SOUTHERN PROVINCE MUHANGA — The governor of the National Bank of Rwanda (BNR) has criticised Muhanga Workers Credit Union (UCT) for failing to recover loans advanced to its members. François Kanimba, made the remarks while visiting leaders and members of UCT-Muhanga on January 25, within the Nyamabuye Sector. Kanimba had earlier on visited the Nyanza UCT Cooperative in a bid to examine problems faced by Micro finance institutions in the country. While in Muhanga district, Kanimba said that the central bank will not loan any more funds to UCT-credit union unless they raised the required minimum deposit. His remarks followed reports that UCT-Muhanga branch had registered massive losses last year while a total of Rwf.29m was allegedly embezzled by top officials. The officials implicated in the financial scam were named as Joseph Nyamurinda, and Pacifique Uwamaria who are both said to have swindled Rwf.17m, Eugene Ndayambajye who is alleged to have embezzled Rwf.7m, and Eugene Ndahayo, is said to have swindled Rwf.2m. They are currently facing fraud charges. Kanimba commended the members for electing new leaders and working towards reviving the operations of this cooperative society. “Based on the past experience, most MFI’s were closed due to mismanagement of customers’ deposits, but UCT exhibits hopes and chances of success and this means that all the debts have to be recovered immediately for it to remain afloat if it has to remain open for business,” Kanimba said. A district committee was formed and tasked to recover over Rwf.75m that is reportedly being taken as forming part of the un-serviced loans. So far Rwf.8m has been recovered. It was also revealed that top officials in UCT-Muhanga are among the bad debtors, and the meeting resolved that the officials who owe the bank should repay the loans by June this year. Kanimba also urged the leaders to work in transparency, integrity and be exemplary in repaying loans; insisting that punitive measures would be taken against those involved in the mess. UCT members raised various concerns including the need for conducting refresher training sessions. The officials attributed consistent decline of loan recovery to a shift made with respect to teachers’ salary transfers from UCT to the Teachers Saving Scheme (Mwalimu-Sacco). Kanimba however, said the operations of Mwalimu-Sacco shouldn’t interfere with the operations of other mocro-credit institutions, explaining that teachers can have two accounts and their salaries channelled through the nearest UCT bank account. Ends
