George Otieno Ototo, the man at the centre of a suspected multibillion-shilling heist at Kenya Union of Savings & Credit Cooperatives (Kuscco) wonders why his ‘diligent’ service as the managing director at the Sacco’s umbrella body should go unrewarded.
While he is starting the week on the radar of crime investigators who want to take him to Milimani Law Courts to answer charges including money laundering, stealing, and uttering false documents, he is also in the Employment and Labour Relations Court where is suing his employer for Sh120 million compensation.
In the court papers, the man who a forensic audit links to a Sh13.3 billion heist, claims he served Kuscco “diligently” and “dutifully” and all he wants is the Sh120 million benefits to enjoy a “peaceful retirement period.”
However, that is now dependent on how he argues the case facing him as the Directorate of Criminal Investigations (DCI) sleuths comb through a 208-page forensic audit that uncovered years of financial improprieties at Kuscco.
Four former Kuscco officials including; George Magutu Mwangi(former chairman), George Ochola Owino(ex-finance manager), Jackline Pauline Atieno Omolo(ex-legal officer), and Mercy Njeru who led the radio project have since been charged in court over the suspected heist.
The four former officials were last Thursday charged at Milimani Law Courts with various offenses including money laundering contrary to section 3(b) as read with section 16 of the Proceeds of Crime and Anti-money-Laundering Act and stealing by directors or officers of companies contrary to section 282 of the Penal Code.
Other charges include making a false document contrary to Section 347 (a) as read with section 349 of the Penal Code and uttering a false document contrary to section 353 of the same code.
Mr Ototo spent 21 years at Kuscco, rising through the ranks to the position of Managing Director in 2010.
To many, he was the voice of reason for the industry, using Kuscco’s signature Sacco Leaders Convention to mingle freely with senior officials from Saccos, the Ministry of Cooperatives, and the Sacco Societies Regulatory Authority.
However, the findings of a PricewaterhouseCoopers (PwC) forensic audit that puts him and other ex-senior officials at the centre of a Sh13.3 billion heist at Kusco, has offered a sneak peek into an alleged side of him that will require him to prove his innocence in court.
The 10th edition of Kuscco’s Sacco Leaders Convention gets underway this Tuesday in Mombasa, coinciding with the same day Mr Ototo is expected to appear in court to take a plea.
Between 2018 and 2023, the PwC audit shows that Kuscco spent Sh530 million on “activities and processes” for maintaining “good corporate governance.”
However, the audit reveals billions of shillings that were siphoned and hidden through “extensive errors and misstatements” in the books of accounts.
The heist left Kuscco with assets of Sh5.2 billion against liabilities of Sh17.7 billion liabilities, sinking it into Sh12.5 billion insolvency. While the audit adversely mentions Mr Ototo in many of the things that went wrong at Kuscco, he is suing the institution for Sh120 million.
In the court papers, Mr Ototo claims that he “diligently carried out his duties” at Kuscco, complied with the terms of his employment, and “at all times observed high levels of professionalism” at the workplace.
“The claimant (Mr Ototo) avers that during his tenure as the group managing director, the respondent (Kuscco) confirmed that he had ensured the successful turnaround, restructuring, creation, and successful implementation of the respondent’s subsidiary companies,” reads the suit in part.
Kuscco, which the PwC audit shows he ran down while in the company of other former officials, is prepared for a legal battle against Mr Ototo’s claim.
Cecil Miller, the managing partner of Miller & Company Advocates, who is the lawyer representing Kuscco in the matter and other financial losses, says Kuscco has filed a memorandum of reply and also wants to put in a counter-claim, considering the losses that PwC has uncovered.
“He can’t claim Sh120 million benefits and the organisation has lost billions of shillings under his watch. It is horrendous. We want to file a counter-claim against him and other former officials for the losses that have been suffered,” said Mr Miller.
Mr Ototo is accusing Kuscco of neglecting, failing, or refusing to pay him his salary and other benefits that include Sh6 million salary, Sh200,000 security allowance, Sh100,000 entertainment allowance, and Sh100,000 transport allowance –all covering February and March last year.
In addition, he is seeking Sh250,0000 medical allowance, Sh94.5 million gratuity benefits, Sh6 million long service award benefits, and Sh12.85 million for leave days not taken.
Court papers reveal that Mr Ototo was earning a monthly salary of Sh3 million, an annual medical benefit of Sh250,000, and a monthly security allowance of Sh100,000. He was also enjoying a monthly entertainment allowance of Sh50,000 and a transport allowance of Sh50,000.
Mr Ototo claims that he voluntarily applied for early retirement at 51 years on January 11, 2024, which Kuscco acknowledged the following day and directed him to proceed on annual leave for 60 days awaiting confirmation of his request.
