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Legon Co-operative Credit Union holds Annual General Meeting

Samuel Roberts

Oct. 29, 2020

Accra Oct. 29, GNA — The management of the University of Ghana Co-operative Credit Union has indicated its resolve to transform the Union into an model institution that would offer credit unions a new narrative.
“The vision is to become a model of Excellence for Credit Unions in Africa. Our mission is to provide diverse financial and advisory services to all members with excellence.” says Dr. Samuel Nana Yaw Sampson, Board Chairman.
In a report by the management Board during the Annual General Meeting at the University of Ghana, Dr. Sampson informed that the success of the industry was crucial because it would improve the livelihood of the people as they continue to save with them.
Dr. Sarpong informed that the Credit Union was expanding with members in the Volta and Eastern regions of Ghana with plans in reaching to other parts of the country. He therefore called on organizations to come on board and allow their members enjoy the benefits the Union offered.
He said, regardless of the prospects of the Union, the outbreak of the Covid-19 pandemic had a toll on their activities and affected their output, which made the economic indicators reported in the year 2020 mid-year budget review fall below projection for the year under review.
"The GDP also plummeted below the target of 7.6. For this reason, growth estimates are expected to fall by 0.9% from targeted 6.8%. Interest rates were generally favourable, but that affected returns on investments in the financial market." Dr. Sarpong said.
The Chairman observed that the Legon Co-operative Credit Union also experienced reduction in borrowings for planned projects, increased withdrawals towards consumables and survival, reduction in interest income and increased unforeseen expenditures.
Dr. Sarpong indicated that the pandemic also negatively affected the modest gains made from fixed deposits and treasury bills.
He however informed that, regardless of the challenges, the Union made gains compared to the previous financial year, hinting that the total assets of the Union grew from GH¢125,740,820.01 in 2019 to GH¢151,020,481.94 in 2020 which represented a 20% increase.
Dr. Sarpong hinted that, as a short-term measure to encourage borrowings from the Union, and to lessen the burden on members due to the Covid-19, the Board reduced interest on loans from 2% to 1.8% per month for the last quarter of the year.
He said savings increased from GH¢76,269,936.91 in 2019 to GH¢91,375,095.05. “In light of the above, the Union made a modest surplus of GH¢9,122,521.60 in 2019 representing 4.45%. Also membership increased from 7,005 to 8,206.”
Dr. Sarpong therefore indicated that the board would pay 48% as dividend on shares, which was a good indication of doing business with the Union.
In terms of the Union’s Corporate Social Responsibilities (CSR), the organization supported the University of Ghana Hospital with Personal Protective Equipment (PPE) to ensure the safety of frontline health officers in their fight against the Corona virus.
The meeting, among other things considered and adopted the statement of accounts of the Union for the year ended the 30th June, 2030 together with the reports of the Board, Loans Committee, Supervisory Committee, Manager and Auditor's thereon.
The meeting also confirmed the Minutes of the 2018/2019 Annual General Meeting, adopted resolution, presented and approved the 2020/2021 budget Statement.
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