Massive irregularities including issuance of loans given to recipients who are not fit for credits and who in some instances used duplicate ID’s to get several loans has been discovered in Hustler Fund, a government mobi-loan facility.
An audit done into the Hustler fund had further damning revelations , for example 424 loans were processed without a transaction code while 867 loan IDs were used for 1,978 loans, totaling Sh477,000.
Sh464 million in loans was issued to 808,047 before they even registered requesting to be issued with the loan whereas Sh200m loans was disbursed above set limits
So massive were the irregularities that Sh81m loans which had been issued closed before repayment as it also emerged that the Hustler loan system is not properly configured .
The audit also revealed that Sh161m was further issued to borrowers with outstanding loans and Hustler system couldn’t confirm loan balance neither their authenticity , while at the same time customer savings’ interest earnings was not disclosed.
Following the revelations, it remains to be seen whether Hustler Fund will be able to recover Sh8 billion loans in question issued through banks .
