Mr William Hutton-Mensah, Accra East Regional Director of the Electricity Company of Ghana Limited (ECG) on Friday called on operators of the Electricity Company of Ghana (ECG) Credit Union Association (CUA) to be wary of taking loans from commercial banks.
He observed that banks were in business to make profit and would not lend out money below their base rates, therefore members of the Company's Credit Union should be guided as such.
Mr Hutton-Mensah gave the warning at an Annual General Meeting (AGM) of the Volta Region ECG credit union in Ho.
He asked members to remain committed to the credit union system and should go for loans from the banks only when necessary.
He expressed regret that many people were withdrawing there membership of the Association and advised such people to re-consider their decisions.
Mr Hutton-Mensah urged Board of Directors of various credit unions to periodically organize educational programmes on financial management and how to start up and manage business enterprises for members to guide them to put loans taken into productive use.
Mr Fidelis Bazaanah, Deputy General Manager, Technical Services of CUA, appealed to Bank of Ghana to expedite action on the passage of the proposed credit union bill into law to create the enabling environment for the unions to operate.
He maintained that the credit union system was one sure way of deposits mobilization and wealth creation that needed good environment to strive to reduce the unemployment rate in the country.
Mr Justice Danjo, Board Chairman of the Volta Region ECG CUA, said loans to members rose from GH¢39,217.04 in June 2001, to GH¢247,309.37 in June 2007.
He said despite the achievements, the Union continued to face perennial savings, membership withdrawals and “loan delinquencies”.