The Anchor October 2011; Governance

'Awards' winning Sacco yet

to attain SASRA recognition

Masaku Teachers Sacco bags baffling fifth

'international award' as members crave for dividends

BAFFLING awards to the mismanaged Masaku Teachers Sacco notwithstanding, some members are rising the red flag, alleging impropriety in the management of the once vibrant sacco.

The awards have now made the sacco the town’s laughing stock with residents wondering why anyone would award an organization that does not provide any benefit to its members. As we went to press, the Sacco has bagged five international awards, the latest being two weeks old. The awards winning spree is a stunt that the sacco is using  as a gimmick to hoodwink teachers that all is well at Mwalimu House.

“Just what are they awarding?.” Asked Mrs Brenda Kioko a teacher of 22 years who withdrew from membership some six years ago?

This has been the big question. The last time an audit was done at the sacco,  debts running close to a billion  were discovered and the matter remains unresolved. Matters have not been helped by findings that the Sacco Societies Regulatory Authority(SASRA) has yet to license the teachers sacco.

This means that the award winning Sacco is currently operating a Front Office Service (FOSA) illegally. To demonstrate that Masaku Teachers Sacco is at the verge of dissolution unless something drastic happens, The Anchor has donated space elsewhere in this paper to inform its readers all Sacco societies registered by SASRA.

Even as as these shameless stunts continue angry members are rising the

 red flag over alleged deep rooted corruption that has led to non payment of dividends concerned.

“We are cheated that the sacco has received several Awards but according to our investigation,Mr Kyelenzi and his chairman are just beating about the bush but time has come to spill beans. Teachers have suffered for long and we appeal to our  able media houses to expose the rot since the sacco is on the blink of collapse once again”

The say the ministry of the co-operative development and marketing carried out an inquiry into the mal-prac-tices in the Masaku teachers Sacco Society Ltd.According to our investigations, but it seems the management has now compromised officials of the Co-operatives ministry. They allege the awards may have a link with corruption and the sacco is paying heavily for funding international trips for officials to receive the awards..

The accuse a top manager of buying himself two brand new cars, yet the society cana not pay dividends.

The teachers claim the loaning policy of first come first served is also grossly violated and loans are only available to a section of membership who are perceived to be loyal to the system. “The decline in the Sacco’s loaning performance has forced most of our members to seek loans from commer-cial banks and other financial in-sti-tutions to cushion them-selves from the harsh and hostile economic hardships facing almost everybody in Kenya today”, a letter in possession of The Anchor says.

The tough economic conditions that has  faced the society has seen the greatest decline in membership . Earlier, the mem-bership stood at over 11000 be-fore the society management  ran amok., The sacco lost over 2000 members through vol-un-tary withdrawals, retirement or natural attrition. This represents an 18.6% decline.

 

Contribution policy pegged to loaning

In some cases, free loans and advances were awarded to these members and some ended up receiving hundred of thousands of shillings. 

“When Kyelenzi  took over we were promised  that we would be able to obtain members loan details at the click of a button at the reception”, but that is a pipe dream, they say.

Members have  been carefully looking into the operations of the FOSA. We have been keenly studying the op-erations of the main office as well as those of the  branches. “The main office has been making a profit from its monthly activities but the branches, during the year under re-view recorded huge losses thus eating into the surplus netted at the head office.

Well connected committee members, those loyal to the systems have jumped into the band-wagon and like the rest pocketed what was allowed to them.