstances, the Fund is not able to meet the objective for which it was established. There was no evidence that Trans Nzoia County Youth and Women Development Fund Management Committee performed a formal risk assessment. The Fund management failed to undertake an Independent Assessment of Systems and Internal Controls. Further, there was no evidence that risky areas had been identified in terms of loan awarded revenues, expenditure, frauds and errors. In the circumstances, the existence and adequacy of the internal controls put in place could not, therefore, be evaluated.

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