NAIROBI, Kenya, Feb 14 – Four suspects linked to the ongoing investigations into financial mismanagement at the Kenya Union of Savings and Credit Co-operatives (KUSCCO), where billions of shillings were embezzled, will remain in custody pending the determination of their bail terms on February 18.
The Directorate of Criminal Investigations (DCI) identified the four suspects as George Magutu Mwangi, Mercy Muthoni Njeru, George Ochola Owino, and Jackline Pauline Atieno Omolo.
According to the DCI, the suspects, arraigned at the Milimani Law Courts, are facing multiple charges, including conspiracy to defraud, contrary to Section 317 of the Penal Code, and stealing by directors or officers of companies, contrary to Section 282 of the Penal Code.
They are also accused of making a false document, contrary to Section 347(a), as read with Section 349 of the Penal Code.
The DCI further disclosed that the court has issued summonses for former KUSCCO Managing Director George Otieno Ototo, requiring him to appear for plea taking on the same day his co-accused await the determination of their bond terms.
Financial mismanagement
The investigative agency reaffirmed its commitment to ensuring that all individuals involved in the fraudulent scheme are brought to justice.
In November last year, Cooperatives Cabinet Secretary Wycliffe Oparanya reported a Sh12 billion loss at KUSCCO, attributing it to mismanagement.
A preliminary review of KUSCCO’s financial records, conducted after the dismissal of the union’s board earlier in the year by former Cabinet Secretary Simon Chelugui, revealed significant financial mismanagement.
Chelugui had cited deficiencies in resource management as the reason for the board’s removal.
Speaking while receiving a forensic audit report on KUSCCO, Oparanya stated that the findings exposed severe resource mismanagement, leading to the deficit.
“This report indicates that KUSCCO is insolvent, with a deficit of Sh12 billion. Resources were diverted into unauthorized areas, and oversight mechanisms were inadequate due to the lack of proper legal frameworks governing KUSCCO’s operations. The mismanagement of resources led to this situation,” Oparanya said.
