Rwanda local leaders owe more than Rwf428 million outstanding loans to SACCOs such as this. Government wants them to pay the money before Monday December 31 or face censure. (NEW TIMES PHOTO)
KIGALI – Local leaders in Rwanda who fail to pay up their Sacco loans by Monday, December 31, will be censured.
The New Times, Rwanda’s local daily, has reported that the country’s minister of Local Government Prof. Anastase Shyaka, last week issued a circular instructing pursuit and punishment of all local leaders who defaulted on loans from Umurenge Savings and Credits Cooperatives (U-SACCOs).
According to the circular distributed to all the 30 district mayors, the defaulters were told to clear their outstanding loans before the end of 2018.
According to the daily, Prof. Jean Bosco Harelimana, the Director General of Rwanda Cooperative Agency (RCA), said that Umurenge-SACCOs gave more than Rwf648 million in loans to local leaders. Only Rwf220 million has been duly paid back. According to RCA there are about 502 cases of local leaders with unpaid loans countrywide, with some cases dating as far back as five years.
“They (local leaders) owe more than Rwf428 million outstanding loans to the SACCOs. Such money is a lot considering the capital of these microfinance institutions,” Harelimana said.
Prof. Shyaka called upon mayors to censure local leaders and staff who have involved in this “act of dishonesty” in case they fail to pay within the specified period.
“Make sure debtors have paid off the outstanding loans by December 31, 2018; and impose severe administrative punishments against staff who will not have abided by the requirements before January 15, 2019,” Prof. Shyaka said.
Comments
