Page 34 - Issue 48_press_efile
P. 34
POLICY AND REGULATIONS
Proposed investigation unit to rein
in on plunderers
By Nicholas Maina
Millions of Kenyans who are deposit-taking SACCOs to Non-DT- formulation of the National Co-operative
members of various Co- SACCOs to ensure prudent business Policy and immediately operationalize
operative Societies need practices are followed. the proposed SSFIU within SASRA,” he
not worry about the safety of their added.
hard-earned deposits and savings as The SSFIU will be similar to the
Government moves to establish an Banking Fraud Investigation Unit (BFIU) Kenya Union of Savings and Credit
investigation unit to rein in on the administered by DCI. Cooperatives (KUSCCO) Managing
plunderers. Director George Ototo hailed the
BFIU receives and investigates fraud initiative.
The proposed SACCO Societies Fraud complaints from commercial banks, other
Investigation Unit (SSFIU) within the financial institutions and parastatals, “The idea is good as it will help in taming
SACCO Societies Regulatory Authority advise the financial industry on fraud confidence crisis facing the institution.
(SASRA) will have officers drawn from prevention and detection strategies and But Government should be cautious not
the latter and Directorate of Criminal sensitize the public on common types of to duplicate roles already in existence,”
Investigation (DCI). frauds. said Mr. Ototo.
Equally, the unit will have prosecutorial Others duties include liaising with other Mwaka confirmed that in its normal
powers, implying directors, managers law enforcement agencies on financial inspection surveillance in SACCOs
and other members of staff will be fraud prevention strategies, recovery of the agency identifies incidences of
prosecuted once implicated in economic stolen funds and assets with a view of funds misappropriation and abuse of
crimes. restituting the same to rightful owners management systems but due to lack of
through the legal system. prosecutorial powers cannot fast track
Further, suppliers who work with SACCOs the cases further.
will be indicted if found to have corrupted Speaking during the 97th Ushirika Day
systems in order to be awarded tenders celebrations, President Uhuru Kenyatta “The unit is expected to boost the
and other businesses. noted that the Co-operative movement confidence of depositors and ensure
has positively impacted the lives and cases of fraud are minimal in SACCOs,”
Cabinet has approved the idea and the livelihoods of millions of Kenyans since stated Mr. Mwaka.
initiative will be discussed further by the independence.
National Development Implementation SACCOs have their own auditing
Committee which is chaired by Dr. Fred However, the movement’s growth, departments that help in detecting
Matiang’i. President Uhuru said, is being strangled incidences of funds misappropriation
by numerous challenges such as poor and abuse of systems.
“We are optimistic the unit will be in governance and embezzlement of funds.
place in the next one year boosting our Early this year, the State Department
efforts to tame corruption among other The Head of State noted that for Co-operatives signed an agreement
messes facing SACCOs in the country,” National Government, after extensive with the Ethics and Anti-Corruption
says SASRA Chief Executive Officer John consultations with the Co-operatives Commission (EACC) to help in audit the
Mwaka. Sector, has initiated a number of lifestyle of SACCO managers and owners.
policy and regulatory measures which
Since its inception in 2008 SASRA are designed to create an enabling EACC Chairperson Eliud Wabukala
currently regulates 174 Deposit Taking environment for Co-operative then noted that evidence has revealed
SACCOs (DTS) spread across the country. enterprises to thrive. massive corruption and unethical
conduct within the Co-operative sector
Government has resolved to widen “I direct the Ministry of Industry, Trade which has resulted in the loss of millions
its regulation scope from the current and Co-operatives to fast-track the in members savings.
32| SACCO Star Magazine
