Gov’t Body In Hot Soup As Audit Reveals Ksh12 Billion Hole
An affiliate meeting at the Kenya Union of Savings and Credit Cooperatives on Friday, December 13, lay the groundwork for the umbrella organization, which has threatened to cripple its operations and destabilize the situation of SACCOs and cooperatives in Kenya.
A forensic study presented at a meeting attended by Cooperatives Cabinet Secretary Wycliffe Oparanya revealed significant financial irregularities inside the national body, resulting in financial losses of Ksh12 billion.
Aside from financial problems, the devastating report revealed examples of stolen funds, unauthorised loans, and dubious investments, which were among the issues raised against KUSCCO.
According to the research, the members’ billions of dollars in savings were in imminent danger of vanishing.
Held Affiliates meeting with 300+ members. Unveiled forensic audit findings, ensuring transparency. Investigations ongoing for accountability. Focusing on Co-operative Bill 2024 and committed to protecting SACCO interests. #Transparency #Accountability @Ushirika_Kenya @DrOparanya pic.twitter.com/Xqofd69YVL
— Kuscco (@kuscco) December 13, 2024
Senior officers from KUSCCO were also named in the study. According to the investigation, authorities conspired to siphon funds using shell firms and fake projects.
This comes after the KUSCCO Board was sacked following revelations that Ksh6 billion was illegally withdrawn from the union.
“Our work provided evidence that supported the fact that there were widespread cases of mismanagement, asset misappropriation, and even, in some cases, diversion of the resources of the organisation,” informed one of the auditors.
The auditors’ conclusions offered a bleak picture of KUSCCO’s financial situation and were followed by harsh suggestions to remedy the crisis.
These included early liquidation to avert future losses and protect residual assets, as well as reforming the management team to include independent professionals without prior union links.
In order to regain faith in cooperatives, repayment plans will be implemented for affected members.
On his part, Oparanya sought to reassure the country’s unions and SACCOs about reforms as pressure mounted on the government to keep its commitments to restructure the cooperative sector.
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Oparanya vowed to resuscitate the scandal-plagued union and bring all persons involved to justice, reiterating the government’s commitment to this end.
Oparanya voiced his regret while assuring Kenyans that decisive action will be taken.
“All this is an issue of bad governance. If you cannot deal with it legally, you deal with it politically,” Oparanya affirmed.
All eyes are focused on the government as impacted citizens await its intervention in resolving the disaster.
Gov’t Body In Hot Soup As Audit Reveals Ksh12 Billion Hole
