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Shepias Dube Business Reporter
GOVERNMENT is set to introduce stringent measures to curb maladministration and the abuse of funds by housing co-operatives following numerous complaints from members. Small and Medium Enterprises and Co-operative Development Deputy Minister Cde Noveti Muponori said Government was concerned with the rot in housing co-operatives and warned those on the wrong side of the law to reform or face the music.
“Government will not fold its arms as innocent home seekers are duped of their hard earned cash. To those who are out there still doing this diabolic business of stealing from innocent people, your days are numbered, repent now as the long arm of the law is catching up with you sooner rather than later,” he said.
Cde Muponori said last year his ministry dealt with more than 63 cases of maladministration in housing co-operatives and against this background, Minister Sithembiso Nyoni met leaders of housing co-operatives and read them the riot act, emphasising the need for audits and convening Annual General Meetings (AGMs) where management committees are elected.
He said he was mandated to bring sanity in housing co-operatives by Cde Nyoni and has since held several meetings with the co-operatives and visited some of the areas to check on progress and compliance to provisions of the Co-operative Societies Act (chapter 24:05).
“Furthermore, district officers are on the ground monitoring adherence to the law.”
He said it was important for the ministry to ensure that co-operative leadership complied with the Act especially with regards to having bank accounts, audits, holding AGMs where leadership is elected and also that bogus institutions were not permitted into the arena of stands allocation which falls under the purview of the Ministry of Local Government and National Housing.
“It must also be known that individual members of housing co-operatives cannot enter into a contract with a developer; it is the duty of the co-operative to enter into such agreements with land developers. Individual co-operators deposit their subscriptions into the co-operative’s bank account and not into the developer’s account. The co-operative would then pay the developer upon being satisfied with the services of the developer. Approval of payment to the service provider must also be obtained from the general meeting.”
Cde Muponori said there was a need to intensify education and training, not of management committees alone, but also of ordinary co-operative members so that they were aware of their rights and what was legally expected of management committees.
He advised home seekers to be careful before committing themselves to membership of any co-operative.
“For those who wish to join co-operatives it is prudent to liaise with the Ministry’s Co-operative division to check on whether the society is registered and also its track record. It is also important to deal with the general meeting which is the supreme authority of any co-operative than dealing with individuals. One must insist on depositing subscription fees into the co-operative bank account and get a co-operative receipt from the treasurer upon producing a bank deposit slip.”
However, the deputy minister praised bona fide housing co-operatives which over the past two decades have worked tirelessly to ensure that millions of Zimbabweans have a roof over their head.
“It must also be highlighted that for over 20 years now, no institution whether central Government or Local Authorities have been catering for affordable accommodation for low income earners except housing co-operatives that have taken over this important role. Therefore housing co-operatives are the only medium of ensuring that those in the lower echelons of our economy get a roof over their heads,” he said.
He said Government would therefore continue working with co-operatives in providing houses to citizens.
The country faces a huge backlog of about 1,25 million units due to rising housing demand in urban and resettled areas.
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