Following a directive by the Commissioner of Co-operatives to remove all seven members of the Stima Investment Co-operative Sacco board, the board has now retaliated.
The board has now moved to court to file a suit seeking to reverse the decision.
The board members want the court to “to quash the decision made by the Commissioner of Co-operatives’, arguing that they were legally elected on November 28, 2018.
“There is no basis in law and fact for the 1st respondent (Commissioner of Co-operatives) to dissolve the board of directors,” says the board in its application. The court papers point to an elaborate scheme of mismanagement of members’ funds.
The entire Stima Investment Co-operative Sacco board was disbanded by the Commissioner of Co-operatives following an audit that revealed losses exceeding half-a-billion shillings.