Why Sh12.6 billion under Hustler Fund may have been lost

Parliament has expressed fears that Sh12.6 billion issued out to Kenyans under the Hustler Fund programme may have been lost.

To get to the bottom of the matter, MPs have now summoned the Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya and Principal Secretary Susan Mangeni to give further details aboutr the operations of the fund.

This was after Hustler Fund Chief Executive Officer Henry Tanui told MPs that out of a total Sh14 billion allocated to the Fund by the National Treasury, only Sh1.4 billion was revolving. He was appearing before the National Assembly’s Special Funds committee, where he was expected to answer a total of 21 audit queries with regard to the Fund.

Key among them was the issue of the exact amount of money that had been loaned out and how much had been paid back since the inception of the fund and whether any money had been lost.

The committee session, however, took a dramatic turn after the CEO failed to satisfactorily answer the query, only telling the MPs that no money had been lost. He also failed to table documents containing details of the Funds’ beneficiaries as earlier directed by the committee.

“Appearing here with no query answered, I think is a mockery to the committee. This is an oversight committee. When you say no money was lost, I think you do not live in this country,” stated Committee chairperson and Migori Woman representative Fatuma Mohammed.

North Imenti MP Rahim Dawood called for a special audit of the Hustler Fund, observing that the committee’s continuous requests to have documents detailing the beneficiaries of the billions submitted before it had been ignored.

“The press even reports that of the people who took the loans of Hustler Fund, many are not known, and cannot be followed up. That's why I say this money has been misappropriated. It has been lost. And if you cannot recover it, so what is the point?  I would suggest, besides what we have done here, the Auditor General's report, we should order a special audit of the Fund,” he said.

The lawmaker added that the frequent changes to the Board of the Fund and the position of the CEO were meant to mask all the illegalities going on.

“If you only have Sh1.4 billion rotating, do you have the other Sh12 billion in your accounts? Because it seems Hustler Fund, to hide things, removes people from the office. After three or six months you will be gone, somebody else will come. And I think that is what is happening,” added Dawood.

Mwingi West MP Charles Nguna admitted to knowing individuals who took the Hustler Fund loans with no intent of ever repaying the amount and was worried that the government was not doing enough to recoup the money- which could ultimately get lost.

“Let's just call a spade a spade. If Treasury has allocated you Sh14 billion so far and only Sh1.4 billion is revolving, then mathematically we can say that Sh12 billion is lost…I personally know of people who registered new lines to access the loans but they are now throwing and blocking the numbers and don’t plan on repaying them. So I just want to confirm these fears, we have lost money for taxpayers.,” reiterated Nguna.

But in his defense, Tanui held that no money had been lost, and despite his being new in office, he needed time to submit the requested documents.

“Members, money borrowed is not money stolen. Some of these funds are with your constituents and what I have done is put in place measures to recoup the money,” he submitted.

The CEO also explained that the registration of individuals to access the loans was pegged on their Identity card numbers hence all the beneficiaries are known- with their data easily accessible through Safaricom telecommunications company.

“I would say, Madam Chair, if you allow, I will provide the documents required. However, if you give us time, we will come with the service providers, because 26 million accounts are required. This is a huge document. So we can come with them, they demonstrate to you, and all that we require will be seen. Thank you,” pleaded Tanui.

Committee Chairperson Mohammed subsequently ruled that the CEO submit the list of the borrowers with their contacts and identification within 7 days.

“We want, all the documents that show that that person has borrowed and the amount borrowed. Whether it's 10 lorries, we want it so that we can justify to Kenyans that money has been borrowed, has not been returned, or money has been lost. Right now we are working with speculations, which is not good for the committee and not good for the Hustler Fund,” she declared.