Nineteen Metropolitan National Sacco officials have been charged with conspiracy to defraud the Sacco over Sh 14 billion.
The officials are accused that on diverse dates between the year 2012 and 2021 at unknown place within the Republic of Kenya, with intent to defraud, jointly with others not before court, conspired to defraud Metropolitan National Sacco Sh 14,497,677,664.
The suspects include; Christopher Kahuno Karanja, Samuel Ndungu Muiruri, John Kimani Munyaka, James Kamau Ngugi, Patrick K. Kagwi, Francis Kamau Ng’ang’a, Benson Mwangi Ng’ang’a, Paul Kaberere, Geoffrey Wamae, Duncan Chege, Francis Wachiuri Mbae, George Mwihia, Daniel Lee Kamau, Joseph Gachunga Mwaura, Boniface Muthama, Rosemary Chege, Edward Duncan, Lucy N. Kabiru and James M. Ngomo.
The first 16 officials are also charged with investing funds in non-core business in 2014 by unlawfully authorizing the investment of Sh 1,014,327,342 belonging to the Sacco in buying land in Kitengela, which investment was not a core business of the society.
Other charges
Other charges include, failure to report proper accounts, failure to maintain accurate accounts, failure to maintain proper books of accounts showing a true and fair state of affairs of the Sacco’s financial position, failure to appoint an internal auditor as prescribed by the Saccos Societies Act and failure to ensure that all loans granted are fully secured by adequate collateral as required by law.
Some of the officials are also charged with failure to maintain 15 percent of its savings deposit and short-term liabilities in liquid assets and failure to establish a credit committee.
They all denied the charges before Principal Magistrate Daisy Mutai
The prosecution did not object to the release of the accused persons on bail. However, the court was asked to consider the amount involved while issuing bail/bond terms.
On the other hand, the defense lawyers asked the court to be lenient while issuing bail on grounds that their clients are teachers with a meager income.
It was the defense submission that the court should not be swayed by the amount indicated on the charge sheet.
In addition, the court also heard that most of them are elderly and sickly and would attend court at all times.
The victims’ side
However, the victim the victims’ lawyer Gordon Ogado told the court that the money in the charge sheet is not something that the prosecution, plucked from the air.
“It is after due diligence of investigations by SASRA that produced the results of a total amount of Sh 14.4 billion having been otherwise appropriated for purposes not intended by the Sacco,” Ogado submitted.
While asking the court to rely on the facts on the charge sheet in issuing bail/bond terms, Ogado stated that the prosecution and the state do not have any ill intent against the accused persons so that they would have fictitious figures as the basis of charging them in court.
“It is true that section 317 states it’s a misdemeanor. But your Honour, we wish that you may be guided firmly by the charge that has been stated there,” he added.
According to the lawyer, as much as the accused persons are said to be good people by their lawyers, their goodness is in question due to the issue of breach of trust in failing to perform their duties as appointed by the members of the Sacco who are the victims in this case.
“We are not condemning them, that’s the reason we are not denying them bail, but let the court consider that their character, their performance of the duties they were appointed to do is in question,” Ogado said.
The lawyer added that the amount that the amount was from fellow teachers.
Ogado further submitted that the Sacco is an institution that started as Kiambu Teachers Sacco and has since changed names at least twice so that today it is Metropolitan National Sacco.
“If they earn so little, for them to contribute to the tune of 14 billion, it must have been a very serious task for them. It means they have basically sacrificed blood and sweat for them to save these sums of money that are entrusted to the Sacco. And by extension the people standing before you were given the duty to safeguard the same. Your honour they failed to do so. We pray, your honour, that you give them proportionate terms of bond and bail even as the court may exercise its own discretion in the matter.”
The magistrate ruled that after considering the submissions from both parties, she considered a bond of Sh 200,000 plus one surety of a similar amount for each accused person to be reasonable.
Alternatively, each accused person can deposit a cash bail of Sh 70,000 and provide one contact person to secure their release pending the hearing and determination of the case.