Metropolitan National Sacco members have welcomed the high court ruling that stated that commissioner of cooperatives has the power to investigate any Sacco where misappropriation, theft mismanagement and breach of trust by management occur.
Judge Rosyln Abuli indicated that the commissioner of cooperative is permitted by law to carry out the investigation.
The ruling means the Commissioner of Cooperatives should proceed and surcharge the former management and recover monies lost in mismanagement of the Metropolitan Sacco.
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The court also struck out the judicial review by former directors indicating that the judicial application by the former board lacks merits.
The time for former management to challenge the audit report also lapsed, without them challenging it.
The Metropolitan National Sacco was established on February 10, 1977 as Kiambu Teachers Sacco and it was the best financial institutions in the 90s.
It attracted huge number of civil servants especially from the education sector. It is in 2016 that it started receiving challenges.
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The Sacco woes started way back in 2019, after members who are majorly teachers realized that they were unable to make any withdrawals from their savings accounts, and were also denied loan facilities despite having active accounts.
It also slid into financial trouble following a surge in bad loans that squeezed its liquidity and ability to meet members’ withdrawals.
By Brian Ndigo
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