Nineteen former and current officials of a Sacco have been arraigned at the Milimani Law Courts over an alleged multi-billion shilling fraud scheme that investigators say led to the loss of more than Sh14 billion.
According to the Directorate of Criminal Investigations (DCI), the suspects were charged after thorough investigations by detectives from the DCI Headquarters Investigations Bureau into allegations of financial misconduct and embezzlement within the Sacco.
The probe was initiated when the Sacco Societies Regulatory Authority (SASRA) officially asked the DCI to investigate the suspected irregularities on the handling of members’ funds.
Detectives discovered what they call a well-organized network of fraud that was masterminded by Sacco officials over a period of years.
Investigators further allege that the officials doctored financial statements, made unauthorized transfers of members’ funds, disbursed loans unlawfully, as well as failed to account for billions of shillings entrusted to the institution.
The results of the probe are the two main fraudulent schemes.
The first scheme was the alleged fabrication of loan disbursement records between 2012 and 2021,bresulting in fictitious loans amounting to Sh13,483,350,322.
The other scheme involved the alleged unlawful creation and operation of an Investment Cooperative Society Limited, which investigators contend was a front through which the Sacco’s funds were embezzled.
The officials, through the scheme, are said to have misappropriated Sh750 766 304 under the guise of land acquisitions and investment in Kitengela.
Besides Christopher Kahuno, Samuel Ndungu, John Kimani, James Kamau, Patrick Kimando, Francis Kamau, Benson Mwangi, Paul Wathika, Geoffrey Kamau, Duncan Chege, Francis Wachiuru, George Mwihia, Daniel Lee, Joseph Gachunga, Boniface Muthama, Rosemary Njeri, Edward Duncan, Lucy Njambi and James Mutaiga are also among the accused.
Some of the charges against the defendants include conspiracy to commit fraud, theft by directors or officers, fraudulently falsifying accounts, obtaining credit by false pretences, failing to keep proper books of account, as well as being involved in non-core investment businesses without being statutory licensed.