{"id":103013,"date":"2024-11-22T10:03:00","date_gmt":"2024-11-22T10:03:00","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/index.php\/2024\/11\/22\/preliminary-review-puts-kuscco-losses-blamed-on-fraud-at-sh12bn\/"},"modified":"2024-11-22T10:03:00","modified_gmt":"2024-11-22T10:03:00","slug":"preliminary-review-puts-kuscco-losses-blamed-on-fraud-at-sh12bn","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/preliminary-review-puts-kuscco-losses-blamed-on-fraud-at-sh12bn\/","title":{"rendered":"Preliminary review puts KUSCCO losses blamed on fraud at Sh12bn"},"content":{"rendered":"<p><strong>NAIROBI, Kenya, Nov 21<\/strong> <strong>\u2013 Cooperatives Cabinet Secretary Wycliffe Oparanya has reported a Sh12 billion loss blamed on mismanagement of the Kenya Union of Savings and Credit Co-operatives Union (KUSCCO).<\/strong><\/p>\n<p>The findings, according to a preliminary review of KUSCCO\u2019s financial records, follow the dismissal of the union\u2019s board<strong> <\/strong>earlier in the year by former Cabinet Secretary Simon Chelugui.<\/p>\n<p>Chelugui had cited deficiencies in resource management.<\/p>\n<p>Speaking on Thursday while receiving a forensic report on KUSCCO, Oparanya stated that the findings highlighted significant mismanagement of resources, which resulted in the deficit.<\/p>\n<p>\u201cThis report indicates that KUSCCO is insolvent, with a deficit of Sh12 billion. Resources were diverted into unauthorized areas, and oversight mechanisms were inadequate due to the lack of proper legal frameworks governing KUSCCO\u2019s operations. The mismanagement of resources led to this situation,\u201d Oparanya said.<\/p>\n<p>The Cabinet Secretary added that relevant stakeholders will take action against those responsible for the resource mismanagement upon reviewing the full report.<\/p>\n<h2 class=\"wp-block-heading\">Manipulated records<\/h2>\n<p>Chelugui dismissed KUSCCO board of directors on May 6, 2024, for failing to steer the union effectively. He constituted an interim board comprising 15 members drawn from leaders of affiliate cooperatives to oversee the union\u2019s rehabilitation.<\/p>\n<p>Former CS Chelugui had accused the board of inappropriate practices, such as declaring bonuses, dividends, and interest payments despite the union incurring significant losses.<\/p>\n<p>Chelugui further pointed out that the dismissed board had been repeatedly mismanaging the union\u2019s resources, including maintaining unreliable and creatively manipulated financial records.<\/p>\n<p>\u201cEffective immediately, I, the Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, announce the dismissal of the current board of directors,\u201d Chelugui said at the time.<\/p>\n<p>\u201cIt [was] concluded that the board failed in its duty to steer the union effectively,\u201d he added.<\/p>\n<p>The government tasked the newly appointed interim board to oversee the transformation and rehabilitation of KUSCCO to restore financial stability and public trust in the institution.<\/p>","protected":false},"excerpt":{"rendered":"<p>NAIROBI, Kenya, Nov 21 \u2013 Cooperatives Cabinet Secretary Wycliffe Oparanya has reported a Sh12 billion loss blamed on mismanagement of the Kenya Union of Savings and Credit Co-operatives Union (KUSCCO). The findings, according to a preliminary review of KUSCCO\u2019s financial records, follow the dismissal of the union\u2019s board earlier in the year by former Cabinet [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-103013","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/103013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=103013"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/103013\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=103013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=103013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=103013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}