PCCB to probe loss of Sh120bn

Dodoma. The Prevention and Combating of Corruption Bureau (PCCB) disclosed yesterday that management teams of various cooperative societies across Tanzania have occasioned losses amounting to Sh124.05 billion.
The anti-corruption body now wants those involved in the embezzlement or negligence that resulted in the loss to return the money before legal action is taken against them. This was revealed here yesterday by the PCCB deputy director general, Brigadier General John Mbungo during an event where minister for Agriculture Josephat Hasunga presented an audit report on cooperative societies to PCCB. The Co-operative Audit and Supervision Corporation (Coasco) conducted the audits on operations of the cooperatives for the 2018/19 financial year.
Brigadier General Mbungo informed members of cooperative societies, their boards of directors, employers, Savings and Credit Cooperative Societies and those involved in collecting the loans to start remitting the money soon.
“We will investigate them thoroughly and legal action will be taken against them. We will leave no stone unturned. This should serve as an early warning signal for them to start remitting the funds,” he said. He said working with the office of the Director of Public Prosecutions (DPP), the anti-corruption body will seek an order to nationalise properties all embezzlers.
Earlier, Mr Hasunga said his ministry ordered Coasco to conduct an audit on all cooperative societies.
Coasco found out that until June 30, 2019, there was a total of 11,410 registered cooperative societies across Tanzania.
He said out of the number, 6,463 were found to be active while 2,844 were dormant. The remaining 2,103 could not be traced.
The audit covered a total of 4,413 cooperative societies. Out of the audited ones, it was only 303 - which is equivalent to 6.87 per cent - that received unqualified audit opinion (clean sheet).
Some 2,378 cooperative societies – equivalent to 53.89 per cent of the audited entities – received qualified audit opinion while 879 cooperative societies – equivalent to 19.92 per cent of the audited entities – received disclaimer opinion. A total of 853 cooperative societies – equivalent to 19.32 per cent of all audited entities – received adverse audit opinion.
Coasco audited a total of 38 national cooperative societies out of which it was only four that received unqualified audit opinion while three got adverse audit opinion. A total of Sh856.3 million is believed to have been embezzled from the three that received adverse opinion.