A major scandal has erupted at the Unclaimed Financial Assets Authority (UFAA), revealing deep-rooted issues within the agency responsible for safeguarding and reuniting unclaimed assets with their rightful owners.
Allegations of financial discrepancies and questionable payouts have placed the agency’s top management, including CEO John Mwangi, under intense scrutiny.
Investigations have unveiled shocking discrepancies in UFAA’s financial records.
Out of Sh11.5 billion audited over the past five years, a staggering Sh10.5 billion remains unaccounted for.
This revelation has sparked widespread fears that UFAA is failing in its core mandate, raising serious concerns about the integrity and effectiveness of its operations.
The scandal has been further fueled by reports of questionable payments. Approximately Sh418 million has been paid to external auditors, while an additional Sh159 million has gone to alleged suppliers.
These expenditures, which lack clear justification, have raised significant questions about the agency’s financial governance and accountability.
Adding to the list of concerns are unexplained delays in transferring assets. Specifically, there have been significant hold-ups in the transfer of Sh1.2 billion units to the Nairobi Stock Exchange (NSE) and Sh466 million units to UFAA itself.
These delays not only undermine the agency’s credibility but also hint at possible financial mismanagement or, worse, fraudulent activities.
The agency’s top officials, including board chairman Francis Kigo Njenga and CEO John Mwangi, have acknowledged receipt of queries regarding these issues but have declined to provide any substantial responses.
This silence only adds to the growing suspicions and calls for greater transparency and accountability.
In response to these
issues, nominated Senator Gloria Orwoba has filed a petition before the Senate, demanding a thorough forensic audit of UFAA.
Orwoba is pushing for the corrupt UFAA bosses and their accomplices to be held accountable for their actions.
She has urged both the Senate and the National Assembly to launch an investigation into the billions of shillings’ worth of unclaimed assets that have allegedly been misappropriated.
Senator Orwoba’s petition highlights that Sh10 billion worth of assets are misappropriated annually, including Sh500 million in unaccounted auditing fees.
This figure represents a significant portion of the over Sh60 billion in unclaimed assets that UFAA was holding by 2023, according to official records.
The emerging scandal at UFAA has not only tarnished the agency’s reputation but also cast a shadow over its ability to protect and manage unclaimed assets.
The agency was established to ensure that assets belonging to deceased individuals and their next of kin are safeguarded and eventually reunited with their rightful owners.
However, the current allegations suggest a systemic failure to uphold this mandate, with billions of shillings potentially diverted away from their intended beneficiaries.
As the investigation progresses, there is an urgent need for transparency and accountability within UFAA.
The scandal has highlighted the importance of robust financial governance and the need for stringent oversight mechanisms to prevent such issues from recurring in the future.
The call for a forensic audit is a crucial step towards uncovering the truth and ensuring that those responsible for any misappropriation are brought to justice.
The situation at UFAA serves as a stark reminder of the potential for abuse within institutions tasked with managing significant financial assets.
It underscores the need for continuous vigilance, effective oversight, and a commitment to ethical practices to protect the interests of the public and maintain trust in public institutions.
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