Reason Behind Chiloba's Suspension From CA [EXCLUSIVE]

Communication Authority of Kenya (CA) Director General Ezra Chiloba was suspended on Monday, September 18 due to gross misconduct, Viral Tea can now exclusively reveal.

Details from the internal board meeting depicted in a document seen by Viral Tea revealed that the board had recommended disciplinary action on the former Chief Executive Officer (CEO) of the Independent Electoral and Boundaries Commission (IEBC) after an audit indicated that he fundamentally breached his obligations arising under the contract of service.

Chiloba was accused of neglecting duty through the lack of prequalified valuers and quantity surveyors.

Furthermore, he was accused of failing to provide the required leadership in the overall management and administration of a scheme thus resulting in the authority's exposure to financial loss and abuse of the scheme.

The CA board also flagged Chiloba for failing to undertake due diligence on transactions between the seller and the buyer.

"Failure to insure property under the Scheme for staff who exited service. Failure to undertake timely Mortgage Insurance Protection Advance for the property.

"As the Accounting Officer, there was gross misconduct of the process to acquire a mortgage for himself as is demonstrated by approval by a junior officer, self-approval of the loan," read the document in part.

CA listed a disbursement of the loan of Ksh25,000,000 to Kitale Hilmost Limited, but a Company Search with the Business Registration Bureau revealed that the seller entity is owned entirely, as the sole shareholder and the sole director, by Chiloba, the Director General who is also the buyer in this case.

"This is reasonably construed to be demonstrative of an intent to defraud the Authority," added the statement.

The board in the meeting cited a letter dated December 3, 2022, with instructions to pay the Ksh25 million to Chiloba's entity, directions which were adhered to on August 11, 2023.

CA found that there was an overvaluation of the property by 64.47% which is contrary to the entitlement of 1 acre resulting in a mortgage of Ksh25 million instead of Ksh16,720,000

"Clearance of exiting staff without review of mortgages being held causing financial exposure to CA of Ksh28,874,815.62.

"Understating loan balances for former employees without factoring the interest component thereby causing a risk of loss of funds totalling Ksh1,060,520.66," added the CA board.

Chiloba by the time of publishing this article was yet to respond to the suspension against him. He joined CA in September 2021 after a competitive recruitment process that saw him beat over 100 applicants for the top job.