Detectives from the Directorate of Criminal Investigations(DCI) yesterday camped at Mombasa-based Bandari Sacco to question top officials following claims of misappropriation of funds.
Sources speaking to Kenya Insights confirm that DCI were following up on the claims made by a member John Oucho who had sued the managementcommittee and directors, accusing them of stealing and deliberately running down the cooperative.
In his petition lodged in the High Court, Oucho accuses the members of using an ongoing construction to pilfer money from the members’ Sacco.
The ongoing construction of a perimeter wall has invited scrutiny which has in turn raised questions over the source of funding.
In the long petition, Oucho accuses the officials of using an ongoing construction as an avenue of theft. The ongoing construction of a perimeter wall has invited scrutiny which has in turn raised questions over the source of the funding, something that DCI is investigating. “Respondent Bandari Sacco is in the process of acquiring and putting up a wall on a parcel of land comprising plot No817 on the pretext of investing shareholders money and they had engaged a claim of contractors for the same piece of work,” the petitioner says.
He alleges the decision by the officials was unfair, unilateral and without any consideration from the members, whose input should be key in such investments. On the other hand, the DCI is investigating claims over how the officials acquired the funds for the building, something that has been put at Sh280 million.
Further allegations from human rights bodies allege that the Sacco didn’t carry out due diligence before making the purchase of the land that cost it Sh280M.
Detectives who raided the premises of Bandari were unable to get statement from the chairman Ken Sungu who’s supposedly on a sick leave.
Bandaro Sacco recently partnered with ABC Bank to improve in service delivery.
Theft
Behind the glossy picture of a well-run, properly managed institution is a case of arm twisting, threat and hubris from the senior management of the organization. It is a case of political protection, underhand dealing and bribing police and anti-fraud investigators. A case of ‘you can do what you want’.
Bandari officials were previously caught in a Sh5M theft dealing a blow to the trust in investors.
In a typical Kenyan corruption protection, Bandari Sacco, chaired by Ken Sungu, a brother to former Kisumu MP Gor Sungu, a very close relation of Oburu Odinga (in-law) and by extension ODM leader Raila Odinga, the Sacco seems to enjoy a lot from the current political setup in the country. Sungu, a vocal MP fell on his own sword after he instigated the investigation on the death of former Kisumu Rural MP and Foreign Affairs Minister Robert Ouko Seda, only for the whole episode to boomerang on him, a matter was not taken lightly by residents of the his constituency, leading to the unceremonious exit from parliament after the 2007 General Elections.
Mr Ken Sungu.
It turned out that he was a close confidant of the murdered minister and he was playing cover-up for some murderous forces when he raised the matter in parliament after the 2002 General Elections that swept Mwai Kibaki to power. Rumours had it that he pocketed a tidy amount from some of the suspects. The beleaguered brother faces the same fate at the Sacco whose majority are 17,000 employees of the giant Kenya Ports Authority (KPA). He is a hunted and haunted man as reality catches up with him.
CEO Joseph Bee Otieno.
The CEO Joseph Bee Otieno has also been lined for questioning.
But, the whole episode does not end with the questioning. Several officials have changed their telephone numbers several times including the chairman to avoid DCI sleuths who have been circling awaiting arrest.
On the other hand, members of the Sacco are up in arms baying for the blood of the officials they accuse of many things that are not limited to the running of the institution. Information availed to us indicate that Sungu, his vice Johnson Kegoi and treasurer Lorna Riasi have gone missing in the recent past with telephone enquiries going unanswered.
Mr Joseph Kegoi.
Further information from our sources at Bandari Sacco indicate that the officials failed to show up in court after summons by Lady Justice Olga Sewe last month. According to our sources, a member John Oucho lodged a petition in the High Court accusing the officials of stealing from the Sacco and various allegations including fraudulent activities.
A major cover-up is currently ongoing and several members of the press have been approached to ‘manage’ the matter, with a leading PR agency owned by a respected journalist attached, though the senior scribe denied any involvement in the matter. Most media houses have been ‘contained’ not to run the story. Kenya Insights will keep you updated.
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