Co-operatives regulator to probe UN Sacco officials
Acting director of Co-operatives Development Philip Gichuki (left) and PS Ali Ismail at a past meeting in Nairobi. The regulator is set to inquire into UN Sacco operations. PHOTO | FILE
The United Nations Savings and Credit Cooperative Society (UN Sacco) is reported to have requested the Co-operatives Development department to look into the conduct of the financial institution that recently came under the spotlight after sinking almost Sh1 billion at Chase Bank.
Through a gazette notice published on Friday, Co-operatives Development, part of the Ministry of Industrialisation, Trade and Co-operatives, says it will conduct an inquiry into the by-laws, working and financial conditions as well as the conduct of the management committee.
Acting director of Coo-peratives Development Philip Gichuki says the UN Sacco is seeking the help of the agency to help in streamlining its operations, but delinked the investigation to the Chase Bank debacle.
“The UN has requested us to help them with the inquiry on the said issues to help in the general management of their association,” says Mr Gichuki.
The gazette notice said the agency would inquire into the conduct of both the present and past officials of the cooperative.
Mr Gichuki said the inquiry would be significant in streamlining the activities of the UN Sacco by injecting professionalism, based on the outcome of the investigation.
This is not the first time that an inquiry is being conducted into operations of the UN Sacco, one of the richest such organisations.
In 2012, the Co-operatives Commissioner ordered an inquiry into the operations of the society, together with that of two others.
Mr Gichuki, however, said the inquiry had nothing to do with the recent Chase Bank woes. The sacco’s Sh800 million is held at the lender after the financial institution went down.
Two department officers, one from the headquarters and another from Murang’a will conduct the investigation.
There are several Saccos whose cash is also held up at the bank which KCB and Central Bank of Kenya are trying to nurse back to live.
The bank was closed to tame a run on deposits triggered by reports of massive insider borrowing.
CBK governor Patrick Njoroge last week said there were at least eight investors, local and foreign, willing to buy the bank put under statutory management in March this year.
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