The Oguaa Teachers’ Cooperative Credit Union (OTCCU) Limited, has held its 33rd Annual General Meeting (AGM) and declared a net surplus of GH₵38,610.27 for the 2016 financial year as against GH₵ 66,018.07 in 2015.
The figure represents a decrease of GH₵ 27,407.8 compared to the performance of the previous year.
The Credit Union also made a total income of GH₵ 857,279.00 at the close of the 2016 financial year as against GH₵ 758,644.85 in 2015.
It recorded a total of GH₵ 818,668.73 operating expenses as against GH₵ 692,626.78 in the previous year.
Ms Sarah Quagraine, outgoing Chairperson of the Board of Directors who announced this, attributed the decline in performance to the compulsory three per cent deduction by the Controller and
Accountant General’s Department on savings and loans of members.
She said a total of GH₵ 65,430.27 were charges on members savings for the year under review while the Union continued to loose its members by 36 per cent annually on savings deposits.
This, she said was taking a chunk of the Credit Union’s finances meanwhile efforts to resolve the problem by writing to its mother body had proved futile.
The Board Chairperson said whereas the total savings for the period under review stood at GH₵ 5,231,968.00,an increase of 89.7 per cent over the year, GH₵ 4,450,075.00, representing 85 per cent was withdrawn by members.
“The Union was left with only GH₵ 781,893 to be invested as compared to loans granted, it is clear that savings withdrawals are about four times the loans granted. This needs to be urgently addressed,” She added.
Ms Quagraine said a total of GH₵ 1,846,812.00 loans were granted in 2015/2016 as against GH₵ 1,146,700.00 in 2014/15.
She said since the Board took over in 2012, shares of the Union had grown from GH₵ 22,306.42 to GH₵ 4,239,310.77 in 2016.
She appealed that the minimum shareholding rate should be increased from GH₵ 100 to GH₵ 300 to the members to increase capital base of the Credit Union.
The Board Chairperson therefore called on the members to purchase more shares to improve upon their dividends.
Nana Kwesi Agyepong, General Manager of the Credit Union Association, in a speech read on his behalf commended the OTCCU on its feat and advised against complacency.
He expressed concern about the loan delinquency, which had become a major problem confronting Credit Unions and urged defaulters to pay back for others to enjoy the facility.
He said the focus of Credit Unions was on human development and urged managers to adopt good policies as well as customer care that would help improve individual deployment.
He said it would be unwise for teachers to retire and become wretched, adding that joining Credit Unions could facilitate the construction of their own houses and pay the school fees of their kids.
He therefore urged the members to increase their membership drive to buy more shares which was key to making profit.
A five- member new Board of Directors, three member loans Committee and a three- member supervisory Committee were sworn into office with a call on them to work hard with commitment and loyalty to move the Union to higher heights.