The Ethics and Anti-Corruption Commission (EACC) has warned SACCO society players against corruption and unethical practices in the multi-billion sectors.
EACC Chairman, Archbishop (Rtd) Eliud Wabukala raised concerns over increased complaints related to abuse of office, embezzlement and misappropriations of funds, bribery, breach of trust and tax evasions in the Savings and Credit Cooperative Organisation (SACCO) sector. He said that EACC received and analysed 372 complaints, touching on SACCOs between the year 2013 to 2020.
Out of these, 47 per cent fell within the mandate of the Commission and were taken up for investigations, while 31 per cent of the complaints were on maladministration involving Saccos countrywide. Noting that there are about 180 licensed SACCOs in the Country controlling huge amounts of resources, EACC Chairperson said that it was prudent for the sector to fully embrace transparency and accountability.
“It is important to note that, 114 of these complaints, translating to 31 per cent of the total reports, were touching maladministration, which is a mandate of the regulator, SASRA. The reports also revealed that 91 per cent of the persons involved were in the low and middle ranks of the institutions,” said Wabukala.
The EACC Chairperson made the remarks during the official opening of a capacity building training of the Corruption Prevention Committee (CPC) and staff of the SACCO Societies Regulatory Authority (SASRA) in Mombasa early this week.
The Commission has entered into a Memorandum of Understanding (MoU) with the State Department for Cooperatives aimed at combating and preventing corruption in the cooperatives sector.
According to the SASRA Reports it is noteworthy that assets of Deposit-Taking SACCOs account for 5.7 per cent of the National Nominal Gross Domestic Product (GDP), and that SACCOs asset base has been increased by 12.4 per cent from Sh495 billion in 2018 to Sh556.7 billion in 2019.