Karongi cooperative folds over debt

KARONGI - A workers’ cooperative bank in Karongi district has been closed by the National Bank of Rwanda (BNR) over debts amounting to Rwf9.9million that had accumulated since 2002. The cooperative which opened in 1997 had a total of 20,426 members, 800 of whom were considered active. The cooperative also owed some of its members close to Rwf0.7million.

KARONGI - A workers’ cooperative bank in Karongi district has been closed by the National Bank of Rwanda (BNR) over debts amounting to Rwf9.9million that had accumulated since 2002.

The cooperative which opened in 1997 had a total of 20,426 members, 800 of whom were considered active.
The cooperative also owed some of its members close to Rwf0.7million.

BNR ordered the cooperative to shut down following a series of reports that indicated deteriorating performances over the years.

A letter signed by the Martin Kampayana, the liquidator of workers’ cooperatives at the national level, says all members owed money by the cooperative are expected to report the matter not later than February 28, 2010.

“We shall allow the members who get their salaries through the bank to use it until the end of next month after which other alternatives will be sought,” reads the letter in part.

Anastase Kanyashi, the president of the cooperative in Karongi district said that they are now trying to recover the money from creditors.

At least 48 people have come forward to claim their deposits from the dissolved microfinance.

“Two of our former employees took off with over Rwf5m and we are intending to recover all our debts from such people so that those we owe can also get back their money,” said Kanyashi.

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