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{
"id": 1571815,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1571815/?format=api",
"text_counter": 36,
"type": "speech",
"speaker_name": "Ikolomani, ODM",
"speaker_title": "Hon. Bernard Shinali",
"speaker": null,
"content": "money was meant for the second payment of 2,892 coffee farmers for their 1,000,857 kilograms: Ksh24,021,425 for coffee and Ksh478,575 for salaries and wages. The money was transported to the Bungoma Union's Ushirika Bank Kimilili Branch, accompanied by two policemen and cooperative officials. On arrival at the Ushirika branch, robbers attacked them and stole the money, injuring the two policemen. It is noted that by then, the Farmers' Cooperative had no digital payment system. It is also noted that the cooperative did not have a Cash-On-Transit Insurance Cover. The matter was taken over by investigative agencies, who have not released their report to date. On specific questions by Hon. Majimbo Kalasinga, Member of Parliament for Kabuchai Constituency, the Member wanted a report on the guidelines on large withdrawals and financial security measures for SACCOs and the reasons why the management of Nakoyonjo SACCO society withdrew Ksh25,000,000 in cash at once instead of using electronic funds transfer or withdrawing the money in cash in small amounts for security reasons. The general policy on cash handling applies to all cooperatives in Kenya. These include cash-on-transit insurance covers, armed escort, availability of storage rooms, handling of storage room, password and keys, handling of system passwords, theft by staff covers, physical security where money will be stored as it's being dispensed, CCTV cameras, panic alarms, amongst others. The amount of money transported from the bank to the cooperative premises would normally be dictated by the limit given by the insurance cover. In this case, no insurance cover was in place and, therefore, officials were negligent in the way they handled this matter. The Hon. Member also wanted to know the circumstances surrounding the theft of Ksh25 million at the entrance of Ushirika Bank, the status of investigations into the incident, and steps being taken to recover the stolen funds. The circumstances surrounding the theft of Ksh25.5 million will be established once the Directorate of Criminal Investigations releases its report. Third, the Hon. Member wants clarification on whether cooperative societies are required to have insurance cover against theft, fraud, and other financial risks. Also, whether Nakoyonjo SACCO society was insured and that the stolen funds be indemnified. Cooperative Societies officials are required to put in place all preventive measures to mitigate the loss of members' funds and other properties. These include various classes of insurance, physical security in terms of watchmen, CCTV cameras, strong rooms, cash boxes, panic alarms, amongst others. It has been established that Nakoyonjo did not have such an insurance cover, which was negligent on the part of the cooperative officials. The lack of insurance cover exposes the farmers to total loss of their money. Thank you."
}