Dar es Salaam. The government will deploy auditors from the ministry of Agriculture to scrutinise the financial accounts of cooperative societies in a move aimed at curbing embezzlement and financial mismanagement.
Minister for Agriculture Daniel Chongolo said the measure would complement existing audits conducted by the Cooperative Audit and Supervision Corporation (COASCO), noting that additional independent scrutiny was necessary to enhance transparency and accountability in the sector.
Mr Chongolo was speaking at the 30th Annual General Meeting of the Tanzania Federation of Cooperatives (TFC) held in Dar es Salaam, which brought together more than 200 cooperative stakeholders from across Mainland Tanzania.
“COASCO is doing a commendable job in auditing cooperative societies. However, there is still a need for other external auditors to verify accounts and issue independent audit opinions,” he said.
He explained that the ministry has a pool of qualified auditors who will be granted temporary clearance to carry out external audits of cooperative societies in order to establish their true financial position.
“These auditors will not be the final authority. Their work will be reviewed by other auditors whom I will appoint to ensure that we obtain accurate and credible audit reports,” Mr Chongolo added.
The minister stressed that cooperative societies must be run professionally if they are to drive development and contribute meaningfully to the national economy. He urged leaders in the sector to uphold ethics, integrity and good governance.
“The Sixth Phase Government will not tolerate embezzlement or the misuse of cooperative assets by unethical leaders,” he warned, adding that the government would not hesitate to take legal action against anyone found guilty, in accordance with the law.
Mr Chongolo also called on cooperative leaders to embrace honesty and accountability to build public trust and improve the image of the sector.
“As a strong believer in cooperatives, I am always ready to receive and address any issues concerning the sector. I will not allow anyone to sabotage efforts aimed at economically empowering citizens through cooperatives,” he said.
He reaffirmed the government’s commitment to working closely with TFC and cooperative societies to ensure the sector remains strong and sustainable, and plays a significant role in achieving the National Development Vision 2050.
The minister further commended cooperatives for their participation in insurance schemes, particularly crop insurance, saying such cover provides farmers with protection and certainty in agricultural production.
He urged cooperatives to actively take part in the formulation of the Cooperative Development Master Plan, describing it as a critical framework for the sector’s long-term growth.
TFC chairman Tito Haule praised President Samia Suluhu Hassan’s administration for driving reforms that have strengthened the cooperative movement and positioned it as a key tool for national development.
Mr Haule said the federation was implementing major reforms and had, for the first time in a decade, obtained a clean audit certificate following a comprehensive financial review.
He also highlighted new initiatives, including the launch of a digital information-sharing platform, Coop Talk, which will enable members to access information and raise concerns more easily.
“Our goal is to expand membership and widen the federation’s scope to accelerate development for members and contribute to national growth,” he said.
TFC chief executive officer Fares Muganda said the federation would continue strengthening the sector through collaboration with various stakeholders, with current efforts focused on expanding cooperative insurance coverage.
He said a cooperative insurance scheme is currently being piloted in three districts in Tabora Region.
Registrar of Cooperative Societies Dr Benson Ndiege urged TFC to strengthen linkages between farmers and domestic and international markets, and to support the implementation of government policies on fertiliser and agricultural input distribution.
Dr Ndiege also stressed the need to improve farmers’ access to credit before and after harvests, curb price manipulation by middlemen, and ensure full registration of cooperative members in digital systems to improve access to services nationwide.
