The CEO of the Teachers Service Commission (TSC), Nancy Macharia, recently revealed alarming malpractices by certain Savings and Credit Cooperative Organizations (Saccos), particularly Kwetu Sacco, which is under the leadership of CEO Stanley Kyelenzi.
The Auditor General’s report has brought to light serious concerns about financial mismanagement within Kwetu Sacco, raising questions about transparency and accountability.
One of the key issues involves the misappropriation of Ksh 151,741.
This amount was mistakenly transferred to Kwetu Sacco’s Fosa Kwetu account, with a connection to Beatrice Obony Nyambane.
Despite several attempts by the TSC to recover the funds, Kwetu Sacco has failed to refund the amount or even acknowledge the transaction in its official financial records.
The failure to record this transaction suggests possible misconduct within Kwetu Sacco’s accounts department, with suspicions arising that the funds may have been deliberately withheld or misappropriated by someone within the organization.
The TSC’s efforts to resolve this issue have thus far been met with resistance. In response, TSC has announced plans to conduct a forensic audit of Kwetu Sacco.
This audit aims to uncover whether deceased members have continued to receive salaries due to potential systemic failures at the TSC, and to identify any inconsistencies related to payments for members who are retired, resigned, suspended, or interdicted.
This step is crucial for maintaining financial integrity and ensuring that public funds are not being siphoned off due to lapses in oversight.
Another aspect of concern is the failure of Kwetu Sacco’s leadership to communicate these issues with the TSC.
CEO Stanley Kyelenzi has been criticized for not taking proactive measures to inform the Commission about the misdirected funds and other potential discrepancies.
This lack of communication has fueled speculation about possible collusion between Kwetu Sacco’s payroll and accounts departments, raising concerns that payments meant for deceased or inactive members may be getting diverted and pocketed by individuals within the Sacco.
The exposure of these malpractices highlights the need for stricter oversight and financial scrutiny within Saccos.
The TSC is now focused on ensuring that such irregularities are investigated thoroughly, and that any funds misappropriated from its members are recovered.
With the forensic audit on the horizon, there is hope that more clarity will be provided regarding Kwetu Sacco’s internal operations, and that corrective measures will be taken to prevent further exploitation of public resources.
The broader implications of this case extend beyond just one Sacco.
It serves as a cautionary tale for other financial cooperatives operating in Kenya, emphasizing the importance of transparency, accountability, and the ethical management of funds.
It remains to be seen whether Kwetu Sacco and its leadership will face legal consequences for their actions, and whether the TSC will be able to reclaim the misappropriated funds for the benefit of its members.
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