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By Godfrey Kiyingi/KMA Updates
The Public Accounts Committee central has summoned the board of the Micro Finance Support Center (MFSC), headed by Dr. Emmanuel Ariba, over failure to establish a governing policy.
This was after the Auditor General’s report for the financial year 2022/23 queried theMicro Finance support center for lacking governance and risk control systems, leading to potential losses from funds disbursed to beneficiaries.
The report noted that the center failed to utilize fully the released funds, with only 12 billion shillings used out of 70 billion, due to the absence of a policy on Expected Credit Loss (ECL).
The Ministry of Finance has been given six months to establish a governing policy for MFSC,which will address the governance and risk control issues.