Allegations of funds misuse rock Public Officers’ Co-op board
Tsaone Basimanebotlhe | Monday February 9, 2026 09:10
Insiders have revealed to Mmegi that the society has failed to host its annual general meetings (AGMs) as required by its constitution, something that has created a loophole for maladministration to mushroom. The current board has remained in office for three years, an arrangement critics describe as illegal. Meanwhile, internal divisions have deepened within the society. In late December, the board suspended several committees after they petitioned it for allegedly disregarding the society’s bye-laws. The suspended committees include the investment, credit, and supervisory ones. What worries members most is that the supervisory committee is responsible for monitoring if the board is in line with the constitution, to protect interest of members, advise, and to ensure that it does not make errors. Instead of convening the mandated AGM, the board is accused of opting to call a Special General Meeting (SGM), a move that has further inflamed tensions. According to a source, the board is now being accused of operating without a proper mandate. Moreover, it is alleged to have overspent and misused the society’s funds.
“Recently, they failed to account for more than P2 million,” the source said. “Committees are supposed to advise the board, but that role has been undermined. As a result, the matter has been escalated to the Ministry of Trade and Investment. In the meantime, members cannot even access loans; the situation is dire.” In a letter written to Department of Co-operative Development (DCD) leaked to this publication dated October 28, 2025 reads; “the Supervisory Committee of the BPOSACCOS writes to formally report the Management Board’s persistent non-compliance with the Society’s Bye-Laws, disregard for regulatory guidance, and conduct that has become prejudicial to the interests of members and the reputation of the Society”.
“More than a month ago on 25th September 2025, more than 20 members (66) submitted a valid requisition for a Special General Meeting (SGM) in accordance with Bye-Law 18.5(b), which provides that: 'A Special General Meeting shall be held within 14 days of receipt of a written request from at least one-fifth or 20 members whichever is less'.” According to the letter written by Dr Mmoloki Gabatlhaolwe, the clause imposes a mandatory duty on the Management Board to cause the meeting to be held within fourteen days of receipt of the request. However, the Supervisory Committee respectfully requested the director of DCD to invoke Section 65 of the Co-operative Societies Act to convene and preside over the SGM.
“Cancel or nullify the actions of the “Member Outreach Meeting. Direct the secretariat (through the CEO) to immediately issue the SGM notice. Investigate the conduct of the Management Board under Section 66 of the Act,” the letter reads. The letter reveals that the situation at BPOSACCOS now represents a serious governance breakdown where the Board has placed its interests above those of members and disregarded lawful oversight. Also, stating that the shareholders (members) have already requested intervention. Furthermore, it says despite this, the management board has deliberately refused to issue the notice or to facilitate the meeting, and has instead chosen to disregard both the Bye-Laws and the recent advice of the Co-operative Development Department’s Regional Office after members reported the Management Board to DCD. In one of the letters was written by the supervisory committee before it got suspended that was addressed to chairperson management board, states; “ the supervisory committee further advises that, in the spirit of transparency and financial accountability, the board must issue notices to members whenever the society incurs expenditure for external representation, especially foreign events indicating: the purpose of the event and expected benefits to the Society; the names and roles of the representatives; and the estimated and approved budget.”
The letter says the disclosure aligns with the cooperative principles of accountability, openness, and prudent financial management, and with Bye-Law 21.1(a), which directs the board to “observe in all its activities the Act, the Regulations, these Bye-Laws and prudent business practices.”
While on board composition and elections, the letter states that the board currently violates Bye-Law 22.1, which prescribes an odd number (up to 9) of board members. Following the resignation of one member, the board has failed to fill the vacancy as required under Bye-Law 21.1(j). “The Elections Committee should therefore be resuscitated immediately to regularise Board composition and prepare for any forthcoming elections, including at the SGM, in accordance with Bye-Law 20.0–21.0. Supervisory Committee Advisory and Next Steps Pursuant to Bye-Law 27.3 and the Co-operative Societies Act, 2013, the Supervisory Committee advises the Board as follows: issue the SGM Notice immediately, ensuring members receive written notice no later than 7 October 2025, to meet either computation standard.”
Called to comment, the chief executive officer, Agang Oabona said, “we are still behind with audit, hence we have not called on the AGM. I am in a meeting, will call back”.