New act to revamp metshelo

The Monitor Business has learnt that Cabinet considered the amended Act on February 6, paving way for its tabling in Parliament.Last week, trade and industry minister, Dorcas Makgato-Malesu revealed that among its improvements, the new Act would reduce the minimum number of members required for motshelo registration from 50 to 20. The change is expected to enable more groups to approach the Commissioner for Co-operative Development for official registration, thus benefiting from government oversight, guidance and safety nets.

In addition, both metshelo and cooperative societies will be armed with stiffer penalties, ranging from P500 to P10, 000 in instances where members violate society constitutions or the Act itself.  The most common violation for metshelo involves members absconding with funds or diverting them away from mutually agreed objectives.