It has been suggested that Alfred Basweti, the external auditor whose signature was reportedly misused to authorise financial statements long after his purported death, may in fact be alive and maintaining a low profile. Basweti, who had previously worked with Omenya and Associates, the external auditing firm contracted to review KUSCCO’s accounts, is said to have retired from active practice. If it is confirmed that Basweti is still alive, as suggested by sources speaking to The Weekly Vision, the credibility of the PwC audit report may be called into question by the former KUSCCO management
Concerns have arisen over the authenticity of the forensic audit conducted by PricewaterhouseCoopers (PwC) into the financial affairs of the Kenya Union of Savings and Credit Cooperatives (KUSCCO). The audit, which uncovered alleged financial irregularities amounting to Ksh 13 billion, is now under scrutiny following recent revelations.
It has been suggested that Alfred Basweti, the external auditor whose signature was reportedly misused to authorize financial statements long after his purported death, may in fact be alive and maintaining a low profile. Basweti, who had previously worked with Omenya and Associates, the external auditing firm contracted to review KUSCCO’s accounts, is said to have retired from active practice.
PwC’s audit report claims that the 2022 financial statements were fraudulently approved using Basweti’s name, alleging that this act formed part of a broader scheme to manipulate financial records and obscure the misappropriation of funds. The report identifies several irregularities, including falsified financial statements, unauthorized bank withdrawals, and conflicts of interest in the awarding of contracts.
Former KUSCCO Managing Director, George Ototo; former Finance Manager, George Owino; and former Chairman, George Magutu, have been named in connection with the financial discrepancies. Magutu and Owino, alongside former employee Mercy Muthoni Njeru and lawyer Jackline Pauline Atieno Omolo, have already been arraigned in court on charges related to the alleged fraudulent acquisition of Ksh 82,826,000 in a land transaction.
Mr Ototo, who was sought in connection with the alleged theft of Ksh 82 million, appeared before a Nairobi court yesterday for plea-taking. Accompanied by his lawyer, Apollo Mboya, he appeared before Milimani Senior Principal Magistrate Dolphina Alego and denied the charges. The court ordered his remand until this morning, when a ruling on his bail application, along with that of his co-accused, is expected to be delivered.
If it is confirmed that Basweti is still alive, as suggested by sources speaking to The Weekly Vision, the credibility of the PwC audit report may be called into question by the former KUSCCO management. The claims regarding Basweti’s status reportedly stem from information provided by Kenneth Kimaiyo, a former internal auditor at KUSCCO. However, no publicly available records, such as obituaries or official death announcements, confirm Basweti’s passing. Some confidential sources with knowledge of the matter claim that he is still alive, although independent verification remains pending.
The forensic audit findings were submitted to Inspector General of Police Douglas Kanja by Cooperatives Cabinet Secretary Dr Wycliffe Oparanya, which led to the prosecution of some of the former KUSCCO executives. According to Dr Oparanya, the audit uncovered non-performing loans amounting to Ksh 3.7 billion, overstated profits totalling nearly Ksh 798 million over six years, irregular commissions worth Ksh 2.7 billion, and mismanagement of the central finance fund to the extent of Ksh 1.3 billion.
As investigations and legal proceedings continue, the unfolding developments surrounding the forensic audit and the status of key individuals are likely to shape the future of the case.
