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{
    "id": 973058,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/973058/?format=api",
    "text_counter": 15,
    "type": "speech",
    "speaker_name": "Sen. (Prof.) Kamar",
    "speaker_title": "",
    "speaker": {
        "id": 33,
        "legal_name": "Margaret Jepkoech Kamar",
        "slug": "margaret-kamar"
    },
    "content": "(6) That MUSCO received an operating license in 2014 and got its renewal later from the Sacco Societies Regulatory Authority (SASRA) to operate as a deposit taking business. (7) That the establishment of SASRA as a strong regulatory framework instilled confidence that it would ensure members’ funds were very secure. (8) Further, that following the completion of the MUSCO Towers building, the Sacco began to experience liquidity problems. (9) That the problems were compounded by failure of Moi University to remit its members’ deductions from June 2015 to the time when the license was revoked. (10) SASRA sought to revoke the deposit taking license regardless of measures MUSCO outlined to get the Sacco back on its feet when the University had failed to remit the deductions from the members. (11) The Senate should note that SASRA issued a notice of intention on the 7th of March, 2018 to revoke the license pursuant to Section 27(1) of the Sacco Societies Act, requiring the MUSCO Board to show sufficient cause that would stop the revocation of the license. (12) Further that on the 27th March, 2018 that is 14 days later MUSCO gave their 2017 audited accounts which showed that it was recovering given its reducing deficit in 2017 compared to 2016 which allowed the Sacco to grant school fees loans to its members worth about Kshs30 million without any external borrowing. This was because the University started to pay for them partly. (13) MUSCO only needed a little more time to stabilize, thereafter, but SASRA did not respond to the letter that was sent by MUSCO showing that they were on a recovery path. The Senate should note that the same letter dated 22nd March, 2018 stated that the SACCO intended to open tender bids on 28th June, 2018, when they realised that the university was backtracking again in paying, to sell the Moi University Savings and Credit Society (MUSCO) Towers building so as to clear the Cooperative Bank loan and use the balance of the amount to carry out other SACCO operations. Mr. Speaker, Sir, further that, SASRA did not consider the letter written by MUSCO and went ahead to revoke the deposit talking license on 27th June, 2018. A letter was written by MUSCO on 22nd March, 2018 with the intention to sell MUSCO Towers and gave the tender bids of 28th but SASRA went ahead the day before the tenders were opened to revoke the deposit taking license. Several factors in the process of liquidation show that there is mischief and bad faith on the part of SASRA. It is good for the Senate to note that: One, the closure of the SACCO on the eve of the planned sale is suspect. Two, the Commissioner of Cooperatives unlawfully cancelled the registration of MUSCO and appointed liquidators without carrying out an inquiry or reporting findings to the Annual General Meeting (AGM) of the society before implementing its recommendations as stated in Section 58 of the Cooperatives Societies Act."
}