The Mountain Journal
Operations of government appointed liquidators at the troubled Kagaa Farmers’ Cooperative Society in Murang’a have been suspended with immediate effect.
The suspension order by Agriculture and Cooperative Cabinet Secretary Peter Munya followed persistent complaints from the members passed a vote of confidence with the appointed joint liquidators.
Photo/Agriculture and Cooperative CS Peter Munya
Munya directed the Commissioner of Cooperative Mr Joseph Obonyo to immediately appoint auditors who will investigate on the conduct of the liquidators in matters related to finances collected for the members to facilitate their operations.
The complaints included the liquidator was operating without the original members register, with 274 members with land around Kabati area asked to each pay each Sh306,600 to secure their property and Sh10,000 to register claim.
Photo/ A member at Kagaa recounting how they bought the former coffee plantation from a white farmer.
“The liquidation process should have time limit it should not remain forever. There are some liquidators who have stayed in the societies indefinitely with sole interest of disposing members properties,” said the CS.
The auditors, Munya accompanied by MPs Sabina Chege and Mary Wamaua (Maragua and Kimorori MCA Amos Murigi ordered the auditors to take at least two weeks and submit a report.
Photo/ Murang’a MP Sabina Wanjiru Chege
Also former Kandara MP Joshua Toro a member of the society attended the meeting and accused the provincial administrators of betraying the members trust.
The community selected three members who will work with the auditors in the investigations.
Kagaa Society members led by John Mburu recounted how they have been frustrated when they seek information pertaining state of the society from the joint liquidators with threats their properties will be disposed off.
They claimed to have bought parcels of land at the society and paid full amount and including for the survey and titles only to be asked to repay.
Photo/Maragua MP Mary Wamaua
“The most important is that the liquidator last y1ear broken into the office and there was no handing over done as the law demand,” said Mburu.
Photo/ Agriculture CS and Former Kandara MP Joshua Toro in consultation with Commissioner of Cooperative Joseph Obonyo
Elderly members were assisted in the venue told the CS how they struggled to raise Sh500 in the 1970’s to purchase the coffee estates around Kabati and Kenol markets from white farmers.
Hell broke loose three weeks ago when the members were asked by the liquidators to part with Sh306,600 to facilitate surveying of the land and process title deeds and lodged a protest.
Highlights
Deposit collected from registration of claims was Sh10. 8 million.
Amount paid to surveyors Sh3.3 million.
Amount paid for legal fee Sh893,000 and a balance of Sh1.7million,
Cash in bank Sh2.5 million.
Security services Sh1.5million, management and administration Sh2.2million.
According to the liquidator 70 members have not been allocated land despite being armed with title deeds.”
After the protest by the members, three were arrested and locked at Kenol police station before they were released unconditionally upon intervention of MP Sabina Chege.
During the meeting, the liquidator Mr Fondo Nzovu could not explain to the members which parcels of land were surveyed by the private surveyor who was paid Sh3.3 million, and awaiting clearance of balance of Sh4.4 million.
“The liquidators had resolved to charge each member Sh106,000 to facilitate the process. But whe we reached the committee another figure of Sh200,000 was proposed and affirmed,” said Fondo.
The liquidator told Munya that the society was broken into and they were provided with the police from the sub county office.
Deputy county Commissioner Mawira Mungania did not respond to the claims made by the members.
Former Society Secretary Manager John Mungai told Munya that while he was in Kilifi on an official assignment he learnt that the liquidators with assistance of the police had broken into the office and cart away the documents.
“The members register was in the office when it was broken into thus the liquidators should produce it,” said Mungai.
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