Millions of shillings belonging members of the Bandari Savings and Credit Cooperatives (Sacco) could go to the drain after sacco officials pumped colossal amounts into the controversial purchase of parcel of land against the advisory of the internal legal team that could result to loss of millions of depositors’ savings.
At the same time, the sacco’s Central Management Committee (CMC) is under probe for the exaggerated expenditure of a perimeter wall earmarked to cost Sh25million but the figure was inflated to Sh207million, The Informer can authoritatively reveal.
Our investigations have also established that the Joseph Otieno Bee’s led embattled organisation pumped a whooping Sh280million towards the purchase of plot No.817 in Mombasa without conducting adequate due diligence on the status and true ownership of the said land against the professional recommendation of Bandari Sacco legal team.
The said land is under contestation and is currently being claimed by a third party a move that could portend the sacco spent deposits of more than 18000 members to a non-existent land.
When we contacted for comment, Otieno, the Bandari Sacco Chief Executive Officer did not respond to phone calls and short text messages.
“A number of officials have been profiled as persons of interest in two transactions. Our colleagues have also recorded statements with the police.” Our source intimated.
Among those cited as having facilitated the two controversial transactions include Otieno, Chairman Ken Sungu, Head of Finance Sylvia Ng’ang’a and Head of DBM Ken Nzai among others.
Investigators drawn from the Directorate of Criminal Investigations (DCI), specialised Anti-Banking Fraud Unit (BFIU) domiciled under the DCI and Financial Reporting Centre have adopted a multi-pronged approach into the matter.
The Assets Recovery Authority (ARA) has also been loped in to conduct asset tracing and recovery acquired through suspected proceeds of crime.
Official records show that Bandari Sacco is licensed DT (Deposit Taking) Sacco with an asset base of 11 Billion and membership of more than 18,000.
Last year, member of Bandari Sacco sued the institution’s management committee and directors, accusing them of deliberately running down the cooperative.
John Oucho sued the sacco’s chief executive officer and other members of the management committee in relation to a Sh207 million perimeter wall project.
The said the construction of the wall around a land owned by the sacco ought to have cost Sh25 million.
Construction of the wall commenced in 2016 and has not been completed to date with funds being used for over five years.
The petitioner had named Sacco Society Regulatory Authority (Sasra) as an interested party in the case.
“There is no value for the shareholders’ money in the acquisition of the parcel of land owing to the fact that the Sacco has not been able to get vacant possession other than using shareholders’ money,” Oucho said in his petition filed at the High Court in Mombasa.
And in January this year, High Court Judge Justice John Mativo dismissed the case since the petitioner for offending the doctrine of exhaustion of remedies and only approach the court as a last resort.
ought to have pursued the dispute resolution mechanism provided under the section 76 of the Co-operative Societies Act and only approach court by way of an appeal.
“Arising from the various issues discussed above, the authorities and provisions of the law cited, the determination of the issues herein above, the conclusion becomes irresistible that the petitioner ought to have pursued the dispute resolution mechanism provided under the section 76 of the Co-operative Societies Act and only approach this court by way of an appeal. Having so concluded, I find that this petition offends the doctrine of exhaustion of remedies. Accordingly, I hereby dismiss the petitioner’s petition dated 12th October 2021 with costs to the respondents.” Justice Mativo ruled in a judgement delivered January 25, 2022 reads in part.