Former chairman of the struggling Kenya Union of Savings & Credit Co-operatives Ltd (Kuscco) George Magutu Mwangi was among four people who were arrested in an operation over claims of financial mismanagement at the agency.
He was arrested at his Githima village in Nyeri’s Mathira West Sub County to face charges.
Among the proposed charges include conspiracy to defraud, money laundering and stealing by directors.
He will also be charged with making false document and uttering a false document.
Also arrested were Jackline Pauline Atieno Omolo, George Ochola Owino, and Mercy Njeru.
The three, who were arrested in different areas within Nairobi County, now also face several charges including conspiracy to defraud, stealing by directors or officers of companies and making a false document
This comes after the Inspector General of Police Douglas Kanja assured that the National Police Service will leave no stone unturned in investigating the matter, as he received the KUSCCO forensic report from the Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya.
Police said they are looking for the other former officials of the umbrella Sacco.
A report by PricewaterhouseCoopers (PwC) audit detailed plunder and fraud at the Kuscco.
The PwC audit has recommended, among other things, that the Directorate of Criminal Investigations and the EACC investigate the dealings at Kuscco and punish those culpable.
It also advised that the Assets Recovery Agency recover the lost money.
Malfeasance at Kuscco includes the cooking of books, large scale theft by executives, bribery, unexplained bank withdrawals and conflict of interest through the issuance of contracts to firms owned by top managers and masking the schemes through manipulation of financial statements to report non-existent profits.
In the end, Sh13.3 billion has been lost, the umbrella body for saccos is insolvent to the tune of Sh12.5 billion and the Sh24.8 billion it received from 247 saccos.
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