EXPOSED!! ‘Rescue Team’ Appointed To Resuscitate Collapsing Sacco Conspire To Squander Ksh. 800K.

A file photo of the troubled Orient Sacco Limited situated at Whiteline Building in Thika Town.

There is disquiet among members of Orient Sacco Limited in Thika after news leaked that the ‘rescue dream team’ appointed to salvage their ailing Sacco machinated to fleece about Ksh. 800,000 through dubious and questionable allowances.

The five-member interim committee chaired by Samson Maina Ngonjoro, has in the last three months illegally awarded themselves a total of Ksh. 761,440 as at 1st March 2017.

According to the records at our disposal, this team has been meeting almost on a daily basis, awarding themselves sitting allowances amounting to Ksh. 20,000 each in some instances which is contrary to their set by-laws. Their constitution only allows this board to meet once in a month or if need be, depending on the magnitude of the matter. Each time, they are all entitled to a sitting allowance of Ks. 5,000.

Data seen by Thika Town Today shows that within the period dating between 8th December 2016 and 1st March 2017, Samson Ngonjoro has already pocketed a total of Ksh. 265,440 in allowances. The other members have taken home money as follows; Bernard Muoka (Ksh. 136,500), Yusuf Kinuthia (Ksh. 127,500), Naomi Mutindi (Ksh. 138,000) and Joseph Kibe (Ksh. 94,000).

During the same period, our sources have revealed that the Sacco has not been paying any money to offset the loans and liabilities it had previously incurred other than the interests accrued over time.

“Even though this team was assigned the duty of recovering the over Ksh. 600 million lost by the previous management, they have not attempted to pay any Principal on the debts and liabilities incurred previously. They have instead concentrated on clearing the interests accrued by these debts with the rest of the money ending up into their pockets,” said one member who requested for anonymity.

Another member questioned the suitability of the interim chairperson Mr. Samson Maina Ngonjoro to even sit in the board. According to him, Mr. Ngonjoro doesn’t qualify by virtue of not being a teacher.

“Ngonjoro is not even supposed to be in that board as he is no longer a teacher. He had previously withdrawn from the Sacco only to sneak back just before we had the Special General Meeting (SGM) last December. Worse still, he is not reinvesting the money he has acquired back into the Sacco coffers,” said our sources.

Ngonjoro’s Sacco shares as at 31st December2016 amounted to Ks. 4,000 but now stands at Ksh. 24,000.

Ngonjoro is also accused of contracting a private firm to audit the institution’s books of account, contrary to the wishes of members and without the consent of The Sacco Societies Regulatory Authority (SASRA).
SASRA is the statutory state corporation mandated to license Sacco Societies to undertake deposit-taking Sacco business in Kenya (popularly known as Front Office Service Activity or FOSA) and to supervise and regulate such Sacco Societies in Kenya.

On 6th December 2016, in a Special General Meeting (SGM) held at The Pastoral Centre in Thika, SASRA suspended the entire management board of the Sacco and oversaw the election of an interim caretaker committee consisting of 5 members who were mandated to oversee the operations of the Sacco until the impasse was resolved. This team was given a 90-days ultimatum to work out a formula on how the Sh. 686 million will be recovered and reverted back to the Sacco members. 

(Related Story:)

Orient Sacco Ltd, whose offices are situated next to Whiteline Hotel in Thika, draws its 4,000 plus membership largely from TSC teachers in Thika Town, Gatundu North and South, Gatuanyaga and Kakuzi Divisions. Its management has been grappling to forestall an eroded confidence and financial prudence with the perennial scams bedeviling the institution have been blamed on weak internal financial controls.

Fireworks is expected next Saturday when the members are expected to attend a SGM to discuss some of these burning issues.

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