Western Provincial Director of Cooperative Societies officer PDCO Nathan Mukhweso

The Bungoma Teachers and Investment Society BUTICH Management Board to be probed by the Kenya Ethics and Ant- Corruption Commission after it was disbanded by the Western Provincial Director of Cooperative Societies officer PDCO Nathan Mukhweso for alleged misappropriation of member funds in Liaison with KNUT officials.

Mukhweso said   a proper inquiry will be done which will also involve government auditors and the police to an earth the corrupt deals at BUTICOH.

The PDCO warned that even government officers alleged to be involved in the criminal activities should be apprehended as they don’t have any mandate to swindle shareholders money.

Mr. Mukweso said the former board of directors was conducting activities without the approval of the supreme authority of shareholder a situation that has made the society to incur losses.

He said the wrangles between the old board of managers and the former tenant Dr. Reginaldah Wanyonyi was not healthy to members as it was denying then an opportunity to earn dividends.

 In addition, he pointed out that after the former tenant was evicted another one was contracted without the knowledge of majority of the board members and all shareholders.

“According to the contract, we are told that it was signed by Pius Wabwile Wanjala as the board chairman, Catherine Wafula Wanjala as the Secretary and Mary Nanjala Barasa as Treasurer on behalf of teachers and Absolom Juma Mukusi and John Wanani Malulu as Directors of Mars East Africa Limited the new tenants who have origins in Naivasha,’’ he disclosed.

Basing on government reports, Mr. Mukhweso disclosed that the managers received three cheques of Sh. 400,000 each from the new tenant where the first cheaque   was deposited on FOSA account at the Bungoma Teachers Savings and Credit Sacco and later withdrawn and used by the managers without supporting documents.

Further, he indicated that the second cheque was banked on the same account and Sh.100, 000 later withdrawn, but the remaining Sh. 300,000 was blocked by the manager after learning of the fraudulent activities while the whereabouts of the third cheaque is still not clear.

He said the former management failed to adhere to the directive of the Minister for Cooperative societies Joseph Nyangah who wanted the management to engage the Local authorities Minister by then Deputy Prime Minister Musalia Mudavadi to have the Sh. 19 million arrears to Bungoma Municipality be reduced and subsequently written off so that the society can earn profit.

‘’It is sad that the directors were reluctant simply because they were plotting to have the Hotel be auctioned,’’ he said.

He said the government will not accept the investment to be sold by corrupt people through the back door saying his office is not going to leave any stone unturned at the society in the interest of justice.

Mukhweso told shareholders that the former management also borrowed money amounting SH. 650,000 from un known source   and that the way it was spent raises eyebrows.

An interim management was elected who will remain in office for 90 days paving way for elections of new directors.

Mr. Hesbon Kundu was elected chairman representing Bungoma South zone, Jimmy Masolo from Bungoma East as the Vice- chairman, Gladys Wekuke as Treasure with Edward Buranda, Margret Wanyonyi and Protus Barasa as board members.

The PDCO urged the interim managers to comply with the Anti- corruption, inquest team and the auditors so that necessary legal action can be taken on those found quality to have squandered public funds.

He said those found quality will be taken to the Cooperative Societies tribunal while asserting that the tribunal has powers to pursue to  a person’s property incase he/she is un able to re-pay.

Mukweso blamed a section of KNUT officials in Bungoma County for colluding with the BUTICOH managers to swindle shareholders money.

Other former mangers that were present during the meeting Mr. Gabriel Bulimo, Alice Wanyama who was a Vice chairman and Hadson Sasaka chairman of Supervisory stepped aside saying they were ready to be probed.