01.05.2005 Business & Finance

Some Credit Union offices for closure

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Aflao (V/R), May 1, GNA - An unspecified number of Credit Union branch offices have been listed for closure in the Brong Ahafo Region. Mr. Frank Adua, Deputy General-Manager of the Cooperative Unions Association (CUA), announcing this, cited bad and unfaithful financial management dealings in the offices, threatening the solvency of credit unions in the region.

He was addressing the tenth Annual General Meeting (AGM) of the Ketu District Teachers Credit Union (KTCU) on Saturday at Aflao. "Contributions and other funds collected at these offices do not get to the main offices at all or in the right amount," he said. He advised against proliferation in branch offices and acquisition of large office accommodations, in view of lack of the requisite staff to man them or the associated monetary burdens. Mr. Adua appealed to members to avoid rampant withdrawals of their contributions, but to rather go in for loans so as to keep the unions strong.

He commended the performance of KTCU over the years, but bemoaned the situation in which only half of the 900 teachers in the district are members of the union, and called for a vigorous membership drive. Mr. Adua said the unions are important for the growth of individual members and must ensure their continuous stability and security.

Mr. Peter Attisu, KTCU Management Board Chairman, said the union is financially vibrant, with membership savings jumping from about 284 million cedis in 2003 to about 571 million or 101.1 percent in 2004. Membership loans also picked from 290 million cedis to about 488 million or 68.6 percent, while interests on Loans and Savings also saw 115 and 97.6 percentage leaps respectively under year of review. Liquid investment portfolio also hit about 220 million cedis mark or 737.4 percent in 2004 from a low 26.2 million in 2003 and a 288 percent upward performance in the Net Capital Surplus.

Mr. Attisu asked KTCU members to avoid the undue pressure for loans, and also cautioned that only latest pay slips would be allowed for loan applications.

He said the union so far enabled 40 teachers on further education to secure admission fees, adding that the union has also applied for a 200 million cedis Central Facility Finance (CFF) loan for women in the union.

Mr. Attisu said the new office acquired by the union is being refurbished.

Mr. ELota Lafoneku, Board secretary, asked members to always keep all personal records intact for future references. May 01 05

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