Registrar axes TFC top echelon over corruption

SYLIVESTER DOMASA in Dodoma

THE Registrar of Cooperative Societies, Tito Haule, has dissolved the board of directors and management of the Tanzania Federation for Cooperatives (TFC) over allegations of corruption and mishandling the society.

The board and management are accused of making bogus decisions, which threaten the survival of societies principally established to help improve livelihood of people in rural areas.

Mr Haule announced the decision during an annual general meeting which was held here and attended by Agriculture, Livestock and Fisheries Minister, Dr Charles Tizeba.

In what was termed ‘serious embezzlement’ of the decade, the leadership was accused of selling organisation’s house on Plot no 190, Upanga Avenue – Oysterbay, to its tenant Melkzedeck Lutema at a price of 3.25bn/- but latter paid the new owner 260m/- as costs of repairing the structure.

It also paid 162m/- to the new owner of a house located at Plot no 57, Bloc C in Chang’ombe, Ms Neema Mgaya, as costs for repairing the house without prior formal agreement.

“From now on, the management and the board have been dissolved pending investigations into corruption and misuse of public funds allegations,” Mr Haule said on Thursday night.

The two houses were sold in 2015 without adhering to set procedures which include announcing an open-tender. Notwithstanding, the leaders had gone to borrow 25bn/- to build a structure and due to negligence, the debt soared to 52bn/-.

Minister Tizeba revealed during the meeting that the cooperative was in serious crisis with its assets likely to be auctioned soon. He named some of the assets as Ushirika Complex at Mnazi Mmoja in Dar es Salaam, KCU building in Moshi and Nyanza building in Mwanza that were used as collateral.

The Minister was, however, surprised by members of the meeting who had earlier voted not to unseat the board and management for what they described, “would tarnish the image of the cooperative.”

“I am equally wondering as to why this TFC even exists in the first place. It has not helped cooperative societies other than bringing trouble,” he said.