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Government recovers Rwf300 million in loans local leaders owe SACCOs

By IGIHE
On 14 February 2019 at 09:01

Government has recovered over Rwf300 million of the Rwf600 million debt local leaders owe to the Savings and Credit Cooperatives (SACCOs) in less than one month.

In January this year, a committee made of staff from the Ministry of Local Governance, Rwanda Cooperative Agency and Security organs released a report showing that local leaders owed SACCOs a non-serviced debt worth Rwf600 million.

Effective from January 15 this year, a crackdown to recover the money started and it has now recovered more than a half of the folio in one month according to the Director General of Rwanda Cooperative Agency, Prof. Jean Bosco Harerimana.

“Now, they [local leaders] have paid Rwf300,216,184 and we hope to recover the remaining part so soon that the SACCOs continue to contribute to development of members and the country in general,” Prof. Harerimana told IGIHE on Wednesday.

Harerimana added that those failing to pay the whole debt were given two months and in case they fail to pay they will be subjected to the law.

Managers of Savings and Credit Cooperatives (SACCOs) in different districts say local leaders have less respect for SACCOs and often fail to meet their debt-servicing obligations.

“They don’t lack money because they get salaries which they present as collateral. They don’t pay the loans because they just disrespect the SACCOs, and their managers,” a manager of SACCO in Burera District who talked to IGIHE on condition of anonymity said.

There are 17 SACCOs in Burera District which are owed Rwf42 million by local leaders.

In July last year, RCA had said the non-performing loans in SACCOs had reached 16% way above the considered 5%.


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