Mzuzu Consumer Cooperative Society has posted a K5.1 million surplus to be shared among its 34 members after over 25 years without sharing dividends.
At an annual general meeting held in Mzuzu over the weekend, the cooperative’s board member Henry Trinidad said the group was stuck in challenges such as non-reporting of finances since 1992.
Trinidad said it was only in 2018 when the members appointed new board members who are helping out on matters.
“People took the cooperative as personal property and they thought it was not necessary to account to the members. So, the cooperative deteriorated so much that in 2018 members appointed new board members,” he said.
Legal counsel for the cooperative Wesley Mwafulirwa said poor accounting practices have been among contentious issues.
Mwafulirwa then suggested that the cooperative engages an auditor and start working hand in hand with the Ministry of Trade for smooth operations.
The cooperative is also battling with a court case in which one of the members alleged that he owns one of its buildings.
The cooperative, which started around 1970, was initially a shop which sold fruits, vegetables and spices.
The cooperative has assets worth about K100 million and aspires to become a fully-fledged real estate agent.