Panic grips workers as auditors probe Sh60m loss

By JOEL OKWAYO

Kakamega County

Anxiety has engulfed workers at a co-operative society in Kakamega County after the Government dispatched forensic experts to the institution to unravel the whereabouts of over Sh60 million.

The detectives have been mandated to trace the "missing cash" after auditors from the Ministry of Co-operative Development and Marketing failed to locate the money.

An inquiry report by the ministry revealed massive loss of funds at Mumias’s Sukari Savings and Credit Co-operative Society due to lack of records.

The detectives landed at the society yesterday to trace the money after it emerged that the records were still missing, with some of the members who took loans remaining unknown.

The ministry noted that the management of the society resolved to engage the experts after members demanded that the money be recovered to prevent the collapse of the institution.

Better returns

Mumias District Co-operative Officer Stanslaus Wambani said the decision to involve forensic experts was reached after it emerged that there were no records in the society’s registry.

He explained that some workers who either retired or were retrenched from Mumias Sugar Company (MSC) left the premises without clearing their loans. "Some loans cannot be recovered since defaulters have already retired and vacated the company premises," said Wambani, who was speaking in Mumias town.

The forensic experts were invited to the society after members resolved to involve them.

The society’s chairman Isaac Shieunda said they are undertaking reforms to ensure members get better returns from their investments.

The society has already applied to the Sacco Society Regulatory Authority (Sasra) for a licence to take deposits. Shieunda said the move is aimed at ensuring that they comply with the standards set by the Government in provision of financial services to members.

Western Provincial Co-operative Officer Nathan Mukhweso and Sasra chief executive officer Carilus Ademba, who presided over an AGM that saw Sukari members insisting on the use of services of forensic experts, said they will ensure societies in the region comply with the set out standards. Wambani said leadership wrangles at the institution were over and the management is now working in harmony with members.

He said the management is set to implement the recommendations of a Government inquiry report for members to get better dividends this year.

Wambani said the ministry is also carrying out an inspection to identify societies that have not complied with Government guidelines.