Over 100,000 members of Metropolitan National Sacco Limited have been hit hard after reports emerged that the finance institution has lost a jaw-dropping amount of Ksh15 billion between 2021 and 2023.
Metropolitan National Sacco interim chairperson has squarely blamed the former regime that reportedly failed to account for the expenditure and the whereabouts of the members’ savings.
These accusations are part of a larger narrative involving a well-orchestrated syndicate within the Sacco’s top ranks that has seen billions siphoned off in a brazen display of corruption.
An audit earlier this year has revealed that a staggering Ksh12 billion was stolen or embezzled from a savings and credit cooperative society (Sacco) through a sophisticated scheme involving both former and current senior staff, as well as board members.
The audit report highlights severe financial misconduct, showing that the funds were not only stolen but also deliberately diverted through hidden channels. This left Sacco members unable to access their own savings or loans.
Metropolitan National Sacco Scandal
The scandal came to light three years ago after several complaints from members about their inability to access funds. The frustration of members, who were blocked from withdrawing their money, led to a demand for a deeper investigation.
“We are asking this 15.7 billion that have been lost, you are in the office, and you are not providing information even the auditor they are all saying they have no information you want us members to trust you that you are taking us in the right direction. before we go to the next step first of all we go back to cover the money that got lost,” said a Sacco member.
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In April 2022, a special audit team was assigned to examine the Sacco’s operations, revealing extensive theft and embezzlement. Despite these findings, no arrests have been made, and the stolen money and assets are still missing.
One major issue highlighted was the case of Ksh49 million withdrawn illegally by a teller at the Nakuru branch, which was just one of many problems with the Sacco’s financial controls.
Additionally, Ksh7 billion was allegedly loaned to fake members, raising serious concerns about the loan approval process.
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The audit also found that Sacco directors had used members’ deposit money to pay out dividends and rebates instead of using actual profits.
Call for Investigations
This manipulation made the Sacco’s financial situation appear healthier than it was, inflating its balance sheet from Ksh14 billion to a misleading Ksh28 billion which in turn helped cover up the underlying financial problems and allowed the fraud to continue.
Further issues included Ksh490 million in questionable loans given to Sacco employees and Ksh176.9 million missing from branches in Kisumu, Thika, and Kiambu. These revelations have shaken members’ trust, with many worried that they may never recover their savings.
On August 15, the Sacco’s interim board met and urged government agencies, including the Directorate of Criminal Investigations (DCI), to speed up their investigation and recover as much of the stolen money as possible.
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