Kiva, the microfinance organisation, has closed its relationship with its DR field partner Fundaci?n San Miguel Arc?ngel, Inc. according to an item on the Kiva website. 'In early 2009, Fundaci?n San Miguel Arc?ngel's executive team uncovered a far-reaching internal fraud that cost the foundation heavy losses in terms of their portfolio, earnings and borrower confidence. The perpetrators of the fraud have been fired and the current management has spent much of the past six months trying recover from the heavy hit they sustained as an institution. In late July 2009, Kiva received a letter from FSMA stating their intention to wind-down their portfolio and cease operations. In the letter they stated that they are unable to continue to operate due to the losses they have sustained. As such, in the next few months they will take the necessary steps to execute a cessation of operations.........The internal fraud suffered by FSMA affected not only their ability to repay their creditors (including Kiva lenders), but also their ability to track with certainty the amounts disbursed and repaid by their borrowers.' Please read:
Kiva - Dominican Republic > Fundaci?n San Miguel Arc?ngel, Inc. (FSMA)
Comments from some of the lenders here:
Kiva - Loans that change lives
I learned about this from someone who lends money to Kiva for DR projects (he isn't a DR1 poster otherwise he could report this himself). His first notification was that one of his loans had gone into default. Since the woman concerned had already paid 5/6ths of the loan on time he thought this was strange - further investigation revealed it was not the fault of the borrower but of management in the field partner organisation, FMSA, who had committed a fraud.
It should be noted that this in NO way reflects either on the borrowers (groups of Dominican women in micro-entrepreneurial enterprises) or on the other field partner which Kiva uses in the DR, although doubtless there will be some unfortunate fallout.
You'll see from the links above that this first came to light several months ago. I have yet to read anything about this in the DR newspapers (although I could have missed it) & more troubling is that if you go to FMSA's website there is no information about this:
Fundacion San Miguel Arcangel
Personally, I'm a believer in micro-entrepreneurial loans & Kiva has a great repayment record with very few defaulting. But, when one of their field partners falls down on the job, then people need to know about it, so that they are fully informed. Many of the people who loan to DR groups are frequent visitors to the DR, like the person who informed me.
I checked with a Mod. before posting this, but it didn't feel right to sit on it.
Kiva - Dominican Republic > Fundaci?n San Miguel Arc?ngel, Inc. (FSMA)
Comments from some of the lenders here:
Kiva - Loans that change lives
I learned about this from someone who lends money to Kiva for DR projects (he isn't a DR1 poster otherwise he could report this himself). His first notification was that one of his loans had gone into default. Since the woman concerned had already paid 5/6ths of the loan on time he thought this was strange - further investigation revealed it was not the fault of the borrower but of management in the field partner organisation, FMSA, who had committed a fraud.
It should be noted that this in NO way reflects either on the borrowers (groups of Dominican women in micro-entrepreneurial enterprises) or on the other field partner which Kiva uses in the DR, although doubtless there will be some unfortunate fallout.
You'll see from the links above that this first came to light several months ago. I have yet to read anything about this in the DR newspapers (although I could have missed it) & more troubling is that if you go to FMSA's website there is no information about this:
Fundacion San Miguel Arcangel
Personally, I'm a believer in micro-entrepreneurial loans & Kiva has a great repayment record with very few defaulting. But, when one of their field partners falls down on the job, then people need to know about it, so that they are fully informed. Many of the people who loan to DR groups are frequent visitors to the DR, like the person who informed me.
I checked with a Mod. before posting this, but it didn't feel right to sit on it.