• Havi maintains that LSK’s Sh66 million had been wired from its account mysteriously.
• But Wambua explained that the money was moved to fixed deposit accounts at KCB with the approval of LSK signatories.
The struggle for the control of the Law Society of Kenya continues as president Nelson Havi and CEO Mercy Wambua relentlessly trade accusations.
It is all about millions of shillings - Sh66,569,060 - which, Havi claims, was wired from the LSK account "mysteriously".
At a news conference on Monday, he pointed an accusing finger at Wambua, alleging that she wants to remain in office to cover up the loss and stonewall an audit.
But Wambua asserts that she has not refused to vacate the office. “Havi has refused to follow the law and the procedure to have me vacate office,” she told the Star in her office.
She cited the “... only council resolution that let me remain in office. When a new council resolution is made according to the procedures and the law available, I will leave [office in peace],” Wambua said.
Wambua was suspended in September for 30 days for, among others, alleged abuse of office.
However, nine LSK council members reinstated her against the wishes of Havi and two others.
At yesterday's presser, Havi was flanked by the three including vice-president Carolyne Kamende.
He maintained that the society’s Sh66 million had been wired from its account mysteriously.
“….the vice-president and I have been kept in the dark on major financial decisions. On my part, I have not understood and cannot explain to you how Sh66,569,060 was utilised between April 1 and July 1, 2020,” he said in a lengthy statement.
He claimed that some unnamed persons were keeping him and the vice-president out of the society’s affairs.
“The statements and documents relied upon in the explanation given had not despite persistent request by the vice-president and I, been supplied to us as at September 14 when the former secretary was suspended,” he said.
He considers Wambua to be a former secretary.
Section 26 of the LSK Act provides that the CEO can be removed from office if two-thirds of council members so resolve.
Havi claimed that Wambua had blocked the appointment of an independent auditor.
“There is no negotiation about it. The former secretary (Wambua) must leave office.”
He shrugged off the question whether he had reported the alleged fraud to the DCI for investigation, claiming that the government had detailed 20 police officers to guard Wambua.
Wambua showed the Star a copy of newsletter she forwarded to LSK members on November 13 as a response to the allegations of financial malfeasance at the entity.
She dismissed claims of Sh66 million loss, explaining that the money had been moved to fixed deposit accounts at KCB with the approval of LSK signatories.
The statement shows that Sh20 million was put to a fixed account for six months at a rate of eight per cent and Sh30 million for three months at a rate of eight per cent.
“This is the sum of Sh50 million that president Nelson Havi has been alleging mysteriously disappeared from the bank account,” the statement states.
The two accounts, Wambua said, had earned the society Sh514,191.75 and Sh685,598.05 interest respectively.
Wambua denied ever blocking the appointment of auditors, saying council members were yet to settle on an audit firm.
She accused Havi of unilaterally pushing for the appointment of a firm he was associated with.
“…the President recommended engagement of Parker Randall East Africa, a firm he disclosed he had previous engagement with when he acted for Tatu City,” Wambua's statement said.