Regulator opens statutory inquiry into UN Sacco


Mar 16, 2017 , ,

By Jackson Okoth.

The Commissioner for Co-operative Development has instituted a statutory inquiry in United Nations Sacco Society (UN Sacco).
The areas to be investigated during the inquiry, according to Gazette Notice No. 10042, include the Society’s By-Laws, Working and Financial Conditions and Conduct of the Management Committee, past and present members or officers of United Nations Sacco Society Limited.
This is in accordance with Section 58 as read together with Section 73 of the Co-operative Societies Act, Cap 490 of the Laws of Kenya.
“Now therefore, I authorise Mr Philip A. K Oremo, Senior Co-operative Officer, HQs and Mr Anthony M. Waithaka, Principal Co-operative Auditor, Murang’a County to hold an inquiry within 10 days at such a place and time as may be expedient and duly notified by them,” said Gichuki.
This notice is contained in the Kenya Gazette Vol CXVIII-No 149 of December 2nd, 2016.
The UN Sacco Chief Executive Officer, Jack Gudo, however, said the inquiry order is due to issues that occurred in this Sacco in the past and have since been sorted out.
“All is in order and the Commissioner erred in issuing this latest order,” he explained.
Efforts to obtain comments from Everlyn Olunja, Marketing Manager at UN Sacco were unsuccessful as our email queries and phone calls went unanswered.
According to the Sacco Societies Regulatory Authority (SASRA) Supervision Report 2015, United Nations Sacco is placed 6th in terms of Total Assets size and Total Deposits. Its total assets were worth Sh10, 087,475,507 while total deposits stood at Sh7,777,889,283 at the end of financial year 2015.
Trouble begun in 2014 when the then Co-operatives Commissioner, Patrick Musyimi ordered an inquiry into the operations of three financial institutions that operate under the Co-operative Societies Act.
Musyimi, in notices contained in the Kenya Gazette of November 2014 ordered an inquiry into the operations of United Nations Sacco, Kenya’s sixth largest deposit taking Sacco in terms of assets, Muna Sacco Society and Mutungati Farmers Co-operative Society.
The then SASRA CEO Carilus Ademba said that the inquiry into affairs of United Nations Sacco could be related to past fraud that saw a number of employees fired from the organisation.
“There was a fraud some time back and after investigations departmental heads were removed. I think they are on the verge of being surcharged and that demands an inquiry,” said Ademba.
According to notes to the Financial Statements for the year ended December 31, 2012, UN Sacco made a provision for fraud loss amounting to Sh43,540,725 being the estimated loss suffered in the year 2011. The report revealed that the matter was a subject of an ongoing legal process to recover the assets lost.
UN Sacco directors said they had instituted measures ostensibly to stave off any future recurrence of internal audit lapses.
In the opinion of the directors, these measures were to form a stable basis for adequate internal controls in the medium and long term.

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