By The Weekly Vision
The Afya Co-operative Savings and Credit Society is experiencing a severe financial crisis with confidential sources at the SACCO blaming a corrupt team of advisers surrounding the National Chairman Beatrice N. Mogire, CEO Peter N. Gisembe and Chief Internal Auditor and Risk Compliance Manager CPA James O. Ondiek for the crisis.
The sources have revealed that the Internal Auditor, Mr Ondiek, allegedly raided the accounts of the Front Office Savings Account, FOSA, Kisumu Branch, in a heist-like manner where millions of shillings are said to have disappeared into thin air. Things are made worse in the Kisumu branch due to the failure by the County Governments of Kisumu to remit member deductions amounting to Ksh. 800 million.
Sources familiar with the ongoings at Afya Sacco hinted that SASRA is considering suspending the board of directors led by Mrs Mogire and putting in place a caretaker management team to be headed by officers from SASRA. Recently, SACCO members were unable to access loans or withdraw their shares. This situation has caused major concerns among the society’s members, many of whom are health workers who rely on Afya Sacco for their financial needs.
Confidential reports suggest that Afya Sacco could be on the verge of collapse, which could put billions of shillings of members’ hard-earned money at risk. The society has been a trusted financial institution for many health workers, providing a safe place to save money and access loans; however, the current crisis has shaken this trust and left many members in a difficult situation.
One of the main issues facing Afya Sacco is liquidity, which means the SACCO cannot provide loans or allow members to withdraw their savings. Several factors may have contributed to Afya Sacco’s liquidity issues, one of them being mismanagement of funds, poor investment decisions, high levels of non-performing loans, and inadequate financial planning.
Additionally, there may be external factors at play, such as economic downturns or regulatory challenges, that have impacted negatively on society’s financial stability.
