adminEvelene Taadira Herald Reporter
The Government has come up with new measures to govern operations of housing co-operatives, one of which is the mandatory opening of bank accounts to deposit money received from members. This is meant to curb fraud cases associated with most co-operatives.
Local Government, Public Works and National Housing Minister Ignatius Chombo said yesterday that the new rules would be introduced within two weeks.
He was speaking at the belated World Habitat Day commemorations at Cene township in Harare South at the Ushewokunze Housing Co-operative. Minister Chombo said no member would be removed from a housing co-operative for non-payment until the new regulations were effected.
“Members of the co-operatives should not be kicked out for non-payment or any other matter until the new policy to toughen operations takes effect in a week or two,” he said.
“We want proper management. Co-operatives are not there to hoodwink and cheat people who are desperate for residential accommodation.”
Due to the rise in numbers on the country’s housing waiting list, desperate home seekers have sought refuge in housing cooperatives, resulting in some falling prey to bogus cooperatives and land developers.
Under the new policy, Minister Chombo said, individual co-operative members should deposit their contributions into bank accounts.
“They should not pay money to an individual who does not own the land and has no proven skills to develop the land,” he said.
“We want co-operators to pay their money into a bank so that the money is recorded under their name. When and if they quit that co-operative they must be given their money plus interest that has accrued to them and in case they want to sell their membership they can sale to an individual and get their money back.”
Minister Chombo took a swipe at co-operatives that were conducting business unprofessionally.
“Members joining co-operatives are made to pay joining fees and monthly subscriptions and are promised allocation of a stand on an indefinite future date,” he said.
“This loophole allowed for co-operatives to be oversubscribed, eventually resulting in some members failing to access the promised land. There is a unilateral removal of members from the co-operative without notice to the concerned members, independent audits are not being carried out to ensure that there is sound governance of the co-operatives and members are being made to pay subscriptions in perpetuity even decades after the allocation of a residential stand.”
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