The 2023-2024 Ombudsman report has revealed substantial financial mismanagement within the Community Health Workers Investment Group Ltd, which invested Rwf390 million in constructing the Agaciro Legacy Mall. Despite the significant outlay, the commercial complex has generated a meager Rwf10 million in revenue for its 1,611 members over six years since its completion in 2017. The alarming disparity has drawn sharp criticism from members of Parliament, who are now urging swift and decisive interventions to address the situation. The Agaciro Legacy Mall, envisioned as a hub for businesses such as restaurants, bars, and beauty salons, was developed by the Community Health Workers Investment Group Ltd. The group consists of 22 cooperatives affiliated with Mugonero, Kirinda, and Kibuye hospitals in Karongi District, Western Province. ALSO READ: Community Health Workers raise Rwf14 billion in assets The Parliamentary Committee on Governance and Gender Affairs recently convened with representatives from the Ministry of Trade and Industry (MINICOM) and the Rwanda Cooperative Agency (RCA) to address the fallout from the investment group’s troubled real estate venture. Expressing concern for the 1,611 affected members, the committee called on RCA to take swift action and implement measures to mitigate further financial losses. Key concerns raised Several issues were highlighted by the parliamentary committee, including the lack of transparency in members' share allocations, and the building's failure to yield returns. Concerns were also raised about the leadership's inadequate management expertise. ALSO READ: Kagame mulls remuneration of community health workers MP Salama Uwamurera warned that financial losses could escalate due to the lack of consistent inspections, noting that RCA inspectors may be overwhelmed by the sheer number of cooperatives requiring oversight at the sector level. ALSO READ: Community health workers: Facilitating the growth of Rwanda’s health sector MP Sylvie Muyango Mukayiranga, on the other hand, emphasised the need to provide mandatory training for cooperative management to ensure they fully understand their responsibilities. She called for the election of competent leaders and the establishment of an administrative council to enhance governance and operational efficiency. Way forward The Minister of Trade and Industry, Prudence Sebahizi, acknowledged that the failure of the community health workers’ venture to yield income as part of the broader challenges that cooperatives face. He highlighted that many cooperatives currently struggle with internal conflicts and mismanagement when they begin generating substantial profits. To address this, the government is working on strategies to improve the capacity of the 5,135 cooperatives nationwide through structured training programmes. ALSO READ: Community health workers to start screening high blood pressure “We plan to train 600 cooperative leaders at a time and develop comprehensive training modules to build their capacity,” he stated, adding that cooperatives often experience inadequate staffing at the sector level and emphasized the need for digitizing cooperative operations to enhance efficiency. MP Etienne Mvano Nsabimana proposed that the Community Health Workers Investment Group Ltd should transition into a union model to ensure fair representation and prevent control by a select few 22 cooperative managers. He stressed that the project should benefit all members equally. Addressing challenges Patience Mazimpaka, President of Community Health Workers in Karongi District, admitted that the initial feasibility study for the project was inadequate. He revealed that while members received dividends for 2022 and 2023, distributions for 2024 are pending due to revenue shortfalls. “The building currently generates around Rwf800,000 monthly, down from the projected Rwf1.2million. This is because the building struggles to get to get tenants,” he said. ALSO READ: Community itself can be strong support pillar for public health in Rwanda Mazimpaka revealed that members are exploring the option of attracting a single investor to lease the entire building, aiming to secure a steady and reliable income stream instead of depending on multiple tenants. He also pointed out complications arising from the Rwanda Development Board (RDB) registration process, which lists individuals rather than cooperative names. This misstep has hindered the cooperative’s legal recognition and operational efficiency. To address these challenges, cooperative members are appealing to potential investors, particularly non-governmental organisations (NGOs) in the health sector, to lease the building in its entirety and provide a stable revenue source. “We believe that securing a long-term tenant could significantly ease our financial burdens and deliver sustainable benefits to our members,” Mazimpaka emphasised. According to Pacifique Mugwaneza, a cooperative policy analyst at RCA, cooperative organisations have the flexibility to form internal structures such as unions and federations to manage their assets and advocate for their collective interests effectively. This, he said, could help fix the Community Health Workers’ woes related to organisational challenges.
