Written by Emilly Chelagat 2012-08-07 15:54:00 Read 817 Times

The SACCO Society’s Regulatory Authority (SASRA) has suspended two directors and a senior manager of the Nandi Hekima SACCO society due to financial malpractices.

The three are suspected to have formed a ploy to loot the SACCO’s assets and are reported to have put strong legal and financial mechanisms in place to protect them from attempts and threats to remove them from office. 

Their eviction comes in the wake of speculations on the status of the sacco after claims that it had sunk into liquidity problems as it was surviving on heavy overdrafts from local banks to sustain it.

The evicted leaders have been in a three year wrangles with district cooperatives officers over unsound leadership and tasteless stewardship ever since they assumed office in a caretaker capacity.

Part of suspension letter which was indicated as confidential and copied to each of the three read:

“Take notice that, in the exercise of the powers conferred upon the Sacco Regulatory Authority by Section 51(C) of the Sacco Societies Act, 2008 as read together with Regulation 67 and 72 of the Sacco Societies Regulations, 2010, the sacco regulatory hereby directs your suspension from the service of the Nandi Hekima Sacco, in the position of member of board of directors of the Sacco from the effect of the date of service of this notice.”

 In the notice, the regulatory authority blamed the three for hiding valid information on the operations of Hekima Farmers Holdings which is trading with farmer’s money and whether it’s operating in the interests of farmers.

They are also blamed for incorporating a private liability to farmers by doctoring minutes and registering a company under directorship of Robert Seroney and John Korir who pursuit personal gains in the venture instead of taking care of interests of the Sacco.

 It is claimed that over Sh 40 million have been misappropriated the period the three have been in management.  

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