Kiwao Saccos plans to arraign loan defaulters

DAILY NEWS Reporter in Kibaha

THE Kiwao Savings and Credit Cooperatives (SACCOs) in Kibaha District warned yesterday that it will file case against its members who have failed to pay back loans on time.

The Saccos chairperson, Ms Magdalena Mangi told members yesterday that the loans are worth 11m/-. She said defaulters have been given three months ultimatum to clear their loans or face the law. She was speaking during the Saccos annual meeting, which involved all members of the cooperative.

“We have decided to give three months to all defaulters to pay back the money or face the law, therefore by March, all defaulters are supposed to have paid a total of 11m/-,” she said.

According to Ms Mangi, the cooperative is currently registering all names of defaulters, which will be submitted to the local government officials and later to the ward mediation council before arraigning them.

She said the defaulters have affected the cooperative business since some members cannot get loans because there is no enough money in the account. “Some of us cannot seek and get loans because the cooperative account has no enough money.

We are asking all those who received loans to voluntarily pay it back as agreed so that other members could enjoy the same service,” she said. She said some members have been able to build houses, buy plots, motorcycles and open various businesses through loans. “We will not accept to see few people weakening our cooperative,” she noted.