The Parliamentary Service Commission (PSC) has raised a red flag indicating that more than 100 MPs risk losing their modest cars over outstanding loans, Business Daily reports.
The MPs should have fully serviced the loans including those with mortgages by August 7 when their tenure as MPs ends.
Going by provision of the law for lawmakers, they are entitled to Sh20 million mortgage and a Sh7 million car loan.
This is required to be paid in full before the end of parliamentary terms.
In a report to the Auditor General Edward Ouko by Car Loan Scheme Fund, PSC has asked the MP’s to service the outstanding loans using money from other sources and not rely on their payslips only.
“This will ensure early repayment and release of original logbooks to facilitate their discharge and transfer to the owners,” reads the report.
The fund indicates it has outstanding loans totaling to sh213.1 million for Parliamentary staff and MPs.
Those under pressure include 89 MPs who got loans in June 2016 and are under intense pressure to service them before August 7 as well as finance their campaigns.
In a report tabled last week in Parliament by Justin Bundi, the former Clerk of the National Assembly- the officer in charge of administering the fund, he states that: “During the reported period (2015/16), the fund was able to fully process loans to 89 honourable members (approximately 22 per cent) for the 11th Parliament.”
“During the remaining parliamentary term, we expect to enhance recoveries for loan amounts outstanding for members to ensure full repayment before the expiry of the 11th Parliament. Members have been encouraged to make additional payments from other sources apart from monthly payslip recovery.” He said.