Tanzania VP Orders Tighter Co-op Audits to Combat Embezzlement

• Tanzania's Vice-President Dr. Emmanuel Nchimbi has directed COASCO to conduct more frequent audits of co-operative societies.
• The 'Protect Co-operatives, Choose Integrity' campaign aims to promote transparency and accountability while tackling corruption and embezzlement in co-operative societies.
• The government has identified assets worth 1.008 trillion Tanzanian shillings across the country, including produce storage warehouses, value-addition processing plants, and trucks for transporting farmers' produce.
• The value of produce handled through co-operatives has risen by 16.12 per cent from 4.2 trillion Tanzanian shillings in the 2024/25 season to 4.9 trillion Tanzanian shillings in the 2025/26 season.

Strengthening co-operatives depends on accountability, honesty and integrity among members, leaders and co-operative executives alike.

Tanzania's Vice-President Dr. Emmanuel Nchimbi has directed the Co-operative Audit and Supervision Corporation (COASCO) to conduct more frequent audits of co-operative societies. This move is aimed at strengthening accountability, curbing embezzlement, and enhancing transparency in the sector. The directive comes as part of the government's efforts to combat corruption and ensure that co-operatives operate with integrity.

The 'Protect Co-operatives, Choose Integrity' campaign, recently launched by the government, is seen as a crucial step towards achieving this goal. The campaign aims to promote transparency and accountability while tackling corruption and embezzlement in co-operative societies. By working closely with stakeholders, including public and private institutions, development partners, and the Tanzania Cooperative Development Commission (TCDC), the campaign seeks to eliminate criminal practices within co-operatives.

The government's commitment to encouraging farmers, livestock keepers, and fishers to join Savings and Credit Cooperative Societies (SACCOS) is also a key aspect of this initiative. By providing loans that support members' activities and strengthen investment in agriculture, livestock keeping, fisheries, and processing industries, co-operatives play a crucial role in national development.

The government has completed the identification and valuation of co-operative assets across the country. This exercise has identified assets worth 1.008 trillion Tanzanian shillings, including produce storage warehouses, value-addition processing plants, and trucks for transporting farmers' produce. These investments are creating jobs and supporting sectors such as education and health.

The Cooperative Society Asset Evaluation Report and the Cooperative Insurance System, launched by the Vice-President earlier, are also expected to strengthen transparency in the sector. The report will enable the TCDC to oversee co-operative assets more effectively, ensuring that they remain productive and generate greater benefits for members and the country.

Minister for Agriculture Daniel Chongolo has emphasized the importance of good governance in the cooperative sector. By working closely with the government, the Tanzania Federation of Cooperatives continues to strengthen good governance and ensure that co-operative societies operate professionally and achieve expected productivity.

The value of produce handled through co-operatives has risen by 16.12 per cent from 4.2 trillion Tanzanian shillings in the 2024/25 season to 4.9 trillion Tanzanian shillings in the 2025/26 season. This significant increase is a testament to the sector's growth and contribution to national development.

The government recognizes the co-operative sector's importance in providing loans, supporting members' activities, and strengthening investment in agriculture, livestock keeping, fisheries, and processing industries. By encouraging farmers, livestock keepers, and fishers to join SACCOS, the government aims to promote economic empowerment through agriculture, markets, financial services, investment, and crop value addition.

The Cooperative Day celebrations at the 2026 National and International Nane Nane Exhibition have provided a platform for showcasing the achievements of co-operative societies. The exhibition has also highlighted the innovative contributions of co-operative societies in improving livelihoods and supporting communities.

Lawyers should watch for potential compliance exposures arising from tightened co-op audits, which may lead to increased scrutiny of financial transactions and asset management within cooperative societies.

Source: Original reporting via Daily News