The largest teachers’ savings and credit society in the country maybe headed for a fall following an unprecedented exodus of its members.
Documents of the giant Mwalimu sacco accessed by the Nation show that at least 100 teachers have ditched the society every month since January last year.
Those who have left said they were unhappy with the way their money was being managed, and cited a long list of ills gripping the society that they could no longer accommodate.
Top on the malpractices that they have cited include a lack of account statements, ‘exploitative’ interest rates on loans, wrongful deductions and lack of transparency in the management of their money. The documents further show that many members have continued servicing loans that they long cleared or their colleagues had guaranteed.
The central management committee of the sacco has also allegedly amended the by-laws of the society without consultation of the 50,000 members.
Although their payslips showed they were deducted monthly contributions, the teachers said they never got any statements to show their accounts at all, some for as long as 15 years.
This is against the by-laws of the society, a fact the chief executive officer, Mr Joshua Ojal, in an interview confirmed to be true, “and we are working to address the matter after several complaints were launched,” he said.
Documents within our possession show that there have been multiple entries in a single member’s account, indicating possible fraud, crafty or careless handling of transactions.
A further probe into the anomalies – by way of writing and personal visits by members to the sacco offices situated along Tom Mboya Street — is said to have gone unattended by the accounting officials.
Upon written request of a statement by a member, one is asked for Sh500, while some members claim to have been deducted money for loans (whether self or as guarantors) that they have already cleared.
“This grossly affects the net income and indeed leads to financial strain and embarrassment,” one of the teachers said in confidence.
Loans advanced to the teachers carry an 18 per cent interest rate, above what most commercial banks charge. This is against the objectives of the sacco, set up to allow them easy access to money and at a lower interest rates.
“This is in spite of the fact that members are being loaned their hard-earned savings,” said Mr Abraham Kawewa of Parklands Boys, who has been a member for over 10 years now.
Mr Kawewa spoke on behalf of the dissatisfied members who accompanied him to Nation offices.
Bitter at the management — the teachers largely drawn from secondary schools — are currently collecting signatures from the 50,000 members to petition the Government to intervene and avert a possible collapse.
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