16 Metropolitan Sacco officials charged over alleged Sh14.5 billion fraud

Sixteen officials associated with Metropolitan National Sacco have been charged in a Nairobi court with conspiracy to defraud the teachers' deposit-taking union of approximately Sh14.5 billion.

The accused, many of whom are former teachers, appeared before Milimani Magistrate Daisy Mutai and pleaded not guilty to nine criminal charges presented by the Office of the Director of Public Prosecutions (DPP). The charges span conspiracy to defraud, unlawful investment of Sacco funds, failure to maintain proper books of accounts, and neglecting to establish essential oversight committees like a credit committee and appoint an internal auditor.

Court documents indicate that the alleged conspiracy to defraud occurred between 2012 and 2021. The officials are accused of making various financial decisions that led to the loss of Sh14,497,677,664. This includes the alleged unlawful investment of about Sh1.014 billion in land acquisition in Kitengela, Kajiado County, between 2014 and 2021.

Prosecutors also claim the accused failed to maintain accurate financial records, ensure loans were secured, and establish required committees, exposing the Sacco to significant financial risk. Lawyer Gordon Ogado, representing victims, opposed lenient bond terms, citing credible investigative evidence and a 2023 report that established large-scale misuse of funds. He noted that Sacco members have been informed of potential surcharge proceedings.

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This money is not something plucked from the air. It is after due diligence by SASRA.