IRIBA Microfinance in financial disputes

NORTHERN PROVINCE GICUMBI — A row has erupted between customers of IRIBA Microfinance Cooperative Society and its administrative and surveillance council over money.

Tuesday, August 05, 2008

NORTHERN PROVINCE

GICUMBI — A row has erupted between customers of IRIBA Microfinance Cooperative Society and its administrative and surveillance council over money.

The long standing row started early this year when the IRIBA microfinance administrative council accused the manager Jean de Dieu Uwimana, of loaning out over Frw1m to each of two employees of the microfinance, contrary to their governing rules.

However, Uwimana has denied the claims saying that the allegations leveled against him are a ploy by some key members of the administrative council, to have him axed in order to escape paying loans they acquired from the bank.

At a general meeting held on Sunday, attended by the Governor of National Bank of Rwanda (BNR) Francois Kanimba, at Gicumbi district hall members almost fought over disagreements.

It took the intervention of the Governor to calm the situation.

"The bank manager is authorised to loan out not more than Frw500,000,” said Josephine Mujawiyera, the chairperson of the microfinance.

Mujawiyera also accuses the manager, Uwimana of not reporting the theft of another bounty of funds belonging to the Fund for Genocide Survivors (FARG) and Social Security Fund worth Frw1.6m at the institution’s Rukomo branch.

The money was reportedly swindled by two branch employees, Jean Bosco Hagenimana and Emille Twagirayezu.

Addressing the meeting, Kanimba urged the members to find an immediate solution to the wrangle between the Microfinance manager Jean de Dieu Uwimana and some members of the Bank’s Administrative council.

"You have to get a solution to this wrangle now or else I will use the powers conferred upon me by law, to get a remedy,” said Kanimba.

The chairperson of the administrative council also accuses the IRIBA Rukomo branch manager, Jean Baptiste Nsabinana of defending the action of the two employees.

"The IRIBA Microfinance manager instead asked the employees involved in the money theft to refund the money by deducting on their salaries instead of reporting them to concerned authorities for legal action,” added Mujawiyera.

She further accuses the manager of elevating casual laborers without education requirements to cashiers in most IRIBA microfinance branches.

Aloys Hagenimana, the chairperson of IRIBA microfinance Surveillance Council, blamed the Microfinance’s Administrative council for sacking branch employees involved in the cash theft and suspending the bank manager without consulting the Surveillance council.

Apparently the council is the one charged with the task of investigating theft and abuse of office within IRIBA Microfinance Cooperative.

"Their action was against the rules governing IRIBA microfinance cooperative society and government laws regarding employees’ rights” said Hagenimana.

Addressing the members, Hagenimana appealed to them to reinstate the bank manager and other employees who were sacked in contravention of the law.

However, Uwimana aslo added that, "Some of you have accumulated millions of debts with IRIBA microfinance since 2003.”

At the meeting, some members suggested that the entire administrative council and the bank manager be booted and investigated by an independent commission.

"We cannot compromise the fate of the entire microfinance cooperative society with the bank manager,” said one member.

The assembly resolved to make a final decision on the fate of the administrative council come next elections, when the term of the current leadership expires.

Ends