Nineteen former officials of Metropolitan National Sacco have been charged over the alleged loss and mismanagement of more than Sh14.4 billion belonging to members.
Christopher Kahuno Karanja, John Kimani Munyaka, James Kamau Ngugi, Patrick K Kagwi, Francis Kamau Nganga, Benson Mwangi Nganga, Paul Kaberere, Geofrey Wamae, Duncan Chege, George Mwihia, Daniel Lee Kamau, Joseph Gachunga Mwaura, Boniface Muthama, Rosemary Chege, Edward Duncan and James M Ngomo appeared before Milimani Principal Magistrate Daisy Mutai and denied the charges against them.
They were charged alongside Samuel Ndungu Muiruri, Francis Wachiuru Mbae and Lucy N. Kabiru, who failed to appear in court, prompting the magistrate to issue warrants for their arrest.
The accused are facing multiple charges including conspiracy to defraud the Sacco of Sh14,497,677,664 between 2012 and 2021.
According to the charge sheet, the accused, who served as officials of the Sacco at various times, are alleged to have conspired to defraud the institution of billions of shillings over nearly a decade.
The prosecution further alleges that between 2014 and 2021, some of the officials unlawfully authorized the investment of Sh1.014 billion in the purchase of land in Kitengela, Machakos County, an investment said to fall outside the Sacco’s core business.
The accused also face charges of failing to report proper accounts reflecting the true state of the Sacco’s affairs, failing to maintain accurate books of accounts, failing to maintain the mandatory liquidity ratio, failing to establish a credit committee, failing to appoint an internal auditor, and failing to ensure loans issued to members were adequately secured.
During submissions on bond terms, Advocate Gordon Ogado, appearing for the victims, urged the court to consider the magnitude of the alleged losses and the trust placed in the accused by Sacco its members.
Ogado told the court that the figures contained in the charges were the product of investigations conducted by the Sacco Societies Regulatory Authority (SASRA) and were not arbitrary.
“I wish to state that this money is not something that my colleague, the prosecution, plucked from the air. It is after due diligence of investigations by SASRA that produced the results of a total amount of Sh14.4 billion having been otherwise appropriated for purposes not intended by the Sacco,” he said.
He added that a report prepared in April 2023 led to the issuance of notices requiring the officials to explain why they should not be surcharged for the losses.
Ogado further argued that while the accused had been described as retired and respectable members of society, the allegations before the court raised serious questions about their stewardship of members’ savings.
He told the court that thousands of members, largely teachers, had entrusted their savings to the institution after years of sacrifice and expected the officials to safeguard those funds.
“Your honour, the amount that you see here was from fellow teachers. This institution started as Kiambu Teachers Sacco and has since changed its name to Metropolitan National Sacco. For them to contribute to the tune of Sh14 billion, it must have been a very serious task. It means they basically sacrificed blood and sweat to save these sums of money that were entrusted to the Sacco,” Ogada submitted.
The complainants’ lawyer urged the court to impose bond and bail terms proportionate to the seriousness of the allegations, while leaving the final determination to the court’s discretion.
The court granted the accused a bond of Sh 200,000 each with an alternative cash bail of Sh 70,000 each.
The matter is coming up for pre trial on the 22nd June.
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