•More than 3,000 Sacco members had sought the intervention of the Senate after failing to stop the intended auction of the building.
•Musco was established in 1988 by Moi University staff to empower themselves economically.
Image: MATHEWS NDANYI
Moi University Saving Credit Cooperative Society could resume operations in three months should the government implement the Senate’s resolution to stop its liquidation.
The Senate’s Trade and Tourism committee has asked the Sacco Societies Regulatory Authority, the Uasin Gishu government and Cooperative Bank to reinstate Sacco’s certificate of operation in 90 days.
“Cooperative of Kenya to present a comprehensive report on the way forward as regards the credit facility owed by Musco within 90 days,” the committee chaired by Wajir Senator Abdullahi Ali said in a report tabled in the senate.
The panel also asked the DCI to investigate malpractices and abuse of office by former Musco officials who ran down the once vibrant Sacco dating back to 2009.
“The DCI prosecute those found culpable of financial impropriety and report back to the Senate in 90 days,” Ali said as he tabled the report last Wednesday.
Further, the committee invited Auditor-General Nancy Gathungu to undertake a forensic audit of the liquidation process by Musco to determine any impropriety or otherwise and report to the Senate within 90 days.
It also instructed the Uasin Gishu government to provide the Senate, within 30 days, a comprehensive report detailing the initiative they intend to undertake following the reinstatement of certification of the Sacco operations.
The report should entail specifics on the financial commitment towards releasing Musco liabilities.
“The State Department for Cooperatives to present to the Senate, within 30 days, the National Co-operative Development Policy for concurrence and subsequent implementation,” the report reads in part.
In 2018, the government revoked the license of Musco and placed it under liquidation after accumulating huge debt.
A gazette notice published last year by the then Commissioner for Co-operative Development Mary Mungai cancelled the registration of the deposit-taking Sacco and appointed two liquidators to take custody for a year.
The Sacco owes Co-op Bank Sh500 million and its members have been fighting to save Musco Towers in Eldoret town from auctioneers.
More than 3,000 Sacco members had sought the intervention of the Senate after failing to stop the intended auction of the building.
Musco was established in 1988 by Moi University staff to empower themselves economically.
It drew membership from Moi Teaching and Referral Hospital and Masinde Muliro, Maasai Mara and Kabianga universities.
Nominated senator and senate deputy majority chief whip Farhiya Ali demanded a thorough probe by SASRA into the collapse of the Sacco.
“Then after that, bring people to book or even recover assets of the Musco from those individuals who are culpable. There are a lot of great institutions that fail in this country due to self-seeking people,” she said.
Senators Ledama Olekina (Narok) and Kipchumba Murkomen (Elgeyo Marakwet) took issue with SASRA for revoking the cooperation license of the once vibrant Sacco.
“The Committee of the Whole should summon the management of SASRA to come here and tell us what their interest is in bringing down one of the biggest university Saccos in this Republic,” Murkomen said.
“Why did SASRA do away with the license that they had handed over to Musco? There is a thin line between respecting the rule of law and operating the way you used to,” Olekina said.
Edited by Kiilu Damaris