Officials of Kenya Bankers Sacco Society Ltd Sacco have deprived members of millions of shillings and defrauded the Kenya Revenue Authority, according to a report prepared by the Sacco Society Regulatory Authority.
Sasra conducted an onsite inspection exercise on the operations of Kenya Bankers Sacco Society Ltd. Sasra has powers to conduct inspections on a Sacco society at any time. The inspection opened a can of worms at the Sacco where rot was unearthed.
Sasra observed that there were serious lapses in the Sacco’s credit management practices that have exposed it to a high credit risk, thereby threatening its sustainability.
The lapses include failure to adhere to loan approval processes, members of the credit committee approving loans beyond their recommended limits as per the credit policy, and loans being approved without the requisite documentation such as members’ latest payslips being some of the key questions raised by the regulatory body.
The management of the Sacco also involved itself in noncore business activities mainly real estate and land projects, which have had a huge negative impact on the Sacco’s financial position and consequently led to reduced activity in the Sacco’s core business of advancing credit to its members.
Impaired investments include Shaba Housing Sh389, 537,794 and land projects 68,568,877, totaling to 458 106,671 which the authority says their recoverable amount is lower than their carrying amount and thus must be written off the books of the Sacco.
They say the Sacco maintained an executive committee of chairman, treasurer and secretary who were operational directors involved in day-to-day running of the Sacco such as in the approval of payment vouchers contrary to Regulation 59 (3) which prescribes that the board of directors shall consist of elected non-executive members involved in general strategy and oversight.
Vincent Chisaka is the chairman, Gertrude Wabunga his vice, Dennis Owino secretary, George Namwoso treasurer, Sally Oimbo member together with Vincent Mutambo, Ahmed Omar, Paul Kinge and Elijah Dede.
Due to underhand deals, the Sacco supervisory committee chaired by Maureen Kivava, RensonChikololo, secretary, and John Mwangi, member, has been compromised and is on the management payroll and cannot raise any issues.
The report says the Sacco board and management have not been charging tax on the board allowances but have instead been irregularly paying the applicable tax obligations using members’ funds, thus passing the tax burden of individual directors to members. They also pay excess allowances to directors.
The Sacco’s board and management has also been irregularly deducting Sh2000 per sitting from the taxable amount per director disguising it as allowable per diem deductions in a well calculated move to reduce the tax payable and deny the government tax revenue.
The Sacco purchased land number 12715/143 from Mildred Mbuya Muli on November 26 2012 for a sum of Sh50 million plus additional costs amounting to Sh2.6million. The Sacco later resold the same piece of land to NK Brothers for Sh70 million as evidenced by a sale agreement dated January 14 2016.
On February 1 2016 Sh7 million (cheque no 00849) being deposit of purchase price for the aforementioned piece of land, was deposited in National Bank (Kenya Bankers Investment Co-operative Account number 01042087888700 Amanah). Hence, a total of Sh69,065,050 was received by the investment company towards the purchase of the land.
A review of the investment company bank account established that the investments company paid the Sacco Sh60 million in regards to the sale of the land as follows: May 6 2016, Sh35 million was transferred to Prism Investment Ltd to finance the completion of the Shaba project, on June 10 2016, Sh25million was transferred to the Sacco’s bank account at Citi Bank,
However, there was no evidence showing that the balance of Sh9million owing from the sale of the land was ever received by the Sacco from Kenya Bankers Investment Co-operative, its sister company charged with investments though run by the same directors and managers of the Sacco notwithstanding.
The Sacco also engaged Packlines System Limited in 2015 to provide and implement a mobile banking software and again later in 2016, to facilitate an update of their core system without advertising the tender which runs into millions of shillings.
The contract is also open which ended up as its directors cannot be traced at the government registration offices. The Sacco lost Sh300, 000 when its systems were hacked,
The report recommends that all the payments made to the service provider over and above the prescribed rates be immediately recovered.
It also recommends that extra money paid to the directors and managers be recovered from the salaries and allowances and that tax be remitted to the KRA.
It also further advocates that branches categorised as Nyanza, Western, South Rift Nairobi, Coast, Central, Eldoret, Kitale and Meru which consumed Sh29,504,689 million in branch AGM expenditures and Sh11,084,490 in allowances between 2012 and 2018 be dissolved as they were serving no purpose.
The Sasra inspectors who prepared the report were Daniel Kimoli , Stephen Michubu , Lorna Olala, Nelly Kulei and Daniel Mwatu.
Joho works on Coast 2022 lineup – Weekly Citizen
Mombasa governor Hassan Joho has renewed his war against Coast elected leaders who are perceived to be supportive of William Ruto’s 2022 Presidential bid. Currently, Kwale Governor Salim Mvurya is under siege from hostile MCAs suspected to be under instructions of Joho through county speaker Sammy Ruwa.
Ruwa has been a longtime Joho sidekick and has also acted as his legal adviser in the past. He has been fronted for governor seat twice but rejected. He is speaker for a second term. Towards the end of Mvurya’s first term, he has been a Ruto man. He has no time for Joho, insisting Kwale is not an extension of Mombasa county. In the last general elections, Joho had vowed to ensure Mvurya was defeated at the ballot. But this was never to be after the Mombasa governor fell out with Chirau Mwakwere who was a sure bet against Mvurya on the then popular ODM ticket.
After Mwakwere bolted out of ODM to Wiper, Joho turned to little known Issa Chipera as party candidate. Chipera literally became minced meat for Mvurya who easily beat him and made a comeback on a Jubilee ticket. Mvurya is grooming his deputy Fatuma Achani to succeed him in the next general election but observers say this is a tall order. Joho on the other hand is reportedly pushing Crop Development PS Hamad Boga for the Kwale seat against Mvurya’s candidate and Mwakwere. Another Ruto man on Joho’s radar is Kaloleni MP Paul Katana. Recently, the legislator was discharged as a member of the parliamentary investment committee in actions said to have the Mombasa governor’s hand.
Ironically, Katana was Joho’s PA when he served as Kisauni MP. But it appears other than fighting Katana for aligning himself with Ruto, he never wanted him to be MP in the first place. In the 2013 general election when Katana first contested and lost to little known Gunga Mwinga, there were allegations that ODM insiders had rigged him out. Currently, Joho is said to be financing the political activities of Mwinga to undermine Katana in the constituency. Katana has said severally that his cooperation with Ruto is because of the handshake between Raila Odinga and President Uhuru Kenyatta. “I’m a loyal member of ODM with full respect to my party leader. I also support the handshake and that is why I have been working with DP Ruto to further development in my constituency,” the legislator was quoted as saying.
He has also said his cooperation with Ruto is not for selfish reasons but for the benefit of his constituents. He says the DP has presided over high profile funds drives towards public projects in his constituency. The MP says some of the people fighting him have never assisted Kaloleni to move forward but wants leaders who can bootlick them.“I’m independent-minded and I work for the interest of my people who elected me and have no time for sycophancy,” Katana says. Mohammed Ali of Nyali constituency and a close ally of the DP is another one whom Joho is scheming against. He is pushing his cousin Said Abdalla aka Saido against the Jicho Pevu.
Jicho Pevu’s recent rising political profile after he filed a motion to impeach transport CS James Macharia over chaos at Mombasa port has alarmed the Joho camp. In spite of the rejection of the motion by Speaker Justin Muturi, Ali has become a hero in Mombasa. Last week, pro-Joho Mombasa MPs led by Mvita’s Abdulswamad Nassir were doing damage control. They toured the port and pleaded with the KPA management to put out a notice affirming that usage of SGR for containers upcountry was optional. This was meant to cool the heat against them after residents began collecting signatures to recall them for failing to support Jicho Pevu motion. Another Joho political foe Aisha Jumwa of Malindi constituency is politically wounded and the Mombasa governor no longer cares what she does or says. The Malindi MP’s self-inflicted woes have dimmed her 2022 Kilifi governor bid.
Fresh political formation in Siaya ahead of 2022 – Weekly Citizen
There are plans afoot to drop Alego Usonga MP Samuel Atandi from a leading role in Senator James Orengo gubernatorial campaign team. Observers point that the surprising decision was reached after it became clear that the controversial legislator was no longer appealing to the majority of voters.
There were earlier reports of an inside analysis conducted within Siaya senator campaign inner circle that hinted the disadvantages of trusting the MP with a major role yet he was also facing stiff opposition from notable politicians in the region. The development debate comes hot on the heels of a video that went viral showing the evidently intoxicated legislator dancing suggestively during a house party attended by women, as his Gem counterpart Elisha Odhiambo cheered. Weekly Citizen has established that political formations are already regrouping in Siaya ahead of 2022 general election and a section of political leaders including top ODM party officials from Alego Usonga are not happy with Atandi’s quick move to front Senator Orengo for the county’s governorship.
Area governor Cornell Rasanga has confronted the lawmaker on a number of occasions describing his early campaigns in support of Orengo as a lack of respect for his office. The protest by the governor sparked off an anti-Atandi wave as he was immediately joined by a host of formidable politicians from Alego Usonga in castigating the MP accused of overstepping his political mandate. The local ODM party leadership led by Alego Usonga branch chairman John Orwenjo, and secretary Paul Jura reaffirmed that the party had crowned Rasanga as their bona fide patron and it was, therefore, his duty to offer political direction on matters regarding his successor. The Orengo-led group which also brings together Gem MP Elisha Odhiambo and his Rarieda counterpart Otiende Amollo has been roundly accused of leading early full-scale political activities at the expense of development.
MCAs chairman Sylvester Madialo warned Atandi to stop creating confusion among voters, adding he should hold his horse and wait for the party whistle to be blown or prepare to equally lose his seat at the ballot. The leaders including Township MCA Obiero Otare, Vincent Odawa (North Alego), Judy Okumu (West Alego), Joseph Mboha (South East Alego), and Winnie Otieno (nominated) have loudly questioned how Atandi would deliver for Orengo when he is standing on a politically shaky ground. It is claimed that the Siaya senator blocked Atandi from using his chopper to escape from a crowd that turned rowdy during a food distribution to flood victims in his constituency. It is reported that trouble started after the MP barred Usonga ward MCA Madialo from addressing his voters after the food distribution. People with disabilities who had attended the event reportedly bayed for his blood after he gave them a paltry sh100 prompting Orengo to deny the lawmaker a chopper ride in fear that associating with him would jeopardize his 2022 governorship bid.
Rogue Kisumu NGO’s money minting gimmicks – Weekly Citizen
Various stakeholders and residents of Kisumu county have called upon Nyanza regional police commander Noah Mwivanda and his DCI counterpart Daniel Kipsoi, to investigate the activities of the chairman of an NGO called Magnum Environment Network Michael Nyaguti. The NGO, it is claimed, is a briefcase one with no donor funding surviving fully on extortion and threats. By last week, a victim was planning to institute private criminal charges against the NGO.
They are accusing Nyaguti of extortion and blackmail of people under the guise of encroaching on water catchment areas and flouting environmental laws failure of which he always resorts to going to courts as an interested party of the said social vice. One of the victims narrated that sometimes back, he was developing rental houses near Lake Victoria and had been given all the required documents from the county, Nema, and all relevant authorities to commence his work only for Nyaguti to appear menacing at the site with a group of people he called officials of Magnum Environment Network accompanied by some people who looked like police officers who demanded that I show them documents in regard to what I was doing. Most developers ranging from real estate to hospitable industries are saying that they are really undergoing rough times in the hands of the said Nyaguti who on most occasions is accompanied by some rogue police officers who intimidate and threaten their respective targets with arrests. The said Nyaguti had sometimes back attempted to extort Sh5 million each from former governors Evans Kidero and Jack Ranguma, together with a senior leading civil servant under the guise that they had bought land which should have been part of Lake Victoria.
When the trio was adamant that they would not give him any money, he sued them saying they had encroached on wetlands. The same Nyaguti also sued the Kisumu county government and Nyanza Golf Club which he accused of reclaiming the wetland at the mouth of River Kisat without convening a public participatory forum, as part extortion antics but his bid has fallen on deaf ears. He had also sued Kenya Ports Authority, Kisumu after the parastatal had ordered beach management units out of its land after collecting thousands of shillings from the said victims. Recently together with other activists, they stormed Western offices of Kenya Wildlife Service demanding that they investigate a ring of cartels believed to be working in cahoots with officers to defraud victims of wildlife attacks of their compensation. After his request was rejected, he called a meeting in Kisumu with some of the victims who had not been paid and tried to convince them to give him the power of attorney so that he could press them for their payment. Efforts to get Nyaguti’s comments were fruitless while a senior KWS officer said that they have a clear policy on how KWS compensates. “KWS has no agreement with anyone to peruse payments,” he said.