RCA on the hunt for people who form and use Cooperatives illegally.

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Rwanda Cooperative Agency (RCA) is going to follow up on people who took part in forming and using names of over 150 cooperatives that operate illegally. The reason for the follow up is that the concerned parties bring back what they were given in the name of cooperatives before the law if they don’t report at RCA for clarification.

RCA leadership says that the number might increase beyond 150 after the investigations and all those who took part in forming and using these cooperatives are called upon to explain themselves before they are punished before the law.

Mugabo Damien, Director General of RCA says that these cooperatives are not operating legally and they are three categories evident in these non existing cooperatives as shown below.

  • One person thought about the project, put it in action and looked for people to sign as members when they actually don’t know what it is all about.
  • Another category consists of people from one family or relatives who formed a cooperative illegally and without the aim of benefiting the members.
  • Those who started real cooperatives but some people among the members claim to be the owners using sharp minds and their levels of education among others.

The law says a cooperative is a Non Governmental Organisation (N.G.O) composed of people that join on their own will with the purpose of solving general problems concerning their economy, social wellbeing and culture, working together for the benefit of all. The cooperative members do share the losses and benefits in equal shares.

However, it’s opposite in these cooperatives because the benefit is for an individual or a certain group of members which retards development of members.

The leaders of these illegal cooperatives use cooperative names and do their own work and most times they are given financial support by concerned organisations thinking it’s for many people working for a common cause.

In Rwanda there are over 4,500 cooperatives that operate legally and over 150 cooperatives that operate illegally, an issue that is going to be investigated on.  

Hatari Jean d’Amour

 

 

 

 

About the author

Ashley Stuart is the Editor (English) for RwandaEye. She has worked as the lead project manager for Dunkirk Business Consultancy and is an authority on Foreign Markets. She is the major contributor of English articles for RwandaEye.

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