UN sacco. Courtesy.
The United Nations Deposit-Taking Savings and Credit Cooperative Society Ltd (UN Sacco) has announced plans for a forensic audit in response to mounting concerns over alleged financial mismanagement within the institution.
The decision follows increasing pressure from Sacco members, who have raised alarms over potential embezzlement of funds.
UN Sacco, which serves employees affiliated with the United Nations, has faced financial setbacks in recent years, including significant losses linked to the collapse of Chase Bank and the Kenya Union of Savings and Credit Cooperatives Limited (KUSCCO) scandal, where billions of shillings vanished.
Multiple SACCOs reported exposure following the KUSCCO crisis, with financial provisions totaling over Sh1.8 billion across several institutions.
these include Stima, Kimisitu, LSK, Mhasibu, Sheria, Balozi, Amref, Qona, and Kenpipe.
ALSO READ:Meet South Africa’s Retail Founder Of The Year 2024 – Foya Awards
However, UN Sacco has not disclosed its specific losses related to this incident. A forensic audit conducted by PricewaterhouseCoopers (PwC) previously revealed that fraudulent activities—including falsified financial statements and unauthorized transactions—resulted in losses of approximately Sh13.3 billion, leaving KUSCCO insolvent by Sh12.5 billion.
Another audit by Grant Thornton uncovered over Sh6 billion in losses from illegal withdrawals and unauthorized cash transfers.
These findings led to the dismissal of KUSCCO’s board and senior officials, with legal proceedings initiated to recover the lost funds and hold those responsible accountable.
In light of these financial challenges, UN Sacco members have demanded an extensive forensic investigation to identify any irregularities that may have led to the misappropriation of funds.
The upcoming 48th Annual General Meeting (AGM), set for March 22, will serve as a crucial platform for determining the scope of the audit.
According to the official AGM notice, two separate proposals have been submitted: one suggesting a five-year forensic audit, while the other calls for an eight-year review of the Sacco’s financial activities.
“To conduct a forensic audit covering a period of 5 years as submitted by member 372” and “To conduct a forensic audit covering a period of 8 years as submitted by member 379.”
The outcome of these proposals will be determined during the AGM.
Beyond the forensic audit, the AGM will address key financial matters, including the adoption of audited financial statements for the year ending December 31, 2024, the approval of a 10% interest on deposits and a 13% dividend on share capital, as well as budget approvals for 2025 and 2026.
Members will also deliberate on the election of new Board and Supervisory Committee members in line with Cooperative Societies Rules.
The forensic audit decision is expected to be a defining moment for UN Sacco as members push for greater transparency and accountability in financial management.
