CS Oparanya Orders Forensic Audit of All SACCOs

Cooperatives Cabinet Secretary Wycliffe Oparanya has ordered a major crackdown on all Savings and Credit Cooperatives (SACCOs) across the country as part of a broader plan to ensure proper management of members’ funds.

Speaking during a stakeholder forum on Tuesday, February 18, Oparanya announced that the government would soon conduct a forensic audit of all SACCOs to bring corrupt officials to justice.

The CS revealed that several SACCOs across the country were facing financial distress, a situation which informed the government’s decision to conduct a forensic audit.

Oparanya also disclosed that plans were underway to formulate new regulations to guide the operations of cooperative societies and train SACCO officials.

“The government is implementing decisive measures to address financial mismanagement. Individuals found culpable will be held accountable through the available legal and administrative framework,” Oparanya stated.

“Similar measures will be taken against any cooperative leader who misappropriates or mismanages members’ funds. This will no longer be tolerated,” he added.

The CS disclosed that the tightening of SACCOs was being done to seal several loopholes being used by some fraudulent cooperative officials to steal members’ funds.

He further challenged cooperative societies to strengthen their internal systems to minimise cases of fraud and mismanagement of funds by senior officials.

Oparanya also commented on the alleged embezzlement of funds at the Kenya Union of Savings and Credit Cooperatives (KUSCCO) noting that the umbrella body was currently restructuring to effectively carry out its advocacy and training mandate.

Oparanya’s sentiments came a day after former KUSCCO boss George Ototo surrendered to the police after four days of police hunt over alleged mismanagement of Ksh82 million.

Ototo is among five suspects arrested over alleged embezzlement of KUSCCO funds but were released on Tuesday, February 18, on a cash bail of Ksh14 million.

While delivering the ruling, the Milimani High Court Judge Dolphina Alego also ordered the suspects to deposit a bond of Ksh10 million with the case set to be mentioned on a later date.