Over 50 cooperatives lose licenses

At least 51 cooperatives have lost their operating licenses while an undisclosed number struggle to meet legal requirements to retain their current status, Rwanda Cooperative Agency (RCA) has said.RCA`s Deputy Director General, Gilbert Habyarimana, told The New Times yesterday that the decision was reached after members realized they could not adjust to suit the law establishing cooperatives. “We only demanded that these cooperatives comply with the law, unfortunately, members insisted they were not able as some members are not committed to continue with their obligations,” Habyarimana said.Launched last month, the campaign was aimed at cracking down on ghost cooperatives countrywide. The first phase identified 150 cooperatives which underwent a screening exercise, finally narrowing the number down to 51 that have finally been disbanded.Habyarimana explained that among the cooperatives, seven are considering becoming companies while six have shifted from their previous operations into other businesses.Speaking to some of those whose cooperatives could not continue operating, they said it was not possible to comply with the requirements.“We have been struggling up to date and the problem is that most of the members have not been active. Some even diverted from the original mission we had when starting our cooperative in 2000,” said J. Claude Biranga. The Director General of RCA, Damien Mugabo, called upon cooperative members to work together and uphold the objectives of their cooperatives.“We have over and again carried out sensitization campaigns to make sure that cooperative members are informed about the legal requirements to avoid being victims of such crackdown campaigns,” Mugabo said.

National

Over 50 cooperatives lose licenses