The Rwanda Cooperative Agency (RCA) is advocating for specialized lawyers to improve the dispensation of justice in cases of cooperative offenses, aiming to safeguard cooperative members and promote integrity within the cooperative sector.

During a 3-day training session organized by RCA and stakeholders in cooperative development in the Eastern Province, various challenges hindering cooperative progress were discussed. These challenges include the existence of ghost cooperatives, mismanagement of resources, and a dearth of youth engagement in cooperatives.

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Patrice Mugenzi, the Director General of the Rwanda Cooperative Agency, emphasized the detrimental impact of embezzlement on cooperatives, attributing such crimes to inadequate financial management systems, limited leadership involvement, unjustified loans, and insufficient follow-ups by legal authorities.

"The lack of accountability for financial crimes within cooperatives fosters a culture of impunity, endangering the cooperative movement. We advocate for specialised lawyers in cooperative law to handle these cases effectively, alongside improving coordination, partnerships, and accountability frameworks within the cooperative sector," Mugenzi stressed.

Recent cases illustrate the severity of the issue, such as the disappearance of funds by a cooperative leader in Gasetsa, Remera Sector, Ngoma District, and the ongoing efforts to recover embezzled funds from dairy farmers in Kayonza district.

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An audit conducted by RCA and Eastern Province auditors uncovered embezzlement totaling over Rwf 200 million across various cooperatives in the region.

Vestine Uwamariya, who oversees Business Development and Employment Opportunities in Gatsibo District, highlighted that mismanagement often begins with the establishment of cooperatives, exacerbated by corruption during leadership elections.

Addressing the proliferation of ghost cooperatives, Patrice Mugenzi underscored the importance of accuracy and transparency in cooperative operations. The RCA aims to identify and eliminate these non-existent cooperatives to streamline the sector effectively.

Eastern Province Governor Pudence Rubingisa emphasized the need for continued efforts to enhance cooperative efficiency and collaboration with local authorities. Rubingisa stressed proactive measures for early intervention and prevention of financial malpractice.

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At the national level, CODERVAM, a cooperative of rice farmers in Nyagatare District, emerged as a top performer for 2023, showcasing significant progress from a Rwf 400 million deficit six years prior.

While Nyagatare and other districts boast numerous cooperatives, concerns linger regarding their operational status, urging further scrutiny and oversight.

Through concerted efforts to address challenges and promote accountability, Rwanda aims to fortify its cooperative sector, ensuring sustainable development and prosperity for its members.