Friday, April 18, 2008

TREASURER OF KONOLA ACADEMY ALUMNI ASSOCIATION MISAPPLIES $50,000, MEMBERS CRY


What will be known, as classic textbook case of how not to run an alumni association has been uncovered in the Konola Alumni Association.  It has been learned that its treasurer who was voted into the position in 1990 and held the position until the last convention in September of 2006 defrauded the Konola Alumni Association of about $50,000 over a 17-year period.


According to sources in the hierarchy of the organization who explained the genesis of the story, the Treasurer was elected and has held the position of Treasurer for successive four-year terms due to his trustworthiness and his immaculate record keeping.
He was elected in 1990.


One may wonder as to how such a fraud could have been perpetrated amongst a group of people as learned as the composition of Alumni of Konola?  The group has doctors, lawyers, teachers and a wide range of other professionals.


The source in a telephone interview stated that the Treasurer kept complete records, but what the body never asked for were bank statements.


How did the body finally get to know?  Besides small projects of chairs, yard maintenance equipment to send to their school, the association had never undertaken a large project as the $12,000 truck they bought, serviced and paid freight for in 2005.


The truck caused $7500.00, servicing was $250.00 and shipment and licensing was about $4500.00.  As far as the body was concerned at the time, the treasury had up to $30000.00 plus, so when the treasurer was asked to provide the money for the quick shipment, and he took three months to come up with the amount, it was then that the rumor mill started.


People were quite skeptical about out rightly accusing the treasurer, The President of the Organization flew in to Minnesota to meet the State’s representative and together they asked for a meeting with the Treasurer, unfortunately that meeting never was held.


Several other incidents pointed to the fraud, but it was all about whom to bell the cat.  Meanwhile, the treasurer went about his normal duties day by day.


The final straw came during the convention when the report was about to be made and the Treasurer called the Board of Directors and other members of the finance committee in. He proceeded to ask their forgiveness and tell them that the money, about $18,000 had been lent out to a Pastor whom he did not want to name. 


In the main time, his wife was asked to keep quiet several times as she just went on explaining much to the annoyance of the members.  When quizzed further, the Treasurer broke down and confessed to misappropriating the funds.


The Board then decided to cover up the fraud.  While the body waited for the report, the caucus members came out and told the body that the Treasurer’s report was not forthcoming and that it would be made and mailed out to all the members.
Some members were mad, but the trust for the Treasurer won out and the convention proceeded without incident.


To make sure that the amount given by the Treasurer was accurate, the Board went to the bank to request five years of statements.


When the statement was received and reviewed, some members broke down and cried.
The CD was broken and emptied of the $11,000.00.  Monies from conventions, year in and year out were systematically deposited cleared and then withdrawn, sometimes up to $1500.00 a day for days.  The organization paid so many fees for being below the limit that it amounted to hundreds of dollars.


When a forensic audit of the statements was made for the five years, it showed that the Treasurer used up to approximately $50000.00 from the Association.


The organization is currently in the process of waiting for the Treasurer to refund the money, which he says, will be done in two months as of September.


Other members are afraid that if nothing’s done about this gross abuse of public trust, the viable organization would surely crumble.  Others yet are concerned as to how this could have been perpetrated for so long without anybody stopping to check.


The organization after the audit had only $379.00 balance in its account.  The organization is planning legal action if the Treasurer does not pay the amount.  This one insider says is to shore up the organization and keep the morale up.

1 comment:

Mozola said...

The reporter did a fairly good job. Truly, the person who gave the information is an insider and/or an officer. However, the amount in question is less than $50,000.00.

Members of the organization hope and pray that they will do better from now on. Lessons have been learned.