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Corporate Fraud

Shoppers Sacco Members Cry Foul

The senior editor of this site has received a complaint from an anonymous member of Shoppers Sacco that is allegedly being defrauded by its CEO and Chairman.

“Hi, Shoppers Sacco is being defrauded by its CEO and Chairman. Kindly help us in raising the awareness about these fraud. How will they help raise funds with such kind of money laundering mentality?”

Initially started as NAKU Sacco before re-branding to Shoppers, the Sacco mainly draws its members from employees of collapsed Nakumatt, the dangling Tuskys, Shopprite  and Woolmatt, among others and has a membership of 16,476.

On their website, the Sacco says it wants to be the SACCO of Choice in Financial Service Delivery with a mission to uplift the living standards of members through mobilization of savings and provision of market-driven financial solutions!

The website also lists these as Shoppers Sacco Board Members.

Wilfred Aima Chairman Obadiah Chibini Vice Chairman
Ronald Mose Hon. Secretary Wilfred Nyaoga    Treasurer
David Thuku Board Member Stella Kungu     Board Member
Supervisory Committee Members
Pamella Adagala Chairlady Benson Maina Secretary

The links between Shoppers Sacco leadership alleged of fraud and the John Munuve led Sacco Societies Regulatory Authority (Sasra) are also of a questionable origin.

“Seems like they work together with SASRA guys coz we have raised the problems to SASRA severally  and nothing is happening nor any action taken,”

Mary Mungai and Sacco Societies Regulatory Authority (SASRA) CEO John Mwaka are alleged to have aided in the plunder and looting of Kenyan Saccos. This site has been exposing them.

Last year, Sources within the Ministry of Trade, which carried out an inspection on SACCOs disclosed to us that the Ministry had planned a crackdown to restore order in the Sh1.2 trillion sector.

Mismanagement has plunged many Saccos into financial distress. Take for instance, out of 7,300 Savings and Credit Co-operative Societies, official ministry records indicated that 2,200 failed the test and had their status declared as either “dormant” or “unknown”.

Nairobi County has the highest number of struggling co-operatives, while Mombasa and Machakos have more dead institutions than thriving ones.

At the Coast, roughly half of the 1,150 Saccos registered in the six counties of Mombasa, Kilifi, Tana River, Kwale, Taita Taveta are dead.

Fraud and non-remittance of deducted member contributions are at the heart of the high incidence of mortality among these savings organisations that have a membership of at least seven million.

Thousands of grassroots Saccos that draw their membership from the most vulnerable populations have specifically been found to be weak, dormant or even worse, died long time ago with members funds.

Earlier this year, David Obonyo, the Commissioner in charge of ethics at the  Commissioners for Cooperatives Development concurred that fraud is prevalent among co-operatives if all the policy changes are followed to the latter.

Obonyo also emphasized that the Cabinet Secretary for Trade has to be a fellow with the courage to approve the policy changes before onward passage to Parliament for legislation.

Among the reasons affecting the monitoring of Sacco operations is the fact that the functions are now devolved, with the Ministry of Industry, Trade and Cooperatives only focusing on policy formulation.

Collapsed SACCOs

In 2018, the Senior editor of cnyakundi.com confirmed the struggles of KENCOM Sacco due to plunder and insider fraud that has seen the Sacco find it hard to meet its financial obligations.

Rachael Wachira, the owner of collapsed Eldoret-based Good Life Sacco was charged with siphoning more than Sh1 billion in members’ savings for personal use. She was charged alongside her husband, Obadiah Maina, who was last month remanded pending the determination of the theft charges against them.

The giant Moi University Sacco (Musco) and Nitunze Sacco, based in Mumias-Kakamega, had their operating licences withdrawn last year. Musco’s main asset, which is a prime office tower in Eldoret town, was liquidated of the Sacco after it was declared insolvent. The Tower was bought by Uasin Gishu Governor, Jackson Mandago

Ekeza Sacco, founder David Ngare was surcharged the Sh1.05 billion he had diverted from the institution to fund his private housing property development, Gakuyo Real Estate.

In Kisii, Nyabomite Coffee Society, inspected this year, was found to have lost more than Sh7.2 million. Managers of the co-operative have since been surcharged, according to Daniel Marube, the CEO of the Cooperatives Alliance of Kenya.

In March this year, Sacco Societies Regulatory Authority (Sasra) revoked the licences of three societies, Nandi Hekima, Miliki Sacco and Sukari Sacco barring them from taking deposits.

And now, Shoppers Sacco, which drew a significant proportion of its 19,000 members from the collapsed Nakumatt Supermarkets, is also battling similar problems.

More cases exposed by cnyakundi.com

Kisumu Teachers Sacco

Urithi Housing Sacco

Chai Sacco

KQDS

Kuza sacco, 

 

 


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