George Ototo, the former MD of the Kenya Union of Savings and Credit Co-operatives (KUSCCO), is demanding Sh120 million in retirement benefits even as KUSCCO faces a Sh13 billion fraud scandal.
Thousands of Sacco members are uncertain about their savings, with some of the biggest Saccos suffering massive losses.
The hardest-hit include Kimisitu Sacco, which lost Sh353.95 million, Stima Sacco with Sh108 million in losses, and LSK Sacco, which lost Sh19.2 million.
Where Did the KUSCCO Looted Funds Go?
A forensic audit by PwC revealed massive fraud, and that the money was mismanaged, embezzled, and that the books were cooked. For one, financial authorizations bear the signature of a deceased auditor, Charles Obonyo.
Simply put, the fraud had been ongoing for years, with executives manipulating records to hide the financial mess.
Some of the looted funds were used to finance luxury trips and spent on women linked to top officials.
The audit found that KUSCCO executives withdrew Sh5.47 billion without approval, averaging Sh41 million per month.
Ototo himself took an irregular Sh50 million loan, which is part of Sh61.5 million in unapproved loans.
Suspicious money transfers included Sh318 million sent to KUSCCO Housing’s company secretary and Sh434 million directed to insurance firms for unclear reasons.
Despite the scandal, Ototo has the nerve demand Sh120 million in retirement perks, including unpaid salaries, allowances, and gratuity.
The government has dissolved the KUSCCO board and frozen the assets of key suspects.
The DCI is leading investigations, but despite the scale of the fraud, those involved are free on Sh3 million cash bail, while Sacco members struggle to recover their lost money.
Will justice be served?
By Vivian K.