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.
The audit by financial consulting firm Deloitte reveals how Stima Investment lost money through multiple irregular land purchases across the country in which officials bought occupied land without conducting any due diligence or site visits, failed to settle transactions after putting down initial deposits and in other cases collected funds from members even before the preliminary purchase agreements were signed.
The Commissioner of Co-operatives dissolved the seven-member board, prompting them to file a suit in court seeking to reverse the decision.