MPs have warned that it will recommend punishment to City Hall officials who provided false information on the Sh 5billion Equity Bank loan.

For the second day, the Local Authorities Committee said past and present City Hall officials are withholding the truth on how the loan was advanced and how the money was spent.

"We will not let any official who may have withheld information from this committee off the hook. We are going to make recommendations based on the evidence we have received," said Limuru MP Peter Mwathi during a hearing at Continental House yesterday.

The committee will be compiling its final report from today. The MPs have accused officials at City Hall of filling to fully cooperate with Parliament noting that it could be a cover-up.