A regulator has sent home a Maseno University Retirement Benefit Scheme administrator over questionable acquisition of property.
The Retirements Benefits Authority (RBA) Chief Executive Officer Edward Odundo in a letter seen by The Standard notified the scheme administrator, Sammy Njeru, of his removal from office over acquisition of property from National Bank of Kenya in Kisumu.
The move suspended indefinitely the planned elections for the board of trustees, which were scheduled to take place on April 22 and May 20, until the matters affecting the fund are resolved.
The letter is copied to Vice Chancellor Julius Nyabundi
The pension schemes regulator also blocked the planned annual general meeting as trustees resigned from management following an inspection report that raised the concerns.
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“After receiving information from trustees together with the inspection report done by RBA officers, we are satisfied that your actions are in breach of your fiduciary duties and obligations,” Mr Odundo said in the letter.
The trustees have resigned amid queries over acquisition of the prime property located in Kisumu town.
Mr Njeru is accused of breaching his fiduciary obligations including submitting a bid responding to a bank advert for the sale of its properties on behalf of trustees without written authority or proper authorisation.
The regulator also questioned why Njeru failed to exercise prudence by responding to the advert without making inquiries about the reserve price, conducting due diligence and getting advice from a valuer before bidding.
Njeru is expected to respond in writing within 14 days, failure to which RBA will appoint a scheme administrator to protect the interests of the members, or be summarily removed from office without any further reference to him.
