Members of farmers’ cooperatives in Kirehe and Kayonza districts are counting losses after their leaders allegedly fled after embezzling members’ funds.
Members of farmers’ cooperatives in Kirehe and Kayonza districts are counting losses after their leaders allegedly fled after embezzling members’ funds.
Members of COACMU (Cooperative des agriculteurs des cereales de Musaza) in Musaza Sector, Kirehe District, allegedly lost more than Rwf60 million.
The money is said to have been embezzled by managers who have since disappeared.
Gaspard Habaguhirwa, one of the members, told Saturday Times that banks have confiscated some of their property to recover the debts.
"Farming is our busines. It’s the way to make ends meet. It’s now difficult and almost impossible to support our children, give them school fees and pay for medical insurance,” he said.
"We had made some progress, but now we are back to square zero after the theft. We had really made progress, only to be informed that we had lost Rwf60 million to our own managers. We started smelling a rat in 2012 when we stopped receiving information regarding transactions of the cooperative,” he said.
The Executive Secretary of Musaza Sector, Pascal Rwabuhihi, said the cooperative woes started when its leaders got a bank loan and failed to repay until the bank started seizing their properties, ending into their escape.
"They took a bank loan of Rwf200 million, which they shared and ignored servicing within the agreed timeframe. The key suspects in the whole saga include the cooperative president and treasurer,” he said.
Rice growers cry foul
Meanwhile, members of DUTERIMBERE rice growing cooperative based in Murundi Sector of Kayonza District are also counting heavy financial losses.
The cooperative that started in 2014 has more than 1,500 members that grow rice on 400 hectares.
A number of farmers who talked on condition of anonymity requested quick intervention of higher authorities to save the cooperative.
"We are in dilemma; no one knows how the cooperative works. The management never tells us how much we get as profits or dividends. We are normally told to pay money either as fines or otherwise, but never given receipts. We recently raised millions to buy cows, but the money is nowhere to be seen, Rwf15 million losses was not accounted for. We need help out of this financial mess,” said a source who preferred anonymity in order to speak freely.
Evariste Nireba, the chairperson of the cooperative, who is also implicated in the alleged scam, declined to comment on the matter, saying he had no time for the media.
Jean de Dieu Mitali, a representative of Rwanda Cooperative Agency (RCA), warned the managers, saying investigations would be conducted into the allegations.
"It’s unfortunate that when these managers get into office, they tend to overlook the members. We are going to do investigations into these allegations to uncover the truth,” Mitali said.
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