Closed Field Partners

[Guest]

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[howard]

Yes, thanks, Ben, and I too await the return of DRC with interest.

[dgandhi]

Okay, I got a response from a Kiva staffer about SEED:

Hi Daniel,

I want to begin by apologizing for the delay in our providing you with an update regarding SEED's above average delinquency rate.  To ensure that we can provide quicker updates to all lenders, we are working to create better systems of notification.  Right now, we are going to post the following information provided below on SEED's partner page, so all lenders can obtain this information.

As you know, each business on Kiva.org's website today is posted by one of Kiva's 90+ Field Partners in 42 developing countries. A Field Partner is an independent microfinance institution that has a history of lending to the poor for a social purpose. They screen each entrepreneur, post his/her profile on the Kiva website, and administer your loan.

Kiva has been in partnership with SEED for 10 months. Following a period of low responsiveness from SEED's Management, Kiva sent a qualified Fellow to SEED in the summer of '07 to investigate and monitor loan handling and repayment. Upon discovering that some entrepreneurs were not receiving the full amount of the loans raised on Kiva, we immediately halted new loans to SEED. Soon after learning of these discrepancies, Kiva retained the services of a local accounting and financial services firm to conduct an audit. These findings violate Kiva's policies and we have terminated our relationship with SEED. Further, Kiva has retained a Kenyan law firm to pursue legal options and determine the extent of loan recoverability. Kiva's Board will review this matter in early 2008, and we will provide further information at that time.

We hope you realize that our audit uncovered a true exception to the norm; the vast majority of our Field Partners administer your loans with the highest integrity. Kiva will continue to audit Field Partners to monitor the integrity of your loan and to make our website a model for transparency in international development. Throughout 2007, Kiva has continued to improve its field partner selection process and field monitoring program. While we can never guarantee that organizations won't commit fraudulent behavior, we believe the improvements we have made to our overall partner due diligence program substantially reduce the risk of partner fraud.
 
To help inform your choice of Field Partner as well as entrepreneur, we have launched a new feature on the site that helps you evaluate the Field Partner's performance in your lending decision. See www.kiva.org/about/partners/ <http://www.kiva.org/about/partners/> for details.

Thank you for your understanding and support of Kiva. Please be assured that we are monitoring the situation with SEED and are committed to providing a fully transparent report of our findings. The legal investigation process moves slowly, and Kiva management is committed to providing a fully accurate report at its' conclusion.
 
Sincerely,

Liz Harmon

So hopfully all the lender pages will be set up with explanations of any out of the ordinary activity in the near future.

[KivanSteven]

Thanks for posting daniel...that is very pertinent and informative news...when selecting MFIs to work with they cant win every time...not everyone is as honest and forthright as Kiva is and demands of its partners...its all a learning process though and with failures also come improvements.

[wthepoo]

I thought I'd revive this old thread...

am I just the last one to notice or has the partnership with Regional Economic Development Center (REDC Bulgaria) been closed very recently?

Here's what is says on the Field Partner Page (http://www.kiva.org/about/aboutPartner?id=3):

Dear KIVA lenders, In 2005 the REDC in Sliven, Bulgaria partnered with KIVA to give short term loans to business owners in Sliven, and more specifically in the gypsy ghetto in Sliven. During our partnership with KIVA we gave a total of 37 loans. Many of these businesses were able to expand because of our loans and were very grateful that they had the opportunity to fund their businesses through our partnership. As there is for any new process, there was a learning curve in the beginning stages of our lending. In September of 2006 we funded our first 6 loans, 3 of which went on to be defaulted. But as we started working more closely with community leaders we sought their advice and they were able to guide us more closely as we distributed our no-collateral required loans and returns were much more successful. Additionally, in our eagerness to give loans to businesses, we gave two loans to business owners in a town 3 hours away from here based on a reference. Although we trusted the reference, it was very difficult for us to keep track of the loans and we were not able to recover all of the money. We have tried contacting the owners but have been unsuccessful. Although our partnership with KIVA has come to a close, we continue to work with businesses in Sliven to help them expand and develop new strategies. Currently our organization has 12 businesses operating in our rent-subsidized business incubator and we are working on a project to help craft makers more easily display and sell their products at our facility. We will continue working with established businesses and will seek out new ways to help new entrepreneurs accomplish their goals. Nikolay Sidjimov REDC Sliven, Bulgaria

Best wishes,
Wolfgang.

[wthepoo]

And again reviving the thread...

I haven't seen a post about it, so here it is:

Status update on Friendship Bridge from Kiva Staff on November 3, 2009: Friendship Bridge‘s partnership with Kiva was closed in November 2009 without prejudice after one year of inactivity. Friendship Bridge determined that it was better served providing loans to its entrepreneurs through funding sources other than Kiva

I wonder which funding sources these are and why.

Best wishes,
Wolfgang.

[howard]

We had the same wording in August 2009 to announce the closure of AlSol, Chiapas, Mexico, but never had any further info.

Howard

[greg3912]

Firendship Bridge's 2008 Combined Financial Statements state that loans from Kiva amounted to $194,000 and $82,533 on 12/31/08 and 12/31/07, respectively (Note #4 on Page 15).

Doesn't look as if Kiva was a significant portion of their financing. Thay also secured a $1,000,000 low interest loan in 2007 that becomes payable in 2012.

Bad debt write-offs of 20% do seem significant, however.

Greg