CREDIT UNIONS CAUTIONED TO SAFEGUARD SAVINGS OF MEMBERS 17 -02 - 2018

                                                                                                                                      
The Board Chairman of the Navrongo Teachers Cooperative Credit Union Ltd. [NTCCU] Mr. Isaac D. Amuriyaga, has called on sister Credit Unions in Ghana to adhere to strict corporate governance and prudent financial management of the savings and investments of their members.

Mr. Amuriyaga made the call at the Union’s 18^th Annual General Meeting [AGM] held in the Kassena-Nankana Municipal capital of Navrongo over the weekend. It was under the theme; “Credit Union; Where Dreams Are Fulfilled”. He noted that since the promulgation of the Cooperative Credit Union Legislative Instrument, LI 2225 which brought all such unions under the supervision of the Bank of Ghana, it was a must for all unions to operate within the dictates of the LI so as not to fall victim to any sanctions thereof. 

The NTCCU started operations on 31^st January, 1997 and was initially composed of only teachers. However, its membership was later opened to many more individuals and groups such as market women, business men and other professionals. Members make savings over a specified period and become eligible to access loans for business and other purposes. It is worthy to note that, the existence of the union has actually boosted economic activities in and around the Navrongo area.

The Board Chairman pledged that under his leadership, the Board will continue to assess the current state of the Union and formulate strategic projections and policies targeted at improving the fortunes of the Union for the benefit of all members. Meanwhile, he singled out the Manager of the Union Mr. Solomon Kantogjei for praise saying the officer had ensured the pragmatic and prompt implementation of Board decisions which positively affected operations over the period.

In his annual report to the AGM, Mr. Amuriyaga revealed that membership increased from 3,680 as at June 2016 to 4,279 by end of 2017 representing an addition of 599 new members. He added that the current savings of the Union stood at 3,782,787.76 Ghana Cedis from the previous year’s figure of 3,221,568.97 Ghana Cedis indicating a rise of 17.4 percent. Other indicators such as share capital mobilisation also rose to 290,756.99 Ghana Cedis from a previous amount of 224,553.85 Ghana Cedis. The Assets and Capital base of the Union also grew from GH₵3,759,885.59 to GH₵4,745,880.50 by end of 2017. 

He however reported that of 1,224 loan applications received during the period, 46 of them were rejected due to reasons including bad payment of previous loans, dumping or insufficient savings. Some also got rejected because applicants simply failed to have conference with the loans committee. On staffing, he disclosed the Union had 13 staff comprising eight permanent office staff and five field officers.

The Union spent a total of 350,000.00 Ghana Cedis on construction of its office complex’s second floor, a fence wall and a dual culvert for easy access into and out of the premises. Challenges encountered during the reporting period included frequent partial withdrawals, scanty savings, poor attitude towards loan repayments as well as poor customer care by some staff but Management promised that, all will be done to make the Union more viable and attractive to all. 

Group Chief Executive Officer of Credit Unions Association of Ghana [CUA] Mr. Nana Kwesi Agyapong in his remarks, hinted that in order to make credit union operations universal, a system was being fashioned out and will be launched on 30^th March, 2018 which will allow for inter-credit union transactions. He said there were also plans to set up and operationalise a credit union share branch in each central business district of Ghana to create convenience and improve accessibility.

Mr. Agyapong also observed that the youth were not attracted to do business with credit unions and that, CUA was ready to introduce a mobile banking App for transactions and other cash transfers. Contrary to views held by some people that credit unions were meant for only the poor, he stressed that the unions were far better than the traditional banks because ordinary members have the opportunity to attend and personally make suggestions at AGMs. 

The CEO however sounded a caution that, many credit unions in the country will soon be merged due to their inability to meet certain critical requirements set by the Bank of Ghana. The merger he emphasised, was to safeguard the deposits of members while ensuring sanity in their operations. The caliber of unions to be affected by this move will mainly include faith-based and community credit unions. He added that a list will soon be published and names as well as other merger information will available for the consumption of the public.

He charged the Board and staff of the NTCCU to work even harder to better the lives of its members and other clients because history had it that, the first Credit Union to ever operate in Ghana started on 2^nd September, 1955 in Jirapa in the Upper West Region. This he noted, should be a source of pride to all unions up north to guard this feat jealously through excellent performance year by year.

At the close of the AGM, Management of the NTCCU presented a 2,000.00 Ghana Cedi cheque to the Catholic Church in Navrongo in response to an appeal for donations for a priest to undergo surgery.