Nineteen current and former Metropolitan National Sacco officials have appeared in court to face charges involving a KSh14.4 billion fraud and multiple violations of Kenyan Sacco laws concerning the society’s management from 2012 to 2021.
The charge sheet submitted to court indicates the defendants are principally charged with conspiracy to defraud under Section 317 of the Penal Code. Prosecutors assert that the accused conspired with additional individuals not present in court to misappropriate KSh14,497,677,664 from the Sacco throughout the nine-year period.
The defendants include Christopher Kahuno Karanja, Samuel Ndungu Muiruri, John Kimani Munyaka, James Kamau Ngugi, Patrick K. Kagwi, Francis Kamau Nganga, Benson Mwangi Nganga, Paul Kaberere, Geofrey Wamae, Duncan Chege, Francis Wachiuru Mbae, George Mwihia, Daniel Lee Kamau, Joseph Gachunga Mwaura, Boniface Muthama, Rosemary Chege, Edward Duncan, Lucy N. Kabiru and James M. Ngomo.
The prosecution additionally alleges that senior management improperly sanctioned the investment of KSh1.01 belonging to the Sacco in purchasing land in Kitengela, stating this constituted an investment in a non-core enterprise, violating the Co-operative Societies Act.
The accused also confront various charges under the Sacco Societies Act and associated regulations, such as failing to maintain the mandated 15 per cent liquidity ratio for members’ savings and short-term obligations.
Furthermore, prosecutors contend the officials neglected to establish and maintain a credit committee as stipulated in prudential regulations, thus weakening the Sacco’s credit risk management system.
The charge sheet additionally mentions inadequate maintenance of accounting books that accurately reflect the Sacco’s true financial standing, failure to appoint an internal auditor as legally required, and not ensuring member loans were adequately secured with sufficient collateral.
All defendants pleaded not guilty and were each granted KSh70,000 cash bail while awaiting further court proceedings.