The mess and poor governance ridden Egerton University Sacco has been visited by another massive theft and scandal executed by the son of the supervisory committee chairman Simiyu Matete.
Matete’s son, Evans is said to have disappeared with a whopping Sh1.9 million about two weeks ago, a day before the Sacco’s annual general meeting is said to have crossed the border and is residing with his relatives in Mbale town in Uganda.
Contacted, the chief executive of the Sacco Victor Ruto confirmed the theft saying that the suspect named as Evans, is being pursued by police and asked the government for more assistance to protect the Sacco. He said that Evans had earlier been reinstated against all morals standards and ethics after being sacked for stealing over Sh500,000 from the Sacco. He said the money will be paid by the insurance.
Prior to that, Evans who was reinstated after his father Matete threatened to take legal action against the Sacco, for accusing him of stealing over Sh500,000 from the Sacco, had taken Sh170,000 belonging to a senior member at the Laikipia University branch of the Sacco.
The legal threats forced then chairman of the Sacco Aggrey Tshombes to reinstate the son who had been sacked by another former chairman Job Kipkeput. The re-employment of Evans, had also been opposed by the current chairman Kepha Orina, a government representative at that time and a board member Joyce Ondieki, but Matete’s exploitations of threats and flamboyance won the day.
Members expressed concern and wondered why the government had not moved in. They said they had collected signatures early last year to protest the election of Orina as the chairman of the board and Owidi as the vice chairman and other executive officials but they were dismissed by the county commissioner for Co-operative Nakuru county as trouble makers who do not understand the law and procedures.
During a meeting held on January 30 2015, attended by three immediate former chairmen Prof Muchiri, Tshombes and Kipkeput, angry members said they would not accept further mismanagement of their society with the county commissioner for co-operatives saying nothing except halftruths in some instances outright lies without blinking an eye. Angry members of the Sacco told the county commissioner for co-operatives to shut up and sit down since he was saying nothing other protecting Orina and Matete
Njuguna said the Sasra report that was in circulation and any other documents were real and said though they were meant for the board and staff, members had a right to know what is happening in their Sacco as provided for in the various laws that manage co-operative societies. Njuguna’s reaction came after a member of the supervisory committee Augustine Ndenda requested for arrest of members, some of them senior lecturers for allegedly having documents they were not supposed to have. He forgets that members of the Sacco can access any document of the institution for scrutiny and verification as provided under Co-operative Societies Act Chapter 490, Laws of Kenya.
In an effort to protect his son and hide his criminal activities, Matete has been saying that his son was dead and even requested for compassionate leave to go and search for his sons body in the mortuaries all over the country as members queried as why he believed that his son had died with members money.
In his contributionduring the chaotic AGM, Kipkeput explained how he had spearheaded the Sacco to be affiliated to Sasra as a way of promoting transparency and accountability and urged the institution under Carlius Ademba to save the organisation from outright mismanagement by taking immediate and decisive action.
Njuguna said that Sasra had carried an elaborate inspection of the Sacco’s operation and unearthed serious misapplication of the law and funds, misappropriation of funds as well as abuse of office to the extent that there is unparallel conflict of interest including employing of Matete son who has now caused a huge damage to the Sacco.
The inspection assessed the credit risk exposure of the Sacco based on the regulatory. Section 33 (3b) of the Sacco Societies Act, 2008 requires every Sacco Society to prescribe in writing an asset review system, which accurately identifies risk and assures the adequacy of provisions for losses account. The inspection team reviewed the loans listing with a review of measurement of credit exposure and especially establishing compliance with the regulatory requirements on classification of the loans portfolio based on the performance. A total of 626 loans accounts amounting to Sh110.8 million could not be classified due to incomplete information especially issue date and loan principal amount disbursed. As at August 31 2014, about Sh84 million of the loans were not performing, accounting for 15pc of loan portfolio that is at risk. The analysis further reveals that there is an underprovision of loan loss of over Sh8.8 million excluding the unclassified loans. This implies that the Sacco may not be able to adequately monitor the credit risk exposure. Further, the Sacco had provided for Sh19.1 million as the provision for loan loss against the requirements of Sh38.9 million. This exposes the Sacco to potential capital reduction as a result of the inadequate provision of loan losses and therefore a possibility of collapse. The Sacco, Sasra said has not kept the financial information in the most accurate way possible that ensure that financial condition is fairly stated. Further, the Sacco does not comply with the regulatory requirements especially capital adequacy ratios, liquidity ratio and nonearning assets to total assets ratio. The Sacco has not managed the credit risk in compliance with the Sacco Societies Act by ensuring that the loan book is accurate and complete in reporting, ensuring that loans are completely secured and adequate provisions for the probable loan loss are made. The loan administration is managed within the confines of the credit policy and minimum requirement of the credit management practices in the Act. In the internal and accounting controls, the Sacco has increased risk exposure for member’s funds by allowing the overdrawing of member accounts that also reduces the opportunities for potential revenue. The Sacco does not observe the budget as a planning tool for guidance and cost control and management. The Sacco has to a larger extend not complied with the procurement Act, rules and regulations in engaging management of services. The management of the procurement process has indicated to a larger extend partisan interests. The board has managed its affairs without full proof controls to safeguard member’s funds, especially segregation of duties when the supervisors are absent, incompleteness of the records among others.
Matete’s son, Evans is said to have disappeared with a whopping Sh1.9 million about two weeks ago, a day before the Sacco’s annual general meeting is said to have crossed the border and is residing with his relatives in Mbale town in Uganda.
Contacted, the chief executive of the Sacco Victor Ruto confirmed the theft saying that the suspect named as Evans, is being pursued by police and asked the government for more assistance to protect the Sacco. He said that Evans had earlier been reinstated against all morals standards and ethics after being sacked for stealing over Sh500,000 from the Sacco. He said the money will be paid by the insurance.
Prior to that, Evans who was reinstated after his father Matete threatened to take legal action against the Sacco, for accusing him of stealing over Sh500,000 from the Sacco, had taken Sh170,000 belonging to a senior member at the Laikipia University branch of the Sacco.
The legal threats forced then chairman of the Sacco Aggrey Tshombes to reinstate the son who had been sacked by another former chairman Job Kipkeput. The re-employment of Evans, had also been opposed by the current chairman Kepha Orina, a government representative at that time and a board member Joyce Ondieki, but Matete’s exploitations of threats and flamboyance won the day.
Members expressed concern and wondered why the government had not moved in. They said they had collected signatures early last year to protest the election of Orina as the chairman of the board and Owidi as the vice chairman and other executive officials but they were dismissed by the county commissioner for Co-operative Nakuru county as trouble makers who do not understand the law and procedures.
During a meeting held on January 30 2015, attended by three immediate former chairmen Prof Muchiri, Tshombes and Kipkeput, angry members said they would not accept further mismanagement of their society with the county commissioner for co-operatives saying nothing except halftruths in some instances outright lies without blinking an eye. Angry members of the Sacco told the county commissioner for co-operatives to shut up and sit down since he was saying nothing other protecting Orina and Matete
Njuguna said the Sasra report that was in circulation and any other documents were real and said though they were meant for the board and staff, members had a right to know what is happening in their Sacco as provided for in the various laws that manage co-operative societies. Njuguna’s reaction came after a member of the supervisory committee Augustine Ndenda requested for arrest of members, some of them senior lecturers for allegedly having documents they were not supposed to have. He forgets that members of the Sacco can access any document of the institution for scrutiny and verification as provided under Co-operative Societies Act Chapter 490, Laws of Kenya.
In an effort to protect his son and hide his criminal activities, Matete has been saying that his son was dead and even requested for compassionate leave to go and search for his sons body in the mortuaries all over the country as members queried as why he believed that his son had died with members money.
In his contributionduring the chaotic AGM, Kipkeput explained how he had spearheaded the Sacco to be affiliated to Sasra as a way of promoting transparency and accountability and urged the institution under Carlius Ademba to save the organisation from outright mismanagement by taking immediate and decisive action.
Njuguna said that Sasra had carried an elaborate inspection of the Sacco’s operation and unearthed serious misapplication of the law and funds, misappropriation of funds as well as abuse of office to the extent that there is unparallel conflict of interest including employing of Matete son who has now caused a huge damage to the Sacco.
The inspection assessed the credit risk exposure of the Sacco based on the regulatory. Section 33 (3b) of the Sacco Societies Act, 2008 requires every Sacco Society to prescribe in writing an asset review system, which accurately identifies risk and assures the adequacy of provisions for losses account. The inspection team reviewed the loans listing with a review of measurement of credit exposure and especially establishing compliance with the regulatory requirements on classification of the loans portfolio based on the performance. A total of 626 loans accounts amounting to Sh110.8 million could not be classified due to incomplete information especially issue date and loan principal amount disbursed. As at August 31 2014, about Sh84 million of the loans were not performing, accounting for 15pc of loan portfolio that is at risk. The analysis further reveals that there is an underprovision of loan loss of over Sh8.8 million excluding the unclassified loans. This implies that the Sacco may not be able to adequately monitor the credit risk exposure. Further, the Sacco had provided for Sh19.1 million as the provision for loan loss against the requirements of Sh38.9 million. This exposes the Sacco to potential capital reduction as a result of the inadequate provision of loan losses and therefore a possibility of collapse. The Sacco, Sasra said has not kept the financial information in the most accurate way possible that ensure that financial condition is fairly stated. Further, the Sacco does not comply with the regulatory requirements especially capital adequacy ratios, liquidity ratio and nonearning assets to total assets ratio. The Sacco has not managed the credit risk in compliance with the Sacco Societies Act by ensuring that the loan book is accurate and complete in reporting, ensuring that loans are completely secured and adequate provisions for the probable loan loss are made. The loan administration is managed within the confines of the credit policy and minimum requirement of the credit management practices in the Act. In the internal and accounting controls, the Sacco has increased risk exposure for member’s funds by allowing the overdrawing of member accounts that also reduces the opportunities for potential revenue. The Sacco does not observe the budget as a planning tool for guidance and cost control and management. The Sacco has to a larger extend not complied with the procurement Act, rules and regulations in engaging management of services. The management of the procurement process has indicated to a larger extend partisan interests. The board has managed its affairs without full proof controls to safeguard member’s funds, especially segregation of duties when the supervisors are absent, incompleteness of the records among others.
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