Workers at the Royal Van Zanten flower farm have raised concerns after discovering that nearly 228 million Shillings is unaccounted for in their Savings and Credit Cooperative (SACCO).
The cooperative has had its accounts frozen for the past two months following the shortfall, sparking anger and confusion among members who rely on their savings for personal financial needs. The SACCO was set up in 2010 to help workers at the flower farm save money and access loans for personal development.
According to records, the total savings had reached nearly 259 million, with member loans accounting for about 30.5 million Shillings.
However, a recent account review revealed a shocking reality: the balance in SACCO’s bank account was just 124,783 Shillings indicating that 88% of members’ funds were missing.
Grace Kalawobi, a representative for the SACCO members, says the lack of transparency from both the SACCO committee and farm management has left them with no option but to seek legal action.
Two figures in the SACCO, current chairperson Tonny Deme and former chairperson Emmanuel Nsubuga were detained and later released on police bond.
However, the farm’s finance controller, Pieter Huys, declined to respond to the police summons, stating he had “nothing to record” regarding the matter.
“We work hard, but now the company and the SACCO committee have taken away what we saved,” she said, urging the government and workers’ unions to intervene.
The management of Royal Van Zanten claims the company has no role in SACCO operations, though workers’ contributions are automatically deducted from their payroll.
Nsubuga, the former SACCO chairperson, expressed frustration, stating that workers had requested transparency over funds deducted and remitted but received no support.
“We were summoned and ended up being detained over matters we don’t know,” he said.
Royal Van Zanten’s finance controller, Pieters, defended the company, asserting that the SACCO is independently managed by its committee and criticised workers for attempting to implicate the farm.
He further disclosed that the decision to freeze the account came after employees complained of mismanagement of funds.
According to Pieters, the company hired MHKP Associates, an external auditor, to examine the finances, although the audit found no clear source for the shortfall.
The audit report, while unable to pinpoint the shortfall’s origins, uncovered multiple lapses in SACCO management.
Key recommendations from MHKP Associates include a complete reconciliation of bank and cash book records since the SACCO’s inception.
The audit further noted that mandatory meetings – monthly committee reviews and annual general meetings – had not been held, and no annual audit had ever been conducted.
The auditors recommended that the company pursue legal action against the SACCO committee because the procedural oversights may have contributed to the SACCO’s financial mismanagement.
Current SACCO chairperson Tonny Deme disagreed with the audit’s conclusions, arguing that they lacked substantive findings. He believes that without clear answers on the source of the financial discrepancy, the audit report only adds to the confusion and tension among workers.
However, for the affected workers, their SACCO savings represent years of hard work and sacrifice, and they now face an uncertain future.
Kalawobi and other affected members hope continued police involvement will bring transparency and hold those responsible accountable.
The workers also demand that the SACCO adopt improved governance measures, including regular meetings, audits, and clear record-keeping to restore trust among its members.
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