Detectives drawn from the Directorate of Criminal Investigations (DCI) on Thursday, February 13, arrested four suspects believed to be part of the multi-billion scandal at the Kenya Union of Savings and Credit Co-operatives (KUSCCO).
According to the DCI officers, three of the suspects, who now face several charges, including conspiracy to defraud, were arrested in different areas within Nairobi County, while the fourth suspect was cornered in Nyeri County.
Besides conspiracy to defraud, the suspects also face other charges, such as theft allegedly committed by the directors and officers of companies, which is contrary to Section 282 of the Penal Code, and making false documents.
Their arrest comes two days after the Inspector General of Police, Douglas Kanja, assured that the National Police Service (NPS) would leave no stone unturned in investigating the matter.
Kanja made the promise when he received the KUSCCO forensic report from the Cabinet Secretary for Cooperatives, Wycliffe Oparanya, on Tuesday, February 11.
“As investigations continue, NPS remains committed to ensuring a thorough and transparent investigation, uncovering the facts that will see all those involved are brought to book,” Kanja promised.
Meanwhile, the forensic audit report handed to the police boss exposed massive financial irregularities, gross mismanagement, and alleged criminal activities at the apex Saccos body.
Speaking during a meeting with IG Kanja, Oparanya stated that the audit report exposed non-performing loans totalling Ksh3.7 billion and overstated profits of nearly Ksh798 million over the last six years.
The audit report also highlighted irregular commissions amounting to Ksh2.7 billion and mismanagement of the central finance fund to the tune of Ksh1.3 billion.
However, despite the ongoing investigations, CS Opranya assured stakeholders that KUSCCO remained operational but pledged rigorous changes in the body’s functions.
Oparanya informed stakeholders that the role of KUSCCO would be narrowed to solely deal with advocacy programs and capacity building for SACCOs across the country.
Nonetheless, the CS further clarified that despite the imminent arrests, the probability of recovering all the money stolen from the umbrella body was slim.
Source: kENYANS.CO.KE