Metropolitan Sacco Officials Facing Prosecution over Embezzlement of KSh 12 Billion

Metropolitan Sacco PHOTO/Courtesy
Metropolitan Sacco PHOTO/Courtesy

Officials and the management of Metropolitan National Sacco are facing a possible prosecution over an alleged embezzlement of KSh 12 billion.

The Commissioner of Co-operatives conducted an audit that put former and current officials and management of the Sacco on the spot over loss of the aforementioned money.

The auditing authority is investigating possible embezzlement of the funds through withdraws, cash transfers and irregular loans that were defaulted.

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The saga under scrutiny dates back from 2010.

The Commissioner of Co-operatives has since kicked out the current board of directors and appointed a three-mouth caretaker committee as Investigations continue.

The ongoing investigations could also unearth the relationship between Sacco officers and rogue officials at Sacco Societies Regulatory Authority (Sasra) after it emerged that the Sacco has been declaring false financial numbers.

“With the actual income of Sh6.8 billion, and the actual expenses of Sh18.8 billion over the last 24 years, the society has made cumulative losses amounting to Sh12.008 billion. What we have reported as growing and a very good Sacco over the years has not been the position,” Daniel Mwatu, a senior compliance officers at Sasra.

It was realized that the Sacco management has been manipulating systems to cover-up their mistakes and wrongdoings.

“You will be held accountable. The actions you do will be followed. You can run but you cannot hide. It’s very painful that members tightened their belts. Denied themselves, and then someone takes advantage of that to have a luxurious life

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“Because all those people are alive, we are saying all is not lost because they will be followed so that whatever they have taken from this organisation returns to the owner,” Director of Co-operatives Nairobi County, Delphine Aremo said.

The Sacco management would also cook accounts books which would be used to declare dividends and rebate.

“Someone would manipulate the records to say that the loans are being paid while it was not being paid. We established that the loan book was not doing well. What else was being done to cover-up the lapses, was manipulation of loans,” Mwatu said.

Those recommended for actions include board of directors, heads of departments who served between 2010 and 2021 led by former CEO Francis Ng’an’ga, his predecessor Benson Mwangi, heads of finance, internal audit, compliance, ICT and credit.

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