Regulator opens statutory inquiry into UN Sacco

By

Feb 14, 2017
Share

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.

Leave a Reply

Your email address will not be published. Required fields are marked *