Writes Leo Odera Omolo In Kisumu City.
Trouble is brewing at the 780 members Maseno University Co-operative Society Ltd {SACCO}, which has resulted in the former management committee officials being fired.
The chairman of the former management committee, Prof. Joseph Akeyo Omolo could not be reached for his immediate comment over the alleged take-over by a new group.
The SACCO of the Maseno University workers, it is further being alleged, had borrowed a colossal amount of money, to the tune of Kshs 30 million from a Nairobi City Micro-Finance institution, without the consent of the members. The matter only came to light when the lending institution started pressurizing the SACCO for the repayment of its loan money.
The loan money, according to some sources, never reached the SACCO members, and the management committee and their henchmen alleged disbursed it among themselves, leaving the members in the dark. The SACCO manager has absconded, allegedly with the locked office keys.
The lending Institution, Micro Enterprises Support Programme Trust {MEST} is based in Muthithi House, Nairobi.
According to MEST letter dated 9th July, 2009 , the SACCO had requested for a loan of Kshs 50 million in July 2007. But in return, was approved for and received Kshs 30 million instead.
A letter written and signed by Prof. Akeyo Omolo, who is also reported to be the chairman of the Karachuonyo Constituency Development Committee{CDF} read as follows in part, ”We are Saving and Credit Co-Operative Society with a total member of 780, and has been in existence for the last eighteen years..
The purpose of this loan would be for onward lending to members as loan and the society shall be a floating charge over the society’s assets..
We would be very grateful if this application would be given the required consideration as it shall go a long way in enhancing our member’s social welfare.”
The loan requested by the Maseno University SACCO was approved and cash money released in two tranche of Kshs 15 million each, bringing the loans money to a total of Kshs 30 million. Most of the SACCO members says they were not made aware of the existence of the money, which the previous management committee only used in allocating loans for themselves.
Meanwhile, the Nyanza Provincial Deputy Commissioner of Co-operatives intervened and ordered for an inquiry over the management of the SACCO, and when the inquiry was over, the SACCO members called for an annual general meeting so that the report of the inquiry could be read to the members. But they were shocked when the officials moved to court and filed an urgent injunction blocking the report of the inquiry not to be read to the members.
The action intensified the disagreement. The SACCO manager, whose names was only given as Leonard later locked the office and went away with the keys. Members were forced to break the pad-locks on the office door to regain entry when the new group moved in and seized the office.
Rumour began circulating to the effect that the Maseno University SACCO manager has built for himself a double storey residential building at Lolwe Estate in Kisumu suburb and another mansion at at Mamboleo estate in the outskirt of the City..
The troubles were sparked off by a letter written by Mr John Masha, the credit officer of the MEST and addressed to the Deputy Vice Chancellor in Charge of Finance and Administration. It provided Maseno university with details of the outstanding loan, arrears and penalties incurred pertaining to the MEST loan of Kshs 30million disbursed to the SACCO.
As at 9, 2009 the outstanding loan money stood at Kshs 23,919,928.515. The arrears and principal stood at Kshs 7,103,297.70, while the penalties imposed in default of payment stood at Kshs 1,190,910. Also in the package to the Deputy VC was the SACCO application, MEST ‘s letter of offer, minutes of the management committee resolving to borrow MEST, loan agreement, debenture and letter guarantees and certificate of registration of the SACCO. It also disclosed the details of how money was released in two tranches to the SACCO of Kshs 15 million each.
The names of the following persons were given as the loans guaranteers; Prof Joseph Akeyo Omolo, Amos Gwela, William Pudha, Benard Odhong’, Samson Opondo, Edward Kegode, Mary Tambo, Charles Abuto and Done Nyagwella.
The MEST letter went on, “All the above officials individually signed the letter of guarantee. A sample letter of guarantee by Prof.Joseph Akeyo Omolo has been enclosed for your perusal.
“We look forward to your intervention to facilitate the repayment of our loan, which has remained in arrears since January 2009. Please do not hesitate to contact me or Jeff Njagi our CEO should you require any additional information on this matter. We look forward to hearing from you soon”, says the MEST’S letter.
The officials who were alleged kicked out were Prof. Joseph Akeyo Omolo (the chairman), Amos Gwella, the treasurer and the entire previous management committee members.
The members elected an interim committee are headed by Mr. Edward Olela as the interim chairman and Dr. Nyambega as the interim treasurer while Fatima Mogedo is the acting secretary of the new management committee.
Members also appointed a sub-committee to investigate the messes done by the dismissed officials, and also to conduct a thorough investigation about the investments and property of these SACCO ex-officials with an aim of instituting the recovery measures, and even possible prosecution where criminal o0ffence is established to have been committed.
Ends
leooderaomolo@yahoo.com
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From: Leo Odera Omolo
Date: Tue, Aug 18, 2009 at 11:16 AM
Subject: TOP MASENO UNIVERSITY SACCO OFFICIALS FIRED ON ALLEGATIONS OF MISAPPROPRIATION OF FUNDS