Chongolo demands transparency in cooperatives

DAR ES SALAAM: THE Minister for Agriculture, Mr Daniel Chongolo, has directed cooperative societies across the country to strengthen integrity and transparency in the management of their income and expenditure, warning that legal action will be taken against leaders found to have misappropriated cooperative assets.

Mr Chongolo issued the directive yesterday while officiating at the 30th Annual General Meeting of the Tanzania Federation of Cooperatives (TFC), held in Dar es Salaam and attended by representatives of cooperative societies from across the country.

He stressed that sound financial management is critical to rebuilding and sustaining members’ trust, noting that cooperatives must decisively break away from past practices that undermined the credibility of the sector.

The Minister also emphasised the importance of ethical leadership, urging cooperative leaders to adhere to established values and codes of conduct to strengthen good governance and enhance the public image of the cooperative movement.

“The sixth phase government will not tolerate embezzlement or misuse of cooperative assets. Legal action will be taken against any individual found guilty of misappropriating cooperative property, in accordance with the laws of the country,” said Mr Chongolo.

He added that the government will introduce effective measures to enable the Cooperative Audit and Supervision Corporation (COASCO) to conduct audits covering 100 per cent of all cooperative societies, ensuring accurate and reliable financial records.

“Audit reports will be submitted directly to my office, and appropriate action will be taken wherever shortcomings are identified,” he said.

Mr Chongolo asserted that COASCO currently audits only about half of all cooperatives. To address this gap, he said the ministry of agriculture will temporarily deploy its auditors and financial experts to COASCO during audit periods to strengthen oversight capacity.

He further called on cooperative societies to align their development plans with the National Development Vision 2050, the Ministry of Agriculture’s vision, and the Cooperative Sector Master Plan, stressing that cooperatives must play an active role in national development.

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“Cooperatives are owned by the people. They are a bridge to development and a key engine of the national economy. The government will continue working closely with cooperative societies to ensure the sector remains strong, sustainable and impactful,” he said.

He further urged cooperatives to participate actively in the industrial economy by adding value to members’ produce and investing in small, medium, and largescale industries, including the production of fertilisers, packaging materials, medicines and other essential goods.

Mr Chongolo also directed cooperatives to develop youth-focused services and products to attract young people into the movement, saying that modern cooperatives must respond to the needs of present and future generations.

He also encouraged the use of the Tanzania Cooperative Bank to improve access to affordable financial services for cooperative societies and their members, emphasising that all investments must be productive, transparent and accountable.

He said the government remains committed to strengthening the cooperative sector by improving the legal, policy and institutional framework, expanding market access, enhancing supervision and facilitating access to affordable financing.