**3.3 Leadership and governance**

262 Urban Development

the number prescribed in the society Bylaws. It appears that leaders of this organization shun away from questioning by members especially on the use of members funds. Further, it was observed that, the issue of Auditing and Inspection are not given much serious attention by the SACCOS, the Cooperative Department and COASCO. Here we recommend that the Board, which is the organ responsible for running of the society, to make sure that the Bylaws are adhered to and the three meetings are held. This is for the sake of making the society alive and allowing members to get an opportunity to make their contributions for better running of the society to their advantage. Revising and transforming the Cooperative Societies Act and its

In view of land use planning project in the neighborhood, Himo District Council as a local authority initiated this project immediately after the area had been declared to be township in 1986 and consequently extension of the boundary was compulsory. When the planning boundaries for Himo Township were established in 1986, some villages which were registered, under the Village and Ujamaa Registration Act of 1975 in Tanzania, were engulfed into the planning area. Prior to this plan these villages had administrative authorities and the land allocation and control vested with Village Authorities who were entitled to decide about land questions including subdivision and allocation. Kitotoloni village is among the ones engulfed into the planning area. During preparation of land use plan project for this area, there was no explanation on how the villagers would be incorporated into urban fabric, including compensation for their land. Most landholders resisted land use planning and have continued parceling land for selling or allocation to their families and clans. They are also erecting permanent buildings despite the instructions given by the district council to stop doing so. People used to access land in the settlement by

**acquisition Men Women Total Percentage**  Inheritance 132 10 142 88.8 Gift 0 1 1 0.6 Buying 13 4 17 10.6 Total 145 15 160 100

Results presented in Table 2 show that 142 (88.8%) of property owners got land through inheritance, one person got land from his former employer as a gift (0.6%), and 10.6% bought parcels of land from original settlers and occupation of land by virtue of absence of landlords was not recorded in the area. This has a connotation that land occupiers at Kitotoloni village are strongly attached to customary land tenure system, which is one type of land declared as per Urban Planning Act of 2006, it has to be futile. Women (9.4%) compared to men (90.6%) are seen to be the least involved in property acquisition. This could be caused by patriarchal dominance in accessing property and ownership rights in

African families including Chagga community in Kilimanjaro Region, Tanzania.

Percentage 90.6 9.4 100

better implementation seems to be a an enormous demand.

different mean as presented in Table 3 below.

Table 3. Land Acquisition at Kitotoloni Village

**Means of** 

Source: Field Data (2008)

**3.2.3 Government based interventions in land use planning process** 

Himo SACCOS has three tier type of leadership with different mandates as per their constitutional set up. This structure comprises of SACCOS' members, Board members and Supervisory Committee. Board members are elected by members during the Annual General Meeting (AGM). Members are supposed to make decisions during the Annual General Meeting where their voices are expected to be heard. The supervisory committee which comprises Manager, loan officer and Cashier who performs daily activities of the organisation. The supervisory committee officials are also members but in most cases are employed by SACCOS based on their area of expertise. The structure seems to be commendable but there is a problem in regard of the AGM. According to the interviewees, the Board is not complying with the by-laws because the number of meetings supposed to be held annually is not met as previously explained. In addition, knowledge on land and house mortgages observed are not clearly known to enable them understanding both formal and informal properties, which can be mortgaged by members to the cooperative society.

By June 2011, Himo SACCOS had 289 members, of which 121 are females and 168 are males. Members of this organization are involved in different activities which enable them to recover the cost of loan once borrowed. These activities include small-scale business persons, crop farming and animal husbandry. The organization is open for any member to join provided she/he is living in Himo neighborhood as guided by the organization bye-laws.

Cooperative Development and Land Use Planning Dynamics in Sub-Saharan Africa:

**3.4 Cooperative development and land use planning disputes** 

respect when they fail the Auctioneers take the reading role.

their residents and therefore improve township productivity.

**3.4.2 Conflicts related to selling member properties within Himo SACCOS** 

**3.4.1 Dispute settlement mechanisms for Himo SACCOS** 

days this is recorded as bad debt;

repay back the loan with penalties,

processes include;

A Quest for Socio Solidarity Economy and Partnership in Sustainable Urban Development 265

tenure arrangements in Himo has resulted in conflicts, which manifest in physical clashes between customary and statutory rights in the process of land use planning. Under the current Land Policy of 1995 in Tanzania one may have access to land through either a granted right of occupancy or by customary right of occupancy. Whereas the former is issued by the head of state or his authorized subordinates, under the later system the law deems customary land owners as lawful occupiers (the deemed right of occupancy). However, since colonial times up to the present, the courts have undermined the ''deemed right of occupancy'' under which customary land tenure is based, and upheld the superiority of documentary evidence, title deeds, certificates of occupancy and all the paraphernalia of granted rights of occupancy. This can be critically interpreted that, the courts are of the opinion that customary right of occupancy is inferior to the granted right of occupancy once the settlement expands. This puts more questions, as to how the customary land right will be respected as a way of gaining status which shall enable the urban poor to access financial sources to enable them contribute towards national growth and poverty reduction efforts especially among cooperative members and SACCOS' management?

Remarkable mechanism appears to have been established by Himo SACCOS in resolving disputes. Common disputes observed are connected with the Loan Repayments. When members fail to repay is when things starts to come to a collision course. The established

i. Serve a notice to a member. Some conditions are set on how to execute this. From 1-30 days, the member is called by phone and be informed the need to recover the loan. From 31-60, the member is served a letter explaining to pay as a follow-up. From 61-90

ii. Second step is physical follow-up. In this regards physical visit of the member's business unit is made. If found is informed and is requested to voluntarily come and

iii. Thirdly, if the member is not able to come and repay at the society, attachment and realization of the Securities is declared and auctioneers are contacted and involved; iv. The search for the Guarantor is committed and letter and physical visit is done. In this

In the whole process, nowhere the court of law is being involved. This seems to be detrimental for the cooperative organization development in terms of ensuring cost recovery once the member borrows. This also happens in land use planning process, as no where the court can be involved in the process of land use planning unless there is a conflict between subordinates. This act as a disincentive to community and or association members who are motivated and joined together to improve their settlement and income levels of

One of the conditions for accessing a loan from Himo SACCOS and other cooperatives in Tanzania and elsewhere include being an active member who contribute shares, pay fees,

There are categorically two types of members observed during this study. They include the founder members and ordinary members. The founder members are the ones who brought the society into life and the ordinary members are the ones who have been registered day to day upon meeting certain criteria. According to **Rule 10** of the SACCOS' by-laws, ordinary members can be admitted if she/he has met the following conditions; first, if she/he has attained the age of 15 years and above; if she/he is of sound mind; if she/he has fully paid up shares (i.e. 10 shares @ TShs 5,000/=). There are other more requirements related to the behavioural aspect of a person. One important thing noted is that, one cannot become a member if she/he does not reside within the Ward of Makuyuni that is made of three villages of *Himo, Makuyuni and Lotima*.

Himo SACCOS had a capital meriting to Tanzania1\*Shillings 70 Millions (i.e. 47,000 USD) by June 2011 from Tanzania Shillings 37,000 (i.e. 25 USD) in the year 2006 when it started. The main sources of funds include loans from Banks, member entry fees and selling of pass books. Other sources include selling the constitutions to members and income resulting from penalties imposed on members who delays loans recovery. Reluctance of leaders for change including barring chances to youth to lead the organization was observed to be a key challenge. The Founder leaders, it was observed, they take the organization to be their property and are reluctant to allow any changes which seems to jeopardize their leadership, a situation which deters development of the organization. It was also noted that these leaders do not want to transform to new leadership style and adapting to technology nor preparing for adaptation and acquiring new skills required to enhance organizational performance. In fact this observation is part of the contribution to current conflict in the cooperative. One may wonder how the founders are always re-elected in the Annual General Meeting. This appears to follow personal integrity, popularity and convincing power, which puts away the youth who aspire to contest but lacks those characteristics to win the votes.

Some conditions are set to ensure the amount of penalty on a member is recovered as a way of disciplining members by the organisation. For a member who delays loan repayment between 1 to 14 days after planned period, she/he is supposed to pay 2% of the total loan received. Likely, for a member who delays repayment between 15 and 30 days has to pay extra payment of 4% of the total amount borrowed. These conditions were made and agreed by members themselves during their Annual General meetings. The enforcement of these conditions enabled the organization to increase its income and therefore its economy. In addition, a total of TShs. 280 Million loan, from Uchumi Bank (100m) and CRDB Bank (180m), were borrowed by the organization with 16% interest. Loans from Uchumi Bank were recovered successful until year 2009 from the base year 2006. Loan from CRDB until June 2011, was not fully recovered by the organization. What has been observed and perceived by members is that loans from banks make them poorer. It is important if the source of income can be internal sources rather than depending on bank loans which charges high interest rate.

In view of land use planning, key players include local authority and landholders who were denied right to be part of decision making process in formalizing land rights in township authority through involvement in land use planning, cadastral survey and being granted right of occupancy, culminating in unnecessary land use conflicts. Some of the conflicts are related to re-negotiation of the customary land ownership in the face of the ignored right of the landholders, in view of social and political changes. The undermining of indigenous

<sup>1\*</sup> I USD was equivalent to 1500Tshs by June 2011

There are categorically two types of members observed during this study. They include the founder members and ordinary members. The founder members are the ones who brought the society into life and the ordinary members are the ones who have been registered day to day upon meeting certain criteria. According to **Rule 10** of the SACCOS' by-laws, ordinary members can be admitted if she/he has met the following conditions; first, if she/he has attained the age of 15 years and above; if she/he is of sound mind; if she/he has fully paid up shares (i.e. 10 shares @ TShs 5,000/=). There are other more requirements related to the behavioural aspect of a person. One important thing noted is that, one cannot become a member if she/he does not reside within the Ward of Makuyuni that is made of three

Himo SACCOS had a capital meriting to Tanzania1\*Shillings 70 Millions (i.e. 47,000 USD) by June 2011 from Tanzania Shillings 37,000 (i.e. 25 USD) in the year 2006 when it started. The main sources of funds include loans from Banks, member entry fees and selling of pass books. Other sources include selling the constitutions to members and income resulting from penalties imposed on members who delays loans recovery. Reluctance of leaders for change including barring chances to youth to lead the organization was observed to be a key challenge. The Founder leaders, it was observed, they take the organization to be their property and are reluctant to allow any changes which seems to jeopardize their leadership, a situation which deters development of the organization. It was also noted that these leaders do not want to transform to new leadership style and adapting to technology nor preparing for adaptation and acquiring new skills required to enhance organizational performance. In fact this observation is part of the contribution to current conflict in the cooperative. One may wonder how the founders are always re-elected in the Annual General Meeting. This appears to follow personal integrity, popularity and convincing power, which puts away the youth

Some conditions are set to ensure the amount of penalty on a member is recovered as a way of disciplining members by the organisation. For a member who delays loan repayment between 1 to 14 days after planned period, she/he is supposed to pay 2% of the total loan received. Likely, for a member who delays repayment between 15 and 30 days has to pay extra payment of 4% of the total amount borrowed. These conditions were made and agreed by members themselves during their Annual General meetings. The enforcement of these conditions enabled the organization to increase its income and therefore its economy. In addition, a total of TShs. 280 Million loan, from Uchumi Bank (100m) and CRDB Bank (180m), were borrowed by the organization with 16% interest. Loans from Uchumi Bank were recovered successful until year 2009 from the base year 2006. Loan from CRDB until June 2011, was not fully recovered by the organization. What has been observed and perceived by members is that loans from banks make them poorer. It is important if the source of income can be internal

In view of land use planning, key players include local authority and landholders who were denied right to be part of decision making process in formalizing land rights in township authority through involvement in land use planning, cadastral survey and being granted right of occupancy, culminating in unnecessary land use conflicts. Some of the conflicts are related to re-negotiation of the customary land ownership in the face of the ignored right of the landholders, in view of social and political changes. The undermining of indigenous

who aspire to contest but lacks those characteristics to win the votes.

sources rather than depending on bank loans which charges high interest rate.

I USD was equivalent to 1500Tshs by June 2011

villages of *Himo, Makuyuni and Lotima*.

 1\* tenure arrangements in Himo has resulted in conflicts, which manifest in physical clashes between customary and statutory rights in the process of land use planning. Under the current Land Policy of 1995 in Tanzania one may have access to land through either a granted right of occupancy or by customary right of occupancy. Whereas the former is issued by the head of state or his authorized subordinates, under the later system the law deems customary land owners as lawful occupiers (the deemed right of occupancy). However, since colonial times up to the present, the courts have undermined the ''deemed right of occupancy'' under which customary land tenure is based, and upheld the superiority of documentary evidence, title deeds, certificates of occupancy and all the paraphernalia of granted rights of occupancy. This can be critically interpreted that, the courts are of the opinion that customary right of occupancy is inferior to the granted right of occupancy once the settlement expands. This puts more questions, as to how the customary land right will be respected as a way of gaining status which shall enable the urban poor to access financial sources to enable them contribute towards national growth and poverty reduction efforts especially among cooperative members and SACCOS' management?
