A section of members from giant Afya Co-operative Savings and Credit Society now want former CEO Felix Ndoi and former Treasurer and board member Silas Mutaki arrested for swindling members’ cash deposits.
The SACCO members claim the two have embezzled millions of shillings belonging to more than 40,000 members of one of the richest Saccos in the country.
Their claims have been confirmed by SACCO Societies Regulatory Authority (SASRA) in a report.
A detailed SASRA audit report in our possession shows that on 24th February 2021 Mr. Ndoi instructed the SACCO’s General Manager Banking Mr Maurice Mutuku to overdraw Ksh74.9m from PMO land branch project Fosa savings account.
No approvals were availed to support the transfer done.
The report also indicates that the former CEO transactions lacked supporting documentation with most withdrawals purported to have been used “Tittle process”
Despite numerous withdrawals by the former CEO in PMO Branch FOSA savings account there was no evidence availed to indicate authority and a power of the attorney to operate the PMO branch account by either PMO branch officials or SACCO’s board at the time.
“Lack of necessary approvals point to fraud by the former CEO and stealing by servant, a criminal act,” says the SASRA report.
The report further says that the withdrawals done by the former CEO at times involved huge sums of money in a day that exceeded maximum limit of ksh500, 000 multiple times in a day.
“For example on 5/9/2019 he withdrew a total of 3.8m, on 6/9/2019 he withdrew Ksh 3m. The mode of withdrawal raises suspicion considering the SACCO has other options of paying huge sums of money like cheques.” The report states.
At times the former CEO would withdraw money from the savings account above the teller limit of Ksh500, 000 per transaction.
For instance, on 29th July 2020 he withdrew Ksh900,000, ksh700,00 on 4th August 2020 and another Ksh900,000 on 20th August 2020.
A week later on 27 August 2020 Mr Silas Mutaki (the Former SACCO treasurer and board member) withdrew Ksh 600, 000 and Branch official Mr. Festus Gitonyo withdrawing Ksh300, 000.
The PMO land project has several irregularities pointing to a possible fraud that has led to members’ funds being diverted to suspicious land projects.
Specifically; the Mavoko land project was not initiated by PMO branch officials, instead SACCO funds were used to fund an irregular land project, the former CEO and Mr. Mutaki irregularly approved diversion of members funds to the project and despite land project costing a total Ksh 78.9m (as per total withdrawals done) a total of Ksh56.9m could not be accounted for.
According to sources, the former CEO Mr Ndoi and Mr Mutaki were reported to the Directorate of Criminal Investigations (DCI) and their files are also with the Director of Public Prosecutions (DPP).
Our investigations show that Mr. Mutaki and Mr Ndoi are part of the four admins of the “Afya Sacco Members NRB” whatsapp group.
It is also understood that the two- since they were thrown out of office have been using alternative media both print and online to incite members against the current AFYA SACCO top management to divert attention from the SACCO’S financial mess that took place between 2016 to 2021.