Officials of Kenya Bankers Sacco Society Ltd Sacco have deprived members of millions of shillings and defrauded the Kenya Revenue Authority, according to a report prepared by the Sacco Society Regulatory Authority.
Sasra conducted an onsite inspection exercise on the operations of Kenya Bankers Sacco Society Ltd. Sasra has powers to conduct inspections on a Sacco society at any time. The inspection opened a can of worms at the Sacco where rot was unearthed.
Sasra observed that there were serious lapses in the Sacco’s credit management practices that have exposed it to a high credit risk, thereby threatening its sustainability.
The lapses include failure to adhere to loan approval processes, members of the credit committee approving loans beyond their recommended limits as per the credit policy, and loans being approved without the requisite documentation such as members’ latest payslips being some of the key questions raised by the regulatory body.
The management of the Sacco also involved itself in noncore business activities mainly real estate and land projects, which have had a huge negative impact on the Sacco’s financial position and consequently led to reduced activity in the Sacco’s core business of advancing credit to its members.
Impaired investments include Shaba Housing Sh389, 537,794 and land projects 68,568,877, totaling to 458 106,671 which the authority says their recoverable amount is lower than their carrying amount and thus must be written off the books of the Sacco.
They say the Sacco maintained an executive committee of chairman, treasurer and secretary who were operational directors involved in day-to-day running of the Sacco such as in the approval of payment vouchers contrary to Regulation 59 (3) which prescribes that the board of directors shall consist of elected non-executive members involved in general strategy and oversight.
Vincent Chisaka is the chairman, Gertrude Wabunga his vice, Dennis Owino secretary, George Namwoso treasurer, Sally Oimbo member together with Vincent Mutambo, Ahmed Omar, Paul Kinge and Elijah Dede.
Due to underhand deals, the Sacco supervisory committee chaired by Maureen Kivava, RensonChikololo, secretary, and John Mwangi, member, has been compromised and is on the management payroll and cannot raise any issues.
The report says the Sacco board and management have not been charging tax on the board allowances but have instead been irregularly paying the applicable tax obligations using members’ funds, thus passing the tax burden of individual directors to members. They also pay excess allowances to directors.
The Sacco’s board and management has also been irregularly deducting Sh2000 per sitting from the taxable amount per director disguising it as allowable per diem deductions in a well calculated move to reduce the tax payable and deny the government tax revenue.
The Sacco purchased land number 12715/143 from Mildred Mbuya Muli on November 26 2012 for a sum of Sh50 million plus additional costs amounting to Sh2.6million. The Sacco later resold the same piece of land to NK Brothers for Sh70 million as evidenced by a sale agreement dated January 14 2016.
On February 1 2016 Sh7 million (cheque no 00849) being deposit of purchase price for the aforementioned piece of land, was deposited in National Bank (Kenya Bankers Investment Co-operative Account number 01042087888700 Amanah). Hence, a total of Sh69,065,050 was received by the investment company towards the purchase of the land.
A review of the investment company bank account established that the investments company paid the Sacco Sh60 million in regards to the sale of the land as follows: May 6 2016, Sh35 million was transferred to Prism Investment Ltd to finance the completion of the Shaba project, on June 10 2016, Sh25million was transferred to the Sacco’s bank account at Citi Bank,
However, there was no evidence showing that the balance of Sh9million owing from the sale of the land was ever received by the Sacco from Kenya Bankers Investment Co-operative, its sister company charged with investments though run by the same directors and managers of the Sacco notwithstanding.
The Sacco also engaged Packlines System Limited in 2015 to provide and implement a mobile banking software and again later in 2016, to facilitate an update of their core system without advertising the tender which runs into millions of shillings.
The contract is also open which ended up as its directors cannot be traced at the government registration offices. The Sacco lost Sh300, 000 when its systems were hacked,
The report recommends that all the payments made to the service provider over and above the prescribed rates be immediately recovered.
It also recommends that extra money paid to the directors and managers be recovered from the salaries and allowances and that tax be remitted to the KRA.
It also further advocates that branches categorised as Nyanza, Western, South Rift Nairobi, Coast, Central, Eldoret, Kitale and Meru which consumed Sh29,504,689 million in branch AGM expenditures and Sh11,084,490 in allowances between 2012 and 2018 be dissolved as they were serving no purpose.
The Sasra inspectors who prepared the report were Daniel Kimoli , Stephen Michubu , Lorna Olala, Nelly Kulei and Daniel Mwatu.
MP Wamalwa joins DP Ruto camp ahead of 2022 – Weekly Citizen
What goes around comes around, this saying amply goes with the Kiminini MP Chris Wamalwa who after a long spell of silence broke his silence and spilled the beans when he revealed what he dreamt William Ruto becoming Kenya’s head of state in 2022.
Speaking after dodging the Building Initiatives rallies that ended prematurely following the outbreak of the corona virus in the country, lest he was branded as anti-Ruto, the Ford-Kenya FK legislator talked of how the DP had been shortchanged by Uhuru Kenyatta to succeed him in 2022 but said should polls be held today Ruto would become Kenya’s president.
Notwithstanding the fact that his party leader and Bungoma senator Moses Wetang’ula had also declared for the pesidency in the coming general election, Wamalwa seemed to be deviating from FK’s course for the presidency and wishing to run alongside the DP in his quest for the country’s top political office as he himself goes for the Trans Nzoia governor’s race in 2022.
As the Kiminini lawmaker synchronises ways of succeeding Governor Patrick Khaemba also allied to FK, Sabaot politicians made a retreat and presented their community memo to the BBI at KICC in Nairobi before it wound up setting a confrontational centre with supporters of the DP opposed to BBI.
All community MPs with the exception of the member for Mt Elgon Fred Kapondi witnessed the handing over ceremony with representative from the elders, youth, eomen and professionals calling for an autonomous county and compensation for community land taken away from them.
Among the leading key Sabaot leaders who graced the function were Senators Mike Mbito and Mercy Cheben, Wilberforce Kisiero and Joseph Kimkung, PS Harry Kimtai, former senator Henry Ole Ndiema and senior county administrators John Kinjo and Geoffrey Targon.
The memo was a culmination of the community’s crusade for the BBI which was first led by the spokesman former Kitale deputy mayor Pius Kauka to Bukhungu stadium in Kakamega. Kapondi who was granted a direct ODM nomination ticket from prison accused of war-like activities in 2007, courtesy of party leader Raila Odinga had kept off the BBI rallies before they were called off.
But in a quick response on behalf of the community, Mbito pointed out that their delegation to BBI did not mean the community had changed their political stand but they were only responding to the wishes of the people who had wanted the inclusion of historical land injustices addressed.
The Trans-Nzoia senator explained that the stand of the Sabaot people will be known at the election time adding that it is the people themselves who know where their shoe inches them.
According to the Sabaot Memo, it is only the Sabaot and Kuria communities that do not have their own counties. It adds that Mt Elgon, Saboti and Endebess constituencies with a population of 420,000 should be merged to form Mt Elgon county. He says some of the Kenyan communities have more than five counties, rendering the Sabaot as only taxpayers due to prolonged marginalisation.
The angling of Chris Wamalwa towards DP Ruto opens yet another fresh pandora’s box for Trans-Nzoia county’s politics ahead of the 2022 polls with tree allies of the DP Kakai Bisau, Dr Abraham Sing’oei and Woman Rep Janet Nangabo intending to take on the Kiminini MP for the governor’s race.
This put the DP in a precarious position as he runs for the Presidency considering also that Dr Mike Mbito is also shifting from the senatorial seat towards the gubernatorial office. The DP would not want losing a single vote in the county in his race and his choice for the governor would play a key role towards his success.
The governor’s race will be the most keenly watched in the county as it has attracted big fish such as the Devolution cabinet secretary Eugene Wamalwa who is seemingly leading an anti-Ruto brigade for most of the seats including Joshua Kuttuny, the MP for Cherangany.
Though the list of aspirants is long including Ben Wanjala, Patrick Kamwessar, Martin Ngomat, Boniface Wanyonyi, Paul Moiben and Moses Khaoya, the one to be followed much will whirl around the Eugene-Kuttuny axis.
Each politician is calling for leadership devoid of Khaemba’s style of aloofness, inaccessibity, social discrimination and family control. The aspirants are yearning for a governor who can share a table with fellow elected leaders to chart the way forward other than a decision of a few individuals, no matter the tribe.
PS Kibicho hand in Waiguru impeachment threat – Weekly Citizen
Powerful principal secretary Karanja Kibicho’s hand is seen in a recent move by Kirinyaga county assembly to pass a resolution demanding the release of the title deed to Kemri land for construction of teaching, research and referral medical centre.
Kibicho has been using the Kemri land saga to engage Governor Anne Waiguru as he lays ground to go for governorship 2022.
At the same time, MCAs have demanded the county releases Sh70 million they allocated for the bursary kitty before the end of this financial year.
Through majority leader, Kamau Murango, the MCAs claimed the 100-acre land wrangling should be resolved immediately to enable Kemri proceed with the expansion project.
“We are giving Governor Waiguru one week to hand over the title deed unconditionally or else we will set off a motion to impeach her,” Murango said.
Murango said it is no longer business as usual and added that though as a leader of the majority he is supposed to support the county government agenda, the issue of Kemri land must be resolved for the project to continue.
He said they were disappointed as the county assembly to learn that the county government through their lawyer recently frustrated the efforts of a petitioner who filed a notice to withdraw a case that stopped the progress of the Kemri project in Mwea.
He said the governor’s reason that she cannot release the title deed without an agreement with Kemri is not reason enough to stall the project.
Mutithi ward MCA Baptista Kanga in whose ward the centre is being put up, said the county government needed the use of force to make them hand over the title deed to Kemri.
Kanga said during his recent visit to Kirinyaga, Uhuru Kenyatta had directed the governor to have the issue of Kemri land resolved with immediate effect to save the project from further delays.
The county government made some undisclosed demands for Kemri before the institution could be issued with the title deed that led to the stalling of the project.
Kemri had even spent Sh60 million in erecting a perimeter wall on the 100-acre land after the then area governor Joseph Ndathi showed its senior officials the extent of the land.
The ultra-modern teaching, research and referral medical centre was intended to serve Central, Eastern and North Eastern region residents with specialised treatment once the facility is in place.
The centre when operational will comprise a postgraduate university research centre, a hospital and state-of-the art diagnostic laboratory.
Records from Kemri have it that the university wing will be admitting post-graduate students in various disciplines and will also have room for doctorate (PhD) students.
Kanga said the hospital will be among the Vision 2030 flagship projects and added that the residents within the expansive catchment area have every reason to be happy.
The ward representative also said the presence of Kemri in the region and with a project of such magnitude would spur social economic growth for the good of the people.
Meanwhile, a petitioner has claimed in court that his life is in danger after he submitted an application to withdraw a case he had filled against the establishment of the health facility in Mwea.
Leonard Kuria, shocked the Kerugoya Environment and Land Court when he stood up and claimed he was not sure of his safety between when the matter will come up for ruling of his application and further direction.
The matter which was coming for hearing took the new dimension when the lawyer, Paul Nyamodi, defending the Kirinyaga county government in the case, informed the court that he had not been served with the said application by the petitioner.
Equally, the Kemri lawyer Wilfred Lusi said he had learnt of the said application after being served by the petitioner when he arrived in the court that morning.
Nyamodi, while opposing the application, informed the court he was opposed to it since it was not a civil but a constitutional one under the Mutunga rules.
Lusi on the other hand urged the court to discharge the conservatory orders earlier on the applicant had been granted in order to allow a contractor back to the site of the Sh15 billion projects situated on a 100 acre land at Wamumu village.
Citam on fire as new bishop Odede designated – Weekly Citizen
A section of participants at Christ is the Answer Ministries annual delegates conference to ratify bishop designate are planning to stop the nomination of Rev Calisto Odede approval.
However, Weekly Citizen has information to the effect that the AGM planned to be held on April 25 this year, hangs in the balance due to corona virus outbreak that has seen the state stop public gatherings throughout the country.
Those opposed to the nomination wanted at first to pursue the legal angle but eventually decided to involve the delegates. The argument being that if the AGM had not ratified the nomination as it was the final decision maker, Odede nomination was still in doubt and cannot be challenged in court. Citam succession war revolved around who is to take over from Bishop David Oginde.
The selection board that picked Bishop Odede is the Fellowship of Elders and the Deacon board. They voted on February 14 for 10 candidates who were out to head the church headquartered at Valley Road, Nairobi.
Sources well versed with the happenings during the voting reveal that intense lobbying, bribery and tribalism marred the process that became ungodly. The head of the church is said to control billions of shillings raised among members and from donors.
The church also has economic generating projects that bring in billions of shillings. Citam is one of the richest churches in Kenya with branches in Nairobi, Kisumu, Thika, Mombasa, Mlolongo just to name but a few.
Citam constitution states that the bishop to head the church must have a christian testimony and must have served as a senior pastor or equivalent for five years or incharge as a deputy bishop.
In total, of 15 pastors of the church that met the requirement applied, however, the number was reduced to only 10 applicants with five being knocked out for unknown reasons.
Insiders say that the manner in which the five were locked out was aimed at balancing regional voting pattern in favour of one candidate. Citam has 32 senior pastors according to documents seen by Weekly Citizen.
Of the 32, only 15 were shortlisted with the final list narrowing to 10 senior pastors.
Fellowship of elders has 24 members with the deacon board 12 members that totals to 37 members.
Our source revealed, going by the composition of the 37 members, one region is favoured in controlling the church activities. Or further, two regions can strike a working balance to anoint who is who to occupy the position of presiding bishop.
A close scrutiny of Citam constitution reveals that the council of elders has the final word on the appointment of the presiding bishop.
Sources say using his influence; the outgoing Bishop Oginde favoured Odede for reasons best known to him.
Odede is seen as an outsider as he has been a senior pastor at Nairobi Baptist Church. He left Citam Valley Road in November 2014 and joined the Baptist Church.
The legal complication in his nomination is that the constitution states one has to be a senior pastor at Citam to qualify. Of those invited for interviews, all the nine apart from Odede, were senior pastors at Citam.
From the 10, the list was narrowed to three candidates; Weekly Citizen has information that a number of church followers have dismissed talks that Odede joined the Baptist Church following a mutual understanding between the two ministries.
In fact it is said that a section of church elders were against Odede’s defection and even prevailed upon him to stay but he refused.
By then, emerging facts are that Odede who was under investigations and wanted a safe landing ground at Baptist church.
Weekly Citizen has established that claims that Odede was lured to join Baptist church as senior pastor to solve a crisis the church was experiencing at the time has not been received well by Baptist Church followers.
He was at Baptist for five and a half years. Odede was a senior pastor at Citam Woodley, Valley Road and Karen before heading to Baptist.
It is said that Bishop Oginde did not want his current deputy Bishop Karita Mbagara to succeed him.
We could not establish if immediate former deputy bishop Kennedy Kimiywe was among those shortlisted. Kimiywe and Mbagara were seen as front runners.
Followers are asking why Mbagara who has been in office and served as Oginde’s deputy in what was seen as succession gameplan as many expected was sidelined. They are reading regional power games in the deal.
Names of Charles Obara, Karen Assembly senior pastor and overseer Southern Region together with that of Anaka Mugenyi, Western region overseer, were also mentioned as possible successors of Oginde.
For now, those against Odede want the MoU between Citam and Baptist church made public to show the contents.
Oginde took over from Bishop Boniface Adoyo in 2010. Adoyo was the church’s first African head and is credited for not influencing his successor.
In fact, most of the projects Oginde oversaw were the planned by Adoyo who took over from Bishop Dennis White.
Faithful say a move by Citam to pray for 40 days under Citam leadership transition banner to avoid tribalism, greed, power obsession, selfish and personal interests in the picking of the head as well as opposition to new bishop nominated was suspicious.
Last year, Oginde was accused of initiating pastoral transfers and frustrating young pastors. To weaken Bishop Kimiywe, during the AGM meetings, he pushed creation of deputy bishops.
The Odede nomination announcement read: “Rev Calisto Odede is Citam bishop designate after going through a successful selection process. Rev Odede served Citam ministry for a long time in various capacities.”
Weekly Citizen has information on the final three list, it had Odede, and Ken Isige the man in charge of Citam Thika Road and of course Obara. Kimiywe and Mbagara’s names were dropped along the way.
For now, Odede backers are out to influence the AGM of delegates to approve his nomination to avoid embarrassment.
Odede is 57 years and is to serve for two terms five years each meaning he will retire at 67, 2029.
ADC has 1200 delegates drawn from 24 local assemblies. Four assemblies are international.
Sources say, due to the heat generated, the delegates will prefer to vote unlike before when they were asked to raise comments on bishop designate.
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