KNCU (1984) Ltd board dissolved

KILIMANJARO Native Cooperative Union 1984 Limited (KNCU (1984) Ltd) has scrapped its board for failing to fully exercise their duties, which plunged the Union into losses.

The decision was made by the Union’s Extra Ordinary Annual General Meeting (AGM) held here during the weekend.

In addition, the 106 members of the special AGM also approved and unanimously passed the removal of three executives of the Union for causing the loss.

The employees include Acting General Manager Mr Godfrey Massawe, Acting Finance Manager Mr Wilbald Lyimo and Manager related to farmers’ services Mr Wilbert Nyella.

The AGM was held to receive and discuss the report of a special commission which was formed by the government to investigate irregularities within Africa’s first and oldest cooperative union.

The decisions of the meeting, which were also largely based on the recommendations made by the team that conducted the investigation, also agreed and finally adopted the names of some members of the Union who, after being vetted and approved by the union’ AGM later on, will be entrusted with the responsibility of being the Union’s transition board leadership pending electing in office for the new board.

The chairman of the special probe team, Mr Denis Barongo from the Cooperative Audit and Supervision Corporation (COASCO), said that apart from other challenges, the commission of inquiry revealed the great weakness of the board and the management, failing to take decisions when needed, which he said contributed significantly to the big losses to the KNCU (1984) Limited.

“The weaknesses include the management’s failure to follow up on the organic coffee business certificate that had expired; this led to a loss of more than 500m/- for the Union after the organic coffee which had decreased its quality was sold at a lower price than projected earlier,” he noted.

Mr Barongo explained further that another defect was the Union management’s failure to organise training related to organic farming issues for farmers so that they (farmers) could produce coffee with good quality, a move which would give the farmers a good price in the market.

“The organic coffee farming education programme was aimed at providing education to farmers to avoid flaws that could cause the quality of organic coffee not to reach the market.