 |
| KUSCCO CEO George Ototo |
KUSCCO CEO George Ototo allegedly lied about funds being invested in Treasury bonds, unsupported by audited financial statements.
The ongoing audit by SASRA is a crucial step towards uncovering the truth behind the allegations of financial mismanagement at Kuscco.
Authorities involved in fraud within the cooperative movement have received a strong warning from the authorities.
According to Simon Chelagui, Cabinet Secretary (CS) for Cooperatives, the government would take tough action against anyone who commit fraud in the industry.
“We will safeguard the industry and members’ interests from unscrupulous individuals, supervisors, or management committees,” he declared.
According to the CS, the State would give the asset recovery agency the authority to pursue anyone attempting to cheat Kenyans by utilising the Sacco spirit that Kenya has developed over time.
The depressing situation of cooperative societies was revealed by an examination carried up in 2019 by the Ministry of Trade, which oversaw the co-ops sector.
Interestingly, more failing institutions than successful ones were noted in the counties of Machakos and Mombasa; also, of the 1,150 Saccos registered in Mombasa, Kwale, Tana River, Kilifi, and Taita Taveta, around half had closed.
Between 2019 and 2020, the Sacco Societies Regulatory Authority (Sasra) terminated a number of organisations for violating rules and improperly handling member contributions.