Trouble is brewing at the Kencon Sacco after internal audit queries were raised over Sh43million contract to construct access road for sacco’s housing project in Runda, The Informer has learnt.
Insiders say the one kilometer tender was initially projected at a cost Sh17million but was later inflated almost triple of the initial allocation.
Investigations by The Informer established the sacco top management chaired by national chairman Robley Ngoje is split right down the middle over disagreements over glaring lose of members money.
Kencom Sacco is largely owned by employees of Kenya Commercial Bank.
The contract was awarded to M/S Landmark General Works Limited irregularly.
Authenticity of documents used to secure the deal by the contracted firm have also been put into question after internal auditors discovered the documentation was forgery.
“We want the top management of the sacco to clear the air to members if their money has been embezzled through exaggerated contract value.” One of the insiders said.
The controversial access road is for the 113 four-bedroom maisonettes on 20 acres in Runda owned by Kencom sacco.
The project, which started in August 2013 and launched by KCB Chief Executive Officer Joshua Oigara and NBK CEO Wilfred Musau has been funded by National Bank’s Musharaka Construction Mortgage for about Sh2 billion.
Under the Islamic mortgage product, the developer provides land while the bank funds construction with profit being shared at negotiated ratios.
For the Runda project, National Bank settled for 14 per cent of annual profit from revenues until the loan is cleared.