01 Aug 2013

Parliament passed the Co-operative Societies Bill on July 31 through which government aims to resuscitate cooperative societies.

Responding to comments made by MPs during their debate, the Minister of Trade and Industry, Ms Dorcus Makgato-Malesu said they woud come up with regulations, especially to guard the board of directors on issues of corporate governance.

Ms Makgato-Malesu further said co-operatives could still succeed in a free market as they had done in other countries. The minister further said they had finalised their training centre and were working on the syllabus. Earlier in their debate, the MPs said various factors led to the collapse of cooperative societies countrywide, saying the most significant being the lack of proper management.

Selebi Phikwe West MP, Mr Gilson Saleshando said another factor was political interference saying people were put in management positions not because they had the skills and expertise, but for political reasons. He said co-operative societies could add value in the economy, saying the Selebi Phikwe Co-operative Society survived for a long time as members jealously protected it by giving it a market.

Ngwaketse South MP, Mr Peter Siele said co-operatives could improve the lives of all Batswana. He said government could encourage people to venture into societies such as housing especially as there was a scheme on public servants housing.

Mr Siele further said co-operative societies can also be used in out-sourced projects where former employees group themselves into a society. He also said they can play a role in economic development, diversification, employment creation and poverty eradication.   

For his part, Ngwaketse West MP, Mr Mephato Reatile said there was a society in Mabutsane which assisted people to access Botswana Meat Commission (BMC) by providing transport, saying its collapse has rendered residents destitute. He said resuscitating it would add value to BMC and in the process make the abattoir an ideal societal organisation.

Kgatleng East MP, Mr Isaac Mabiletsa said lack of political will led to the collapse of cooperative societies. He noted that in the past, the Botswana Cooperatives Union ran a wholesale giving credit to its members.

He said unfortunately members failed to honour their credit but the union did not have legal powers to take appropriate action hence it collapsed.  Mr Mabiletsa said programmes such as Ipelegeng could be replaced by cooperative societies.

The MPs further said management should be properly trained to ensure co-operative societies succeed. ENDS