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Official defends Sh22m used to promote Sacco

By BONIFACE GIKANDI | Published Mon, February 3rd 2014 at 00:00, Updated February 2nd 2014 at 21:44 GMT +3

By BONIFACE GIKANDI

Murang’a County: The Murang’a County government has spent Sh22 million towards promoting the Murang’a Investment Co-operative Society sparking controversy in the region, a probe team has heard.

County Finance Secretary George Kamau claimed he was misled by interim county officials that contentious issues raised by officials from Capital Markets Authority (CMA) had been addressed.

“All along I was made to believe that issues raised by CMA during a meeting with interim officials were sorted out. I have learnt from this probe team that issues raised remain unsolved,” said the finance secretary.

Appearing before the probe team chaired by former Kinangop MP David Ngugi, the secretary revealed that the expenditure to support promotion of the co-operative was justified on the basis that this is a vehicle that could be used by the local investors to fast track development in the area.

Private session

“The mutual feeling among Murang’a leaders is that most of the development projects realised in the region were achieved through co-operatives,” said Kamau.

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He also disclosed that the co-operative has managed to recruit 3,000 members who have contributed Sh4.8 million as he defended the group as a vehicle that can be used to support development projects in the county instead of relying on investors.

The team has until tomorrow to complete collecting information pertaining to the co-operative before heading to a private session to write a report as directed by Speaker of the Assembly Nduati Kariuki.

Officials from CMA had earlier disclosed that their mission to advise the co-operative officials was ignored several times despite reminder letters being sent.

Savings Societies Regulating Authority officials separately said the co-operative had declined to apply for an operating licence and was therefore operating illegally.

Today, Murang’a Senator Kembi Gitura is expected to appear before the team.

County Woman Representative Sabina Wanjiru appeared before the commission last Thursday and praised the county assembly for appointing the probe team as mandated by the Constitution.


 


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