Speaking when the Ethics and anti corruption commission partnered with saccos on Wednesday the EACC boss Twalib Mbarak has highlighted the frustrations associated with saccos.
“If saccos are mismanaged, the ripple effect is bad and we look forward to working with you people in the saccos,” he said.
He further noted that saccos have embraced nepotism, something he says is illegal.
“I know what is happening in saccos… half of the staff are relatives ….if we decide to come to you we can prefer charges on you…do not practice nepotism in saccos,” he said.
“Saccos are plagued by corruption and unethical practices. In the last five years, we have received 409 complaints touching on the cooperative sector… 16 are pending at various stages of investigation and others were taken up by relevant agencies.”
In 2018, financial institutions lost up to Sh21.37 billion in the last financial year through cybercrime bringing to the fore how online banking platforms have exposed banks and Savings and Credit Co-operative Societies.
“Losses are significant when compared with the vulnerabilities, and they are experienced across the board in the finance sector,” Joseph Mathenge, chief operating officer at Serianu IT consultants said.