Mwingira, Mary J.2021-10-182021-10-181978Mwingira, M. J. (1978) The applicability of financial planning and control functions to manufacturing cooperative societies in Tanzania: the case of garment manufacturing and leather products societies in Dar es Salaam and Moshi. Masters dissertation, University of Dar es Salaam, Dar es Salaam.http://41.86.178.5:8080/xmlui/handle/123456789/16136Available in print form, Eat Africana Collection, Dr. Wilbert Chagula Library,(THS EAF HJ2186.T3M9)1.1 Definition of the problem and its significance: There is an apparent contradiction between the role cooperative societies in Tanzania are expected to play and what is actually happening. While the major objective of establishing the societies is “to promote the economic wellbeing of the members - an objective which can only be achieved through efficient operation and implementation of stipulated functions, — the societies have proved to be a burden to the members and the society. Instead of increasing productivity and advancing the country against capita ism most of the societies have been sustaining heavy losses and have turned out to be exploitative instruments in the eyes of tile members in particular and the society in general 0 Furthermore although historically there has been an increasing trend in the quantity of the societies, it has been shown that "this quantitative increase has not been accompanied qualitative improvement" Marketing cooperatives which were established so as to get rid of the Asian middlemen and thus 1. Goran Hyden "Cooperatives in Tanzania Problems of Organization page 12 paragraph 3. enable the farmers (members) to get more returns from the sale of produce were more burdensome to the members because marketing charges rose. In the case of consumer cooperatives and especially cooperative shops, incidences of shortages of capital thefts, losses and final winding up of the societies have been common. Production cooperative societies have also been characterized by inefficient operations and in their case too many stop operating because of proving to be economically unviable. In summary therefore it can be concluded that acts of thefts, fraud, general mismanagement and as well as incidences of poor record keeping and accounting systems seem prevalent in all types of cooperative societies. Most reports of auditors and inspectors of the societies stress the need for the societies to exercise greater internal control and to ensure proper administration of societies! funds. The contradictions mentioned above were noted as far back as 1966 when the Presidential Commission of Enquiry was set to probe into the activities of the cooperatives and marketing boards. The commission revealed that the principal deffects of the societies were: 1. Uninformed Membership- which reflects among other things, that books were not being kept in order and the societies were not preparing financial statements and thug enabling the members to know how the societies were running. 2. Lack of both sufficient and qualified personnel to manage the societies. This reveals the societies could not be efficiently managed by people with ability and knowhow in operating business under takings 3. Lack of democracy - which reflected that members in the societies did not have equal voice in decision making. This situation further lead to the members not enjoying equal benefits from the societies. 4. Political interference in the establishment of the societies and their registrations. This meant that societies were formed as a result of political mobilization and during this time no consideration was taken in respect of the economic viability of the societies 0 Consequently many societies were after short duration, proven to be uneconomically viable and had to wind up or continued to operate at losses. Despite some attempts to solve the problems that were the causes of the above mentioned deffects, there has so far not been any great and noticeable change in the cooperative societies today. Contradiction between the intended objectives and the activities of the societies still prevails; Recently local newspapers have reported of great problems which seem to face newly established consumer cooperative shops which were the product of “Operation Maduka” It is alleged that most of the shops which were established were inefficiently run. Most of them are characterised by working capital shortages, maintaining poor records and lacking the required pe personnel who can run the shops efficiently. In respect of production cooperative societies, it is common to find that financial institutions the banks hesitating to finance the societies because the societies fail to provide the required data which are useful in deciding on financing projects. The institution finds out that most of the societies are economically unviable and even when they are pressurized to finance them they record such funds under bad debt because they entertain very little hope of getting the funds back. Significance: Being one of the underdeveloped countries of the world, Tanzania is struggling hard to achieve economic development as rapidly as possible. Cooperative undertakings in the country are considered as one of the basic instruments in achieving this object, 170. Therefore, in order to contribute towards the achievement of the national objectives it is necessary that the prevailing contradictions have to be eliminated. Once they are established, cooperative societies must not only continue to survive, but they must also grow and improve in quality. And if the societies are to survive r grow and improve in quality then, the acts of fraud? thefts and the losses sustained as a result of inefficient operation must be avoided. The avoidance or elimination of the above basically requires proper financial planning and control. Statement of objective: As of late it has also been realised that in order to ho effective in promoting the economic wellbeing of their members and the society in general, cooperative societies have to change their structure. They have to multipurpose and production oriented societies. In an attempt to eliminate capitalism, cooperative societies have to control some of the major means of production in the country. The objective of the dissertation was to find out and to analyse the financial planning methods and control techniques are applicable in some of the already existing production cooperative societies. The main intention was to assess the extent to which the planning methods and techniques propounded by financial management theorists are being appliedenCooperative SocietiesBudgetDar es SalaamTanzania(Region)MoshiTanzania (district)Thesis