Twenty Saccos Locked From Taking Deposits

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International Freedom of Expression Exchange Clearing House (Toronto) 29 June 2011 press release The National Union of Somali Journalists (NUSOJ) is concerned with the increasing political control and manipulation of media outlets in Somalia by both the Transitional Federal Government of Somalia (TFG) and the Al-Shabaab Islamist movement in order to provide powerful propaganda to muster support for their wars. The government is increasingly using Radio Mogadishu as a propaganda tool not only against Islamic extremists but also political opponents within the TFG with the aim of destroying the reputation of individuals deemed critical of its "political agenda." Radio Mogadishu journalists and presenters have been discouraged from reporting on Ministers or parliamentarians who are not politically allied with certain dominant political groups, through the use of the Minister of Information's powers over Radio Mogadishu.

The Nation (Nairobi)

Mwaniki Wahome

29 June 2011

Nairobi — Customers of 20 savings and credit societies with front office operations will have to get new providers after their saccos failed to renew their deposit-taking licences.

Out of these, 13 saccos have notified the Sacco Societies Regulatory Authority (Sasra) that they were exiting deposit-taking. “The Authority has directed the Saccos to cease deposit-taking services with effect from June 18,” Sasra said in advert Wednesday.

Seven saccos failed to apply to for the licence by the June 17 deadline and the regulator has written to them to stop taking deposits. Conducting deposit-taking business without a licence from Sasra constitutes an offence under section 23 of the Sacco Societies Act punishable by a fine of Sh500,000 and jail term of up to three years for its officers.

The new regulations aims to bring management of the deposit-taking saccos in line with international best practices to protect deposits. Sasra chief executive Carilus Ademba said this supervision would ensure saccos adhere to operational regulations and prudential standards.

Sasra said yesterday out of the 219 saccos, 199 had reapplied for licences . Only 44 have completed the vetting process and acquired the licences.

Sixty-seven Saccos have been issued with letters of intent after preliminary assessment of their applications, while 154 are still being vetted.

There are 219 deposit-taking Saccos that account for Sh148 billion out of Sh195 billion in total assets and Sh96 billion out of Sh127 billion in member deposits of 3466 active Saccos by end of December 2009.

Saccos operating FOSA services hold 75 per cent of total assets and member deposits. Saccos are required to have a Sh10 million capital. The regulations provide a transitional period of four years.

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Twenty Saccos Locked From Taking Deposits