The Sacco Societies Regulatory Authority (SASRA) is on the spot following a stalled KShs 200 Million project, despite KShs 25 Million allowances being issued to members, from the projects finances.
Auditor General has raised a red flag stating that the project failed to start off since February 2020 to date with no explanation. The AG also raised eyebrows on why a 10 member board was paid a total of KShs 25 Million, from February to date. The project was initiated to deploy a risk-based supervision system to regulate the sacco society members.
Records from the AG’s findings show that SASRA signed a contract with three firms for the supply, installation, configuration, customisation, testing, commissioning and maintenance of the risk-based supervision system. The agreement entailed an electronic document management system and hardware system at a contract sum of KShs206 million. “The commence date for the project is February 21, 2021 for a period of six months with an expected completion date of August 20, 20201” The AG’s report says.The report further showed that there was no evidence of such a project as stipulated by the SASRA documentation. The project period as documented, has also lapsed and the objectives might not be met according to the AG’s findings.
SASRA on the other hand noted that the project was to kick off just at the onset of COVID-19, when the regulations restricting several spheres of movement were announced, hence the delay, yet these were not captured by the AG. The system would be a game changer reducing risks in management of saccos countrywide which suffer so much mismanagement and subsequent loss of funds.