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{
    "id": 722986,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/722986/?format=api",
    "text_counter": 88,
    "type": "speech",
    "speaker_name": "Hon. Katoo",
    "speaker_title": "",
    "speaker": {
        "id": 199,
        "legal_name": "Judah Katoo Ole-Metito",
        "slug": "judah-ole-metito"
    },
    "content": "registered or incorporated SACCO society obtains a licence within one year of registration or incorporation. If a co-operative society fails to obtain its licence as prescribed, it shall stop using the words “deposit- taking”. That means it will invalidate the activities of the said SACCO and it will become an offence if they fail to comply. The amendment contained in Clause 3 is very important. I have an expert on SACCOs sitting next to me. I like it that he is listening and following very well. He will add value to this Bill. There is a New Clause 48A in Clause 3 which is proposed for insertion and gives the Authority powers to determine the suitability and propriety of every person proposed to act as a director or officer of a SACCO society. For one to be a director or an officer of any SACCO, the following has to be considered. It is found in New Clause 48A (2) (a-f). It reads: (a) “the financial status or solvency of the person.” You cannot be entrusted to manage other people’s fund when your financial status or solvency position is in doubt. (b) “the academic or other qualifications or experience of the person, having regard to the nature of the functions which the person shall perform. (c) “the status of any other licence or approval granted to the person by any financial sector regulator.” That is because there will be credit sharing information among several financial institutions. It will be known whether you have been licensed by any other financial institution to perform such functions and that will be taken into consideration. (d) “the ability of the person to carry on the regulated activity competently, honestly and fairly.” This is about financial matters and money for several members. It is prudent that the person managing is competent, honest and fair in the discharge of those duties. (e) “the reputation, character, financial integrity and reliability of the person. It is all about fairness, openness and accountability. (f) Any other material information that the authority may consider necessary.” If you go down to sub-clause 3, the Authority may consider necessary whether the person is competent. New Clause 48A(3) says: (i) “has contravened provisions of any law for the protection of members of the public against financial loss due to dishonesty, incompetence or malpractice by persons engaged in dealing with marketable securities”. Those are some of the other things that will be considered. (ii) “has been convicted or is being investigated in respect of an offence involving financial impropriety, fraud, corruption or economic crimes. (iii) was a director of a SACCO society which was liquidated, is under liquidation or has been place under statutory management.” I do not think it will be prudent for you to head another SACCO which is of a sound management position. It is also proposed that the person be checked whether he has participated in any business practice which, in the opinion of the Authority, was fraudulent, prejudicial to the market or public interest, was otherwise improper or would otherwise discredit a person’s method of conducting SACCO society business. It is all about the integrity and character of the person proposed as a director or an officer of a SACCO society, especially with respect to financial matters. There are several, but let me just mention one. It talks of whether the person has acted in such a manner as to cast doubt on the person’s competence or soundness of judgment. They are critical and important. Most important is New Clause 48A(4) which says: The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}