What You Need to Know
Tanzania’s Minister Daniel Chongolo has proposed new measures to combat fraud in the cooperative sector, including dedicated law enforcement desks. He emphasized the need for integrity in managing cooperatives, which handle significant financial resources. The initiative aims to restore trust among members and ensure accountability within the sector.
Africa-Press – Tanzania. THE Minister Daniel Chongolo proposed establishing dedicated desks within national law enforcement agencies, including the Prevention and Combating of Corruption Bureau (PCCB), the Police Force and the Office of the Director of Public Prosecutions (DPP) to accelerate the handling of fraud cases involving cooperative societies.
Opening the Cooperative Stakeholders’ Meeting in Dodoma yesterday, Mr Chongolo said the presence of a few dishonest leaders continues to erode members’ trust and slow progress in the cooperative sector.
He insisted that introducing specialized mechanisms at district and regional levels is crucial.
“Why can’t we have a special cooperative police office, from a chief officer overseeing it to officers handling the protection of cooperative members’ rights?” he asked.
The minister underscored the high financial stakes within the sector, noting that cooperatives revolve more than 6tr/- annually, including 1.16tri/- managed by Saccos and about 4.2tr/- invested as cooperative business capital.
He stressed that these funds require strong safeguards to protect members’ interests.
“When cooperative societies are managed with integrity, we achieve excellent results,” he said.
Mr Chongolo cited the notorious Sikonge case, where leaders disappeared with more than 1.2bn/- of members’ money, causing severe suffering to the affected families.
“I will personally engage all relevant authorities to ensure we end the era of untrustworthy cooperative leaders who misuse members’ funds as if it were normal practice,” he said.
The minister also launched the “Linda Ushirika, Chagua Uadilifu” (Protect Cooperatives, Choose Integrity) campaign, aimed at strengthening accountability and restoring public confidence. The annual campaign will include evaluations to assess progress and determine further interventions.
Through the campaign, the Cooperative Development Commission (TCDC) will intensify digital transformation and ensure thorough auditing of all cooperative societies, with strict action against those who flout regulations.
Deputy Minister for Home Affairs Ayoub Mohamed Mahamoud assured that the Police Force will enforce laws and procedures to protect cooperative properties.
Earlier, TCDC Registrar and Chief Executive Officer Dr Benson Ndiege said the Commission has begun digital integration of cooperative systems, including linking digital weighing scales to central systems.
“This will allow real-time monitoring, from the point where produce is weighed at the village level, all the way to the Registrar. It will also make it easier to trace and address challenges,” he said.
He noted that the Commission continues to work closely with key institutions such as PCCB, the Judiciary and the DPP to ensure swift action whenever cases arise.
However, Dr Ndiege acknowledged persistent challenges within cooperatives, including internal conflicts, poor financial discipline and delays in handling cases within law enforcement agencies.
He said the Commission will continue providing education to cooperative members to empower them to understand their rights and responsibilities.
Speaking on behalf of the Chairperson of the Parliamentary Standing Committee on Industry, Trade, Agriculture, and Livestock, Ms Gati Zefania said that cooperatives were once the backbone of farmers and livestock keepers, enabling access to reliable markets, essential inputs, and affordable loans.
She said the decline of these services had weakened the cooperative movement, emphasizing the need to strengthen supervision and accountability to restore members’ trust.
Cooperatives have historically played a vital role in Tanzania’s economy, providing farmers and livestock keepers with access to markets and financial services. However, issues of mismanagement and fraud have plagued the sector, leading to a decline in trust and effectiveness. Recent initiatives aim to revitalize cooperatives by enhancing oversight and accountability, ensuring that they can fulfill their original purpose of supporting local communities and economies. The government’s focus on digital integration and law enforcement collaboration marks a significant step towards addressing these longstanding challenges.
