The Ethics and Anti-Corruption Commission (EACC) has signed a memorandum of understanding (MoU) with the Commissioner of Cooperatives to conduct lifestyle audits on top management of Savings and Credit Co-operative Societies ( Saccos).
The Mou will see EACC conduct lifestyle audits and recover assets and funds that have been looted from Saccos.
“The MoU will ensure law enforcement is realised through lifestyle audits, integrity testing, supporting the prosecution of cases on corruption and economic crimes, reviewing and strengthening the legal framework, exchanging information and disclosure,” Mbarak, the EACC CEO said.
Speaking at the same function, EACC Chairperson Eliud Wabukala said evidence has shown there is massive corruption and unethical conduct within the cooperative sector which has resulted in loss of millions in members savings.
Last week, the EACC recovered stolen public property worth Sh780 million in Nakuru and Bomet counties. The commission returned the recovered assets to the governors and promised to recover more grabbed public lands.
Media reports and exposés on this site shows that Saccos are not what they used to be. The trust is gone!.
The over trillion shillings sector is under threat of collapse from mismanagement of funds, theft and scammers.
If done well, the lifestyle audits will straighten the wayward sector that has in recent times been bedeviled by cases of loss of funds and outright graft.
Some of the biggest cases of Sacco scams are Gakuyo companies where over 70000 people lost over a billion shillings; Stima Investment (Kshs. 500 million); Mwalimu Sacco (Kshs. 3.5 billion) ; and the Urithi Housing Sacco which continues to fleece customers by selling them grabbed land.
Past cases of mismanagement continue to haunt some entities such as Harambee Sacco. Harambee continues to make losses and has now appointed a manager, Dr. Georege Ochiri from Safaricom Sacco as CEO. Dr. Ochiri promises to turnaround the mismanaged and graft laden Sacco. [lets wait and see – we wish him well though!]
Sacco Societies Regulatory Authority (SASRA) whose mandate is to Regulate and supervise Sacco’s seems to be sleeping on the job. SASRA should step up efforts by reigning in on rogue Saccos or be disbanded.
In this era of unlimited corruption owing to a drunk state house and a lackluster Central Bank of Kenya (CBK) – runaway financial crimes, people need to be vigilant where they save their money; if not, then a revolution should save us of this curse.
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