I recently spoke about the Safaricom Investment Cooperative (SIC), so it was just a matter of time before it gets here. And if the situation is not arrested in time, the thing will die. Many of its disgruntled members have since stopped contributing, while some stopped years ago!
The current financial report is a bit hair-raising. And many think there’s a possibility the highly marketed “Fixed Deposits” could soon turn into a risky venture.Why?
Chances are we were played by successive SIC leaderships into heavy borrowing and investment into cheap but overvalued projects, such as the one buyers are now complaining about in Cyprian Nyakundi’s attached piece – Consequently, SIC is servicing loans at a very high cost!
The rebates proposed in the report stand at 117m, to be shared only by 48% of the members. The last report indicated that 52% of us shareholders don’t do monthly contributions, thus declared ‘dormant’, and as such don’t qualify for rebates; this was apparently passed at an AGM
The above is happening, yet Article 27 of the SIC by-laws indicate that all members, including the “active” and the now so-called “dormant”, share liability to the company, of course limited to the nominal value of the shares held.
What the above means to me is that every member should get a share of the rebates regardless of whether they are active or dormant.
I mean, how can one’s contribution be dormant yet it is part of the capital being used to trade?
Be careful, for all those running with their money to SIC. I am not just writing, I am a member. I have been one since 2014 (8 years now).
The most depressing bit is that we are not able to opt out and have our monies back, but acha tuingie hiyo AGM. Ikikataa, we shall fight on, there are many options. Punda amechoka!
Ustadh Okello Kimathi
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