Opinion and Analysis
Sacco suspensions noble
Posted Thursday, August 9 2012 at 20:27
The suspension of directors of two savings and credit societies by the regulator is commendable and will help restore discipline and integrity in the key sector.
By suspending the officials of Hekima and Wakema saccos, the Sacco Societies Regulatory Authority (Sasra) has finally shown signs of its commitment to fighting the rot that has for decades plagued the sector, denying it a chance to realise its full potential.
Rogue officials have in the past taken advantage of saccos to enrich themselves at the expense of co-operators, eroding the profile of the sector that stands a chance of offering an alternative to the commercial banks.
This kind of filth must not be condoned anymore and all crooks must be removed from the day-to-day management of saccos.
In the case of Hekima and Wakema saccos, the regulator should press for more punitive action than just having the officials suspended. For example in instances where theft is proven, the regulator should ensure those responsible for loss of sacco funds are prosecuted in court and forced to reimburse the money and banned from holding office altogether.
This would certainly sound a warning to other officials engaged in phoney deals and help build the confidence of co-operators who are now finding the saccos a key alternative to banks whose facilities have become too costly especially for the lower cadre of society with low purchasing power.
The future of saccos in Kenya is bright and a few individuals should not be allowed to kill the dreams of cooperators.