Judge suspends liquidation of troubled Kuscco
The Ruiru-based sacco says that the commissioner’s actions raise questions about regulatory...
The High Court has temporarily halted the liquidation of Kenya Union of Savings and Credit Co-operative Union Limited (KUSCCO) amid opposition. Lady Justice Rhoda Rutto ruled that the appointed liquidators cannot rely on the act that purported to appoint them to exercise their powers. RUPSA NWDT Sacco Society Limited initiated the case after losing Sh108.8 million following KUSCCO’s collapse.
The liquidation was ordered due to losses attributed to internal mismanagement and financial challenges, with a forensic investigation revealing a shortfall of Sh12 billion to Sh13.3 billion. The case gained urgency when Lady Justice Rutto certified it, directing parties to proceed with the legal proceedings. KUSCCO’s liquidation, which involves taking control of its assets to settle debts, could potentially lead to the entity’s closure.
The investigation pointed to ghost loans, falsified commissions, and executive mismanagement as key factors contributing to the financial losses, prompting several SACCOs to write off millions of shillings invested in KUSCCO.
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- High Court stops KUSCCO liquidation amid opposition capitalfm.africa
