LUTSANGO CO-OP LOSES OVER E3M SAVINGS

MANZINI - Concerns have been raised by members of the Swaziland Lutsango LwakaNgwane Multi-Purpose Co-operative over the unavailability of approximately over E3 million from their savings, leaving many unable to access or borrow funds. Tensions have escalated, particularly as those wishing to leave the co-operative are being told they must wait at least a year before receiving their payments. The missing funds have been linked to alleged mismanagement, including members taking loans on behalf of others, fleeing the country, or in some cases, passing away. Other reasons cited were some members also failing to repay loans, further exacerbating the financial strain.
The co-operative, which was originally formed by local women seeking alternative income sources outside formal employment, has faced financial difficulties since 2020.

Frustrations

Members gathered at the cooperative’s premises at Ka-Shali last Friday, where frustrations ran high as they voiced their grievances on the missing savings. One upset member expressed her apprehension, stating that if the co-operative were to close, they would receive nothing in return for their years of savings. “Before closing this co-operative, I would request our office to explain how the wheels fell off this bus. We want the money. We are here today with the hope to get our monies,” the woman stated. She further appealed to the members to remain patient and listen to the manager’s explanation. After some discussion, the members reached a consensus and agreed to hear the office’s response.
Meanwhile, one of the managers explained that the co-operative began facing difficulties in 2020 when certain members took money without repaying it.

She said the missing funds are over E3 million, while members are requesting E1.5 million from the co-operative. She went on to explain that if the loans taken by members were repaid, it would cover the claims being made by the members. The manager added that the issues began during the COVID-19 pandemic, when the co-operative visited various branches to update members on its status. At branches like Mtsambama, Lamgabhi, Ntondozi and Madlangampisi, the co-operative informed members that the cooperative was struggling due to members borrowing money without repaying it. She shared a specific example where a secretary had taken a loan of E120 000 on behalf of the members in one of the constituencies. The secretary reportedly fled to South Africa, and despite efforts to locate her, they had not been successful.

“We have asked lawyers to go in search of her, and it was discovered that she is in South Africa. “The challenge is that some members are not forthcoming with information on her whereabouts in the neighbouring country,” the manager said, causing murmurs of shock from the audience. The manager went on to mention another case at Mtsambama, where a member took over E60 000 but later suffered a heart attack. She explained that the co-operative had sought the assistance of the commissioner of co-operatives in investigating the matter.

Explained

“These people ask members to take loans on their behalf after members put in their savings,” the manager explained. At the Nsangwini branch, she revealed that another member had taken a substantial loan, though she only recalled a few cases off the top of her head.  Additionally, some members had taken loans for personal expenses like school fees, but were now repaying small instalments of around E400 per month. During the meeting, it was agreed that if the co-operative were to be liquidated, members would not receive their savings. As a result, it was decided that the loans owed by members should be repaid in order to recover the funds, allowing members who wish to leave to receive their savings.
Meanwhile, members who wished to discontinue were requested to wait for about a year while the co-operative tried to recover the funds. This situation has raised wider concerns about the safety of joining co-operatives, as similar cases of mismanagement and theft have been reported elsewhere. Recently, tensions rose between the Ministry of Commerce, Industry and Trade and some affiliates of the Eswatini Multipurpose Co-operative Union (ESWAMCU).

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