George Magutu
Courtesy Cnyakundih
The Kenya Union of Savings & Credit Co-operatives Ltd (KUSCCO) is charged with advocating issues affecting growth and development of SACCO’s in Kenya.
On the other hand, SACCO Societies Regulatory Authority (SASRA) is the government’s principal agency responsible for the supervision and regulation of SACCO Societies in Kenya
Therefore, SASRA’s mandate is to regulate, supervise and develop the SACCO industry through promotion of prudent practices to protect member’s interests, enhance access to financial services and foster financial stability.
Both the two entities have failed to protect Sacco members and have in more ways than one, engaged in fraudulent activities that undermine the growth of this financial sector.
We have covered this on the website, and here is one:
Hi Cyprian,
Do you know KUSCCO’s director by the name George Magutu? He still sits on the board of Fortis Sacco, Nyeri. Currently, Magutu and his other fraudulent are running left right and centre trying to bribe SASRA’s management to not reveal what recent audits unearthed.
That sacco is full of fraudulent board members and its just a matter of time before they bring it down.
As a person conversant with NewFortis SACCO, I’ll tell you this.
In 2020, the Unclaimed Financial Assets Authority (UFAA) was to do an audit of unclaimed assets at Newfortis, the staff were directed to hide the unclaimed funds, which was estimated to be worth hundreds of millions at the time.
By the time UFAA came, only Sh800k was left as unclaimed assets. The staff at new Fortis had been made to grieve leetet to appear like those people whose funds were owed communicated / instructed NewFortis to release the funds.
The forgery was so high that it also involved forging accounts statements through the core banking test environment. Some staff whistle blew this by writing a letter to SASRA and UFAA about this.
The chairman Mr John Githinji is a billionaire flaunting wealth in Nyeri, and so is the CEO, Mr John Githinji and the treasurer Mr George Magutu, from KUSCCO. The scandal at KUSCCO is merely a drop in the ocean compared to what the trio has done in NewFortis. Right now they are moving up and down with bags of cash trying to bribe officials at UFAA and SASRA and threatening anyone who refuses to take their bribe.
Some two guys at UFAA that had refused to play ball have lost their jobs. George Magutu is like their don. They have employed their relatives at NewFortis.
Their reach is powerful. For example, the honorary secretary of NewFortis is the CEC Education, Nyeri county so they are in good graces with the governor, Mr Kahiga, they even funded his campaigns, and if i’m right hufai kuwa na cheo kama hiyo ya CEC and still be a member of board.
NewFortis Sacco members don’t have faith on the Chairman and have always voted him out but he rigs himself in all the time. Everyone lives in fear of him and the treasurer and the CEO. All those who helped him forge unclaimed assets receipts were all fired and their names tarnished to make them not speak up. Some board members tried to remove the big three fraudulent executive board members but were removes, some died due to depression.
I’m telling you Nyakundi whatever George Magutu did at KUSCCO is a drop in the ocean. He has been treasurer of NewFortis longer than he has been in the board of KUSCCO.
Mr. Magutu, Githinji and Mathinji are murderous thieves. They threaten everybody even using close family members. They can put fake charges on one to spend time in prison.
They bought land and fraudulently and forced staff to buy them at inflated prices (three times the price). They allocated themselves huge chunks of the land and are also involved in mock projects like upgrading their T24 system, which they have fraudulently paid for three times through different consultants; mostly PKL consultants.
Monies meant for Unclaimed Financial Assets Authority (UFAA) was looted in a period of one week. Hundreds of millions vanished into thin air.
SASRA tied to do a second audit and nothing was adding up. Politicians are also bribed to keep silent. I swear they shall unearth a mega scandal bigger than KUSCCO, I audit is carried out and the truth is not hidden.
This is why the CEO has refused to retired despite being past retirement age. Chairman has to rig elections together with the treasurer.
This is the last avenue for helping people, the chairman always overdraws the account. Sometimes the account goes negative Sh3 million, then the next day it regularises. How? Keep in mind these billionaire directors are mere primary school teachers, yes, even George Magutu is a P1 teacher, but they own rental appartments in Parklands, Westlands, and slSyokimau. It doesn’t add up.
Long story short, there’s looting of immense proportions huko at NewFortis and especially in executive board of directors.
My only prayer is that a serious and incompromisable audit is done, followed by a lifestyle audit of those directors. Magutu has already has been found fraudulent by KUSCCO, what makes them think that he is innocent at NewFortis?
If SASRA and UFAA are, for sure not corrupt, let them investigate the three and truly speak the truth about their fraudulent ways. Many people are hurting and annoyed by the trios behavior, but scared to speak.
They use the Sacco as their piggy bank, and always issues instructions on what and where to put money on a daily basis. This fraudulent behavior is now being covered as normal staff cannot access or see accounts of board members as the CEO instructed the It team to make their accounts inaccessible to staff.
Remember, three men Mr Nyakundi, namely George Magutu, John Githinji and John Mathinji have made NewFortis sacco their personal piggy bank.
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