Teachers Leave Metropolitan Sacco .
Teachers Leave Metropolitan Sacco . Concerns Rise as Teachers Withdraw from Metropolitan Sacco .
Location and Concerns:
Metropolitan National Sacco Ltd operates from Chai House along Koinange Street in Nairobi. Lately, teachers have voiced concerns about fund deductions by the Teachers Service Commission (TSC) for Metropolitan Sacco without their consent. Approximately 11,310 teachers have ceased savings contributions due to doubts about the organization’s financial stability.
Membership Status:
As of March 31, 2024, only 2,401 teachers remained active members, while 11,130 ceased remitting funds. Nancy Macharia, TSC’s CEO, shared this information in response to the Senate’s Trade, Industrialization, and Tourism committee inquiry, prompted by complaints from Bungoma County teachers regarding compulsory deductions. Simultaneously, some members urge the release of the sacco’s financial reports to assess its viability.
Financial Mismanagement Allegations:
Metropolitan Sacco faced allegations of financial mismanagement, leading to the resignation of five senior managers in November 2022 and the appointment of a caretaker committee. An audit by the Commissioner of Co-operatives in April 2022 uncovered irregularities, including fictitious dividend payments, financial manipulation, and questionable lending practices.
Updated TSC List Of Counties Eligible For Paid Hardship Allowances
Audit Findings:
An investigation exposed suspicious transactions amounting to Sh49 million through M-Pesa by a single teller at the sacco’s Nakuru branch. Additionally, there was an overstatement of the institution’s premier loan facility by Sh7 billion, attributed to disbursals to nonexistent members. Discrepancies in asset valuation were noted, with reported cumulative assets of Sh28 billion conflicting external auditors’ findings of slightly above Sh14 billion. Moreover, members received false dividend payments sourced from their own savings rather than surplus reserves.
These revelations emphasize the urgent need for transparency and accountability within Metropolitan Sacco to rebuild trust among its members and stakeholders. Teachers are demanding a transparent investigation from investigation agencies to find out where the funds went. This has lead to a public outcry over safety of public servants savings to state entities.
