In a shocking revelation, the Geothermal Development Company (GDC) Staff Retirement Benefits Scheme has allegedly fallen victim to a rampant spree of corruption and mismanagement.
An anonymous source has brought forth troubling information, alleging that the scheme’s Managing Director and CEO, Paul Kamau Ngugi, who also holds a position as a Trustee of the Pension scheme, is at the center of this alleged financial misconduct.
The source claims that Ngugi, in collusion with his accomplices strategically placed on the Board of Trustees, has siphoned funds from the pension scheme.
Reign of Silence and Oppression
The Board of Trustees, it is asserted, operates under an ironclad code of silence, stifling any form of dissent.
The source further claims that any Trustee or staff member who dares to voice opposition to Ngugi’s objectives is met with fierce retaliation by the CEO, who has held his position for just three months.
Characterized as power-hungry and driven by greed, Ngugi’s three unsuccessful attempts to secure the CEO position are seen as a possible motivation behind his alleged embezzlement spree.
Failed Transitions and Professional Negligence
One of the most concerning allegations revolves around the recent transition of Administration services within the scheme.
The GDC Staff Retirement Benefits Scheme shifted from Liaison Financial Services to Enwealth Financial Services in February 2022.
The legal requirement stipulated a 90-day period for the transition to be completed.
However, a startling 18 months later, no data has been transferred, indicating a failure to comply with this critical legal obligation.
The Trustees’ response to the issue has been simply stated as, “We are a dysfunctional board.”
Misappropriation and Questionable Financial Maneuvers
In a shocking twist, the source reveals that the Trustees, against the backdrop of an Income distribution policy, reserved a staggering Ksh 36 million of income for 2021.
This reserve was purportedly intended to mask financial misappropriations dating back to the years 2010-2018, a period for which transition data is still absent.
The peculiar silence surrounding this move raises numerous unsettling questions.
Are departing members receiving their due? Or are the Trustees using unclaimed balances to bolster their personal accounts?
Lavish Unapproved Expenditures and Regulatory Cover-up
Trustees’ lavish foreign travels, undertaken without approved budgets, have raised eyebrows.
Inquiries from the Retirement Benefits Authority (RBA) have either been ignored or obscured in what is suspected as a regulatory cover-up.
Documentation seen by cnyakundi.com includes a letter from the MD & CEO of RBA to the former chairman of the Board of Trustees, which reportedly went unanswered.
Fictitious Reports and Allegations of Collusion
Further allegations point to fictitious reports presented to mislead and manipulate scheme members.
A report from the Board chairperson indicates an unrealized loss of 6.6 million distributed among over 900 members.
However, the source points out that actual statements show negative balances exceeding KSH 100,000 for some members.
Suspicion surrounds the role of the chairperson, Peter Nganga Kariuki, as a possible accomplice in the alleged cover-up.
The Whistleblower’s Plight
In light of these alarming claims, the source discloses an atmosphere of fear and trepidation among GDC staff.
Mentioning pension funds carries the risk of transfers, harassment, and even job loss.
The source paints a grim picture of Paul Ngugi’s wrath against those who dare interfere with his alleged wrongdoing.
Call for Accountability
Amidst growing concerns, GDC staff and members of the Staff Retirement Benefits Scheme are joining forces to demand accountability.
They present three crucial demands:
Forensic Audit: A comprehensive investigation into the scheme’s operations since its inception to unveil any instances of financial mismanagement.
Lifestyle Audit: Scrutiny of the lifestyles of all Trustees who have served since 2010, alongside a meticulous examination of the financial movements of their next of kin.
Procurement Audit: An audit of all procurement activities within the scheme, stretching back to its beginning, to uncover any irregularities in the expenditure of scheme funds.
As the allegations of corruption and mismanagement loom large over the GDC Staff Retirement Benefits Scheme, concerned staff and members are hoping that their plea for a thorough investigation will bring to light the truth about the alleged malfeasance.
The call for transparency and justice resonates strongly, highlighting the importance of upholding the principles of honesty, fairness, and accountability in safeguarding the future of those who have invested their trust and their hard-earned money in the scheme.
