Rwanda Cooperative Agency (RCA) and Central Bank in partnership with local governments have embarked on an exercise to draw lists of all residents whose savings were embezzled in Umurenge Savings and Credit Cooperatives (SACCOs) with view to compensate them. In August 2020, The New Times published a story about SACCOs members who were struggling to survive amidst Covid-19 pandemic because they were unable to withdraw their money after their savings were embezzled. “We are urging every member of SACCO whose savings might have been embezzled to go to the SACCOs office and get their money. Meanwhile we continue to pursue those who embezzled the money so that they are held accountable,” Jean Bosco Harerimana, RCA Director-General told The New Times. He said that some of the victims who have been identified are now getting their money. “Those who have not yet been identified and yet to get their money, the registration exercise continues so as to compensate them,” Harerimana said but didn’t disclose a total number of the victims. The issue of embezzlement has been rampant in different SACCOs due to irregularities in the management of cooperatives. By the end of last year, officials say, about Rwf2.5 billion had been recovered out of Rwf6 billion that was embezzled from SACCOs and 138 cases related to embezzlement of SACCO funds are being pursued. Last week, members of Nkomane SACCO in Nyamagabe District started to get back their savings. At least Rwf126 million were embezzled from this particular outlet since 2015 to the extent that the SACCO struggled to operate normally and pay its workers. “I had lost my savings of up to Rwf400,000…there is good news because we are getting back our money after so many years waiting. We will use the money to revive our small income generating activities,” said Emmanuel Bizimana, one of the members. He said that the move will revive their trust in the SACCOs which had been lost. Currently the former managers of the SACCO are in prison. The SACCO has 5,900 members of whom 1,168 lost their savings through embezzlement. However, only 547 members have already got back their savings as the compensation drive continues. Lambert Kabayiza, the Vice Mayor in charge of economic development in Nyamagabe District told The New Times that there are those who felt they had saved so little and therefore feel no urgency to claim their money. “Central Bank agreed to help us compensate them. All members who were victimised will get their money. The compensation follows a two-week exercise and audit that identified all victims,” he said. Jean Paul Habineza, the vice mayor in charge of economic development in Gisagara District also told The New Times that they have already identified all the victims and disbursement is currently ongoing. “We went to the villages to identify all members of SACCOs whose money had been embezzled,” he said. Ishyaka SACCO, which is one of the biggest in the district with over 9,000, lost over Rwf60 million to embezzlement. One of the SACCO members had told this paper that he had saved Rwf600, 000 which he lost. According to the vice mayor, the embezzlement also involved ‘ghost loans’ that were issued towards the end of 2019. The issue of embezzlement affected many SACCOs across the country and the money is mainly stolen by managers and accountants of these cooperatives. In March, 2020, a manager of Cyabingo Savings and Credit Co-operative (SACCO) in Gakenke District was arrested following alleged fraud and misappropriation of funds amounting to over Rwf54million. Government seeks to automate SACCOs, a move expected to reduce embezzlement of members’ savings. Automation will make way for the establishment of a Cooperative Bank bringing together all the 416 Umurenge-SACCOs from across the country.
