Investigative Report: The Truth Behind the Allegations Against UFAA Bosses
The Unclaimed Financial Assets Authority (UFAA) is currently embroiled in a scandal, as allegations have surfaced against CEO John Mwangi and other high-ranking officials. They are being accused of embezzling billions of funds that were intended for deceased individuals and their rightful beneficiaries.
Sh10.5 Billion Squandered Through Dubious Payments
A scandal is brewing at the Unclaimed Financial Assets Authority (UFAA), raising serious concerns about the misappropriation of unclaimed assets and money belonging to the deceased and their surviving next of kin.
Allegations of financial discrepancies and questionable payouts have put the agency’s top management, led by CEO John Mwangi, under intense scrutiny.
Recent investigations have revealed shocking discrepancies at UFAA, with Sh10.5 billion out of Sh11.5 billion audited in the last five years unaccounted for.
This revelation has sparked fears that the agency, tasked with safeguarding and reuniting unclaimed assets with their rightful owners, is failing in its mandate.
Further complicating matters are controversial payments totaling Sh418 million to external auditors and Sh159 million to alleged suppliers.
These expenditures raise serious questions about financial governance and accountability at UFAA.
Delayed Transfers and Silence from the Bosses
Adding to the list of concerns are unexplained delays in transferring Sh1.2 billion units to the Nairobi Stock Exchange (NSE) and Sh466 million units to UFAA.
These delays not only undermine the agency’s credibility but also hint at possible financial mismanagement or, worse, fraudulent activities.
UFAA board chairman Francis Kigo Njenga and CEO John Mwangi acknowledged receipt of the queries but declined to provide any substantial response.
This silence only adds to the growing suspicions and calls for transparency.
Calls for a Forensic Audit
In response to these alarming issues, a petition has been filed before the Senate demanding a thorough forensic audit of UFAA.
Nominated Senator Gloria Orwoba is pushing for the corrupt UFAA boss and accomplices to be held accountable.
Orwoba wants both the Senate and the National Assembly to launch an investigation into the billions of shillings’ worth of unclaimed assets.
Senator Orwoba highlighted that Sh10 billion worth of assets are misappropriated annually, including Sh500 million in unaccounted auditing fees.
Official records show that by 2023, UFAA was holding over Sh60 billion in unclaimed assets.
This includes Sh33 billion in cash and cash equivalents and Sh1.7 billion in shares amounting to Sh30 billion.
The ineffective UFAA has managed to reunite only a fraction of these assets with their rightful owners.
Auditor General’s Concerns
Auditor General Nancy Gathungu has raised a red flag over the security of unclaimed assets. Her report for the financial year ended June 30, 2022, indicated a reunification rate of only three percent.
Gathungu’s concerns underscore UFAA’s failure to effectively trace and reunite unclaimed assets with beneficiaries.
Need for Immediate Action
The gravity of these allegations cannot be overstated. The parliamentarians’ concerns and the Auditor General’s findings underscore the urgent need for a comprehensive probe into UFAA’s operations.
Conclusion
The Unclaimed Financial Assets Authority (UFAA) faces a critical moment. Billions of shillings in unclaimed assets are at stake.
We must thoroughly investigate allegations of financial mismanagement and fraud. UFAA’s leadership remains silent, which only fuels suspicion. We need a forensic audit to restore public trust.
This will ensure that the deceased and their next of kin receive their rightful assets.
