Dar Es Salaam, Tanz - SNHU Academic Archive - Southern New ...

39community in that area, their low incomes cannot meet high amounts of entrance fees,high value of shares and high amounts of deposits.Other observations were:(a) External SACCO s ha d by-law s bu t i t wa s no t busines s oriente d an d role s an dresponsibilities of members, managemen t committe e members , staf f and managerswere not defined, which needed to be updated;(b) There was lack of members and management education/trainin g because they cannottell what are their rights, obligation, roles and responsibilities;(c) They practice efficient monitoring of its operations bu t they don't have any guidingpolicies;(d) Accounting syste m is not computerize d and staff s ar e compute r illiterate , but theyhave all necessary accounting tools that facilitate manual accounting procedures;(e) Loan s reimbursement s wer e no t effectivel y monitored , a s borrower s wer e no trepaying full amoun t of their installments as agreed. There were no list of loans inarrears were produced in regular basis. Portfolio at risk (PAR 90) for over 90 day thatwas required to reach a maximum of 5% was as high as 17.4%;(f) Externa l SACCOs had no proper safe for keeping money;(g) The equity base is moving in the right direction. Share s are refundable accordin g toSACCOs' la w and rules . Externa l SACCOs ha s t o b e prepared , i n any time, toanswer positively to members looking for their shares;