Saccos ordered to produce audit reports

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By Erick Nyayiera

Kisumu County Government’s department of co-operative development has ordered all cooperative societies in the region to produce audit reports or risk punitive action.
County Executive Committee Member in charge Business, Industrialization and Energy Alice Moraa deplored a tendency adopted by Saccos where they produce doctored audited reports that do not depict the true financial positions of the societies.
“The department has regrettably learnt of gross misconduct by leadership of various co-operative societies in Kisumu County who have perfected the art of giving fake audit reports that only suit their needs but does not reflect what is in their transaction books. All societies must furnish my office with credible audited reports,” said Moraa.
The CECM who was the Chief Guest during the County’s celebration of the 96th Ushirika Day held in Kisumu town, also regretted over the poor saving culture in most of the local Saccos and called on the various society leadership to consider strengthening their resource base thorough savings to be able to invest.
She also stated that poor leadership was also to blame for the underperformance in most local co-operative societies in the County. She particularly took issue with the management of the Kisumu Jua Kali sector leadership who brought it down due to mismanagement.
“A number of good co-operative societies died just because of leaders, let it be put in black and white that the people who mismanaged the monies belonging to the Jua Kali Sacco must be made to pay the money, we are coming for you,” Moraa pointed out
County Commissioner for Cooperatives Zephania Osok advised Saccos to establish rules on guarantee to protect those who guarantee members and have to suffer when those guaranteed fail to service loans.
“Use collateral or self-guaranteeing or even log book to secure loans from banks. There is a problem happening in our local saccos where members look for persons to guarantee them get loans but end up failing when they are needed to repay thereby subjecting guarantors to servicing the loans”, said Osok.

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