Creation of body to manage unclaimed assets marred with controversy

Nairobi, Kenya: Controversy is stalking the setting up of a body that is set to manage property worth over 200 billion shillings in unclaimed assets.

The recruitment of the Chief Executive Officer (CEO) and senior managers of the Unclaimed Financial Assets Authority (UFAA) is facing criticisms of regional imbalance even before the board unveils the new staff.

Tuesday, a Member of Parliament raised concerns that the appointment of the CEO and six senior managers had failed to meet the constitutional threshold of regional and ethnic balance.

Ayub Savula (Lugari) told journalists in parliament that the board had failed to observe the law and had appointed six managers while they are in the process of picking a CEO from a shortlist of three names.

According to a list the MP gave to journalists, the new managers picked are John Kihara Mwangi from Uasin Gishu (manager, unclamed assets line), Jane Wangechi Karuri from Murang’a (manager, finance and accounting), Hilary Maina Wachinga from Nyeri (manager, Audit and risk), Francis Mathenge Muchina from Kiambu (manager, ICT), Alex Musungu from Kakamega (mange, procurement) and Nelly Awori Matheka from Makueni (corporation secretary).

Carilus Ademba from Homabay, Kellen Kariuki from Nairobi and Mbatha Mbithi from Makueni have been shortlisted for the position of CEO.  If gender consideration is taken into place and Kellen Kariki is picked as CEO, it means five of the seven top slots will go to one community.

And even if Ms Kariuki is not picked, Savula argues that it’s unacceptable to pick four out of seven top managers from one region.

“Once parliament resumes, I will table this list before the finance committee as it’s unacceptable to violate the constitution. We are calling on the board to review these appointments,” Savula said.

Tuesday, UFAA board chairman Vincent Kimosop denied completing the recruitment exercise and termed the list as speculative. The chairman did not deny or confirm the leaked list.

“This is an ongoing process and I cannot comment on any details until its comprehensive,” Kimosop said adding that they expect to unveil the management team before end of this month. He added; “We are a team of professionals who are alive to the constitutional requirements of regional, ethnic and gender balance. Apart from this, we also look at merit.”

A part from Kimosop, other board members are Abdijhani Abdirahman Haji Abass, Charles Mwangi Nduati, Asha Ndisyon Ngoley, and Eric Barare Orina to the board. Treasury PS Kamau Thuge also sits in the board.

The unclaimed assets law that has been in place since 2011, has set different periods within which financial assets can be declared dormant and hence unclaimed, which ranges from two years for cheques and seven years for bank accounts. Concerns have in the past been raised as to whether companies will open up and give a true picture of the unclaimed money that they have in their possession. This is especially given the fact that many companies have in the past appropriated unclaimed assets.

On March 19th, 2008, the then Minister for Finance, represented by the Economic Secretary, inaugurated the Taskforce on Unclaimed Financial Assets with the aim of ascertaining the nature, extent and value of unclaimed Financial assets in Kenya. A significant finding by the Task force was that the estimated unclaimed assets in Kenya was in the tune of Sh200 Billion!

Unclaimed property is any financial asset, usually intangible, being held for a person or entity that cannot be found. Examples of these assets are: Dormant or Unclaimed Holding Institution Accounts (Savings & Deposit Accounts), unclaimed shares of stock, or uncashed dividend cheques, Death Benefits & Annuities, Pension & Retirement Benefits, Unpaid and Unclaimed Financial Instruments (Banker Cheques & Drafts, income from Stocks and Bonds, Bail & Bond Monies, Lottery Prizes), Real property (land holdings and buildings).

They may also include unused gift certificates of gift cards, unused rebates and customer credits, accounts receivable, uncashed vendor cheques, and various types of credits reflected on the books and records of a company.