The KUSCCO fraud was not just a one-time theft but a well-organized scam that lasted for years. Former CEO George Ototo and former Chairperson Magutu ensured that the fraud continued by bribing different Cabinet Secretaries in charge of Cooperatives.
These officials, instead of stopping the theft, were compromised and allowed it to continue under their watch. Billions of shillings meant for cooperative societies and ordinary savers disappeared into the pockets of a few individuals while the government institutions responsible for oversight remained silent.
Cyprian Nyakundi exposed how Ototo and Magutu operated, revealing that every successive Cooperatives CS before Simon Chelugui was bribed to turn a blind eye.
According to him, these top officials worked in the shadows, ensuring that no investigations would be launched while KUSCCO funds were looted. But when they approached Chelugui, he refused to cooperate with them, and that was the beginning of their downfall.
His decision not to play along disrupted the system they had put in place for years, and this eventually led to the exposure of the fraud. Nyakundi has raised serious concerns about the previous CSs who handled the Cooperatives docket before Chelugui.
He argues that if the country is serious about getting to the bottom of the scandal, every one of those CSs must explain how much money they received from KUSCCO officials.
The Ethics and Anti-Corruption Commission (EACC) and the Asset Recovery Agency (ARA) have the power to track the movement of the stolen funds, but the question remains whether they will take action or let the scandal be buried like many others.
One of the most shocking claims in this saga is that a former Cooperatives CS was given Ksh. 200 million in cash as a bribe. The money was allegedly delivered personally by Ototo at a petrol station in Westlands.
This shows the level of impunity with which these corrupt individuals operated. If such large amounts could be handed over in broad daylight, it means the fraudsters were confident that nothing would happen to them. It also raises questions about the involvement of other powerful figures in government who may have protected them for years.
Nyakundi has also questioned the state of investigative journalism in Kenya. He argues that mainstream media has largely ignored this massive fraud, allowing the culprits to walk free while ordinary Kenyans suffer.
He believes that if journalists did their job properly, more details would emerge, and those responsible would be held accountable. But the silence from media houses suggests that powerful forces may be working behind the scenes to suppress the truth.
This scandal is just one of many in a country where corruption has become a way of life for top government officials. The fact that a single CS could walk away with Ksh. 200 million from just one transaction shows how deep the rot is. If previous CSs were also bribed, then the total amount lost in this scam could be in the billions.
The challenge now is whether authorities will act decisively or if the KUSCCO fraud will become just another forgotten case while those responsible continue enjoying their stolen wealth.
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