Don’t fall prey to banks – CUA

Mr. Siddique (right) presenting the highest shares award to Michael Osafo

Mr. Siddique (right) presenting the highest shares award to Michael Osafo

The Ghana Co-operative Credit Unions Association (CUA) has advised Ghanaians not to fall prey to financial institutions that promise flamboyant and unrealistic interest rates.

This is because such quack financial institutions usually use high interest rates as a decoy to swindle unsuspecting investors.

Supervising Manager Human Resource of CUA, Mohammed Saani Siddique, gave the advice here at the weekend during the 15th Annual General Meeting of ST. Joseph Co-operative Credit Union Limited (ST. JOCCU).

It was under the theme “Member education and financial literacy for increased benefits.”

Mr Siddique commended the Bank of Ghana for taking prompt action to sanitise the financial sector by taking over and amalgamating some banks and streamlining the operations of some suspicious financial schemes.

He said in spite of challenges facing the sector the credit union movement still looked healthy.

Mr Siddique, therefore, called on credit union members to constantly remind themselves of the bye laws and operating policies for products and services which were reviewed periodically to meet emerging and changing trends.

That according to him would help them to appreciate the policies, their impact on the members and the credit union as a whole as well as guide them to know their rights, responsibilities, benefits and how they could be accessed smoothly.

He lauded the Board of ST. JOCCU for their excellent performance this year and encouraged the members to acquire more shares, save and pay their loans regularly.

The ST. JOCCU board chairperson, Madam Afia Agyapomaa, said the total asset of the credit union grew by 13 per cent from GH¢1,950,577.51 in 2017 to GH¢2,236,150.90 in 2018 while total savings increased by 14.48 per cent from GH¢1,097,086.34 to GH¢1,282,826.19.

She noted that total shares went up by 21.19 per cent from GH¢245,807.32 to GH¢311,894.32 whereas capital adequacy reduced from 40.21 per cent to 39.28 per cent even though that was higher than the CUA required standard of 15 per cent, explaining that the reduction was due to some members migrating out of the Tema metropolis.

The income of the credit union according to her, increased from GH¢395,988.07 to GH¢435,321.96 representing an increase of 9.04 per cent while within the same period expenditure went up from GH¢263,835.84 to GH¢312,049.66.

This Madam Agyapomaa explained resulted in their surplus reducing from GH¢132,152.23 to GH¢123,272.30

The Board of Directors of ST. JOCCU declared a dividend of 25 per cent which translates into a total amount of GH¢30,818.08.

Three of the members were honoured for distinguishing themselves in savings, share acquisition and prompt payment of loans.

The programme coincided with the dedication of a newly acquired vehicle for the union by Rev. Fr Silas Sapaty, Assistant Parish Priest of ST. Joseph the Worker Catholic Church.

The union donated a cheque for GH¢1,000.00 to the church.

The manager of ST. JOCCU, Mr John E.K. Tawiah, said the union which began its operations on May 15, 2000 with 15 members now has 1,053 members from ST. Joseph the Worker Catholic Church and communities in Tema and its environs.

He said as part of their corporate social responsibility 198 members had this year been registered free of charge under the national health insurance scheme.

From GODFRED BLAY GIBBAH, Tema.

 

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