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Fraud

Exposed: Corrupt Board Is Collapsing Undugu Society Of Kenya

Alex Masibo, Executive Director, Undugu Society of Kenya.

Hi Nyakundi,

There is a Non-governmental Organization (NGO) called Undugu Society of Kenya. It is one of the established local NGOs with great financial positions. It’s being run down by a Board that is now eyeing it’s 20 hectares of land in Kitengela.

They do this by continued sacking of Chief Executive Officers (CEO).

Look, the organization is in debt; it is not able to even pay staff pension funds. Even other statutory deductions like tax is a problem for then to pay.

Last time they bribed Kenya Revenue Authority (KRA) and since that time KRA has been on their case.

Two years ago, a CEO was fired for poor relationship with donors. She sued the organization. The Board hired a lawyer and paid a lawyer in advance (not usual) this lawyer happened to be a manipulation for the organization to lose the case and for the former CEO to share the spoils with members of the board and trustees.

The lady that was acting as CEO was found to be stealing from the NGO. A forensic audit was conducted and the report revealed Kshs.21 million was looted from the organisation.

Wilfred Onono, Chairman Board of Directors

Undugu Capture

The Board, which is led by one Mr. Wilfred Onono, refused to take disciplinary action on the staff because one had proof that a board member who has since become a member of trustees had taken an advance and never paid.

Because of these, Undugu lost a significant donor who will be out by end of the year because of the revelations contained in the forensic report.

A new CEO was hired and he brought in new donors and the organization was progressing well. The CEO was about to start pre-qualification of suppliers when Board members started frustrating him.

This was because many board members are suppliers to the organization. The CEO stayed put on his clean-up exercise.

So the board fired him.

Leonard Membo, Chairman Board of Trustees

Currently, more donors are pulling out but the board is not worried.

Why the board is not worried?

The board is not worried because, when Undugu goes down, the property to be sold to settle debts will line up their pockets; it is a theft spree they cannot wait for. So they are like speeding the collapse of the organisation.

The sad thing is that people will lose jobs because of a corrupt board.


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