Founder of troubled Ekeza Sacco, Bishop David Kariuki, has told the state to involve him in the sale of his properties.
A state agency will sell some of his assets to recover the money he owes 53,000 members of the sacco.
The chairman, commonly known as Gakuyo, said he has to be involved to ensure that the only proprties to be sold are valued at the amount he has been charged to pay the members.
Speaking a day after the release of the sacco’s inquiry report by the state, Gakuyo said this will ensure that no one takes advantage of the situation to benefit themselves.
“I’ve always been ready to sell my properties so that I can refund the members’ savings and that’s the reason I advertised sale of some of my assets last month. However, I am pleading with the state to let me be part and parcel of the sale,” Gakuyo said.
Sh1.5bn irregular transfer
The audit report presented to members at Moi International Sports Center in Kasarani on Thursday last week indicated that Gakuyo owes the Sacco Sh1.05 billion.
It recommended some of his assets be sold to recover the money.
The report also indicated that Sh602 million is the amount members are seeking as refunds.
The report was prepared by a team appointed by Commissioner for Cooperatives Mary Mungai last December to audit the sacco. The report noted Gakuyo irregularly transferred Sh1.5 billion between 2015 and 2017.
The money was withdrawn by former CEO Gladys Wanjiku and the Sacco’s vice chairman James Kimani. They withdrew Sh88 million, Sh850 million and Sh625 million in 2015, 2016 and 201, respectively.
Last month, Gakuyo Real Estate, which is owned by the bishop, placed an advert in a local daily listing properties it wants to dispose of.
These include a residential house in Nyari estate near Village Market, Nairobi, a hotel in Juja town and a house on half anacre along the Thika-Garissa road near Makongeni estate.
Gakuyo is also selling a four-storey building along the Thika-Garissa road, 50 acres in Kilimambogo, Thika, 100 acres in Kabati, Murang’a, and a quarry in Kabati.
Of the Sh1.5 billion, Sh507 million was lent some Ekeza Sacco members who wanted to own homes under Chosen Green City, a housing project in Kabati, Murang’a county.
The project was being undertaken by the sacco’s sister company, Gakuyo Real Estate.
cheap homes
Gakuyo disputed the report’s findings.
“It’s not true that I illegally transferred money from the sacco account. Gakuyo Real Estate borrowed the money to buy land and build houses for our members at a cheaper cost,” said Gakuyo. He said the real estate has already repaid more than Sh400 million.
“However, I will not rest until all Ekeza Sacco members get their money back,” he said.
He also backed the audit of the sacco’s book of accounts to determine how much he owes the sacco in addition to the amount of money members also owe the sacco in of loans.
Gakuyo also welcomed the new interim officials elected on Thursday, saying he wished them the best.
The five members will be in office for 90 days.
Those kicked out of the management included Gakuyo, vice chairmn James Kimani, treasurer Mark Nyaga, secretary Ann Mbugua, board members Gladys Muthoni and Robert Njoroge.