An audit conducted into the company led into the suspension and later firing of all those implicated.
TALGWU Secretary General Rashid Mtima told journalists that despite the removal of the officials, further investigations are also underway by state security agencies.
“In 2018 TALGWU administration found out that there were challenges in the management of our microfinance company and we directed the board to take actions including conducting an audit,” he said.
He elaborated further saying since 2016 they have managed to oversee 130 court cases, 52 have been ruled where the union won 47 and 31 are still in various courts across the country.
The Secretary General said in 2018 the union oversaw the issue of government workers who were fired for having standard 7 education and were reinstated.
He added that since the current TALGWU leadership entered into power, in 2016 it found the construction of a commercial building which is now underway.
According to Mtima the union in collaboration with Trade Union Congress of Tanzania (TUCTA) fought for the scrap of new rules for pension which was issued by the government.
In 2018, the Capital Markets and Securities Regulatory Authority (CMSA) said it has approved an application by Tanzania Local Government Workers Union (Talgwu) Microfinance to raise capital through Dar es Salaam Stock Exchange (DSE).
Talgwu which is the trade union for local government workers in Tanzania targeted to sell six million shares at 1,000/- per share in order to raise 6bn/- for its newly established microfinance institution.
The aim of establishing the microfinance was to offer financial services to the trade union’s members, who mostly are working at district, municipal and city councils.