Stop using courts to settle grievances - Credit Union members advised
The Hydro Co-operative Credit Union Limited (HCCUL) has held its 42nd and 43rd Annual General Meeting (AGM) at Akosombo in the Asuogyaman District in the Eastern Region with a call on members to seek internal redress for their challenges and conflicts rather than resorting to the law courts.
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Last Saturday’s AGM, which covered July to December 2021, 2022 and 2023 financial years, was on the theme: ‘’Building resilient hydro co-operative credit union in a competitive market environment’’.
The HCCUL established in 1971 is a financial institution owned, controlled and financed by the staff of the Volta River Authority (VRA) in March 1971 with a mission of helping members to attain lifetime financial freedom.
The credit union now has a membership of over 14,000, including VRA, GRIDCo and Bui Power Authority staff who form the majority. Other members include public and private workers, individuals, churches, and Small and medium-scale enterprises (SMEs), with total assets of over GH¢160 million.
Performance
The treasurer of the HCCUL Management Board, Edward Koranteng Offei, who read the financial statement at the meeting, declared total dividends of GH¢ 3,954,652.28, GH¢ 10,426,740.52 and GH¢ 11,163,065.89, making it a total of GH¢ 25,544,458.69 for July to December 2021, 2022 and 2023, respectively out of which 49 per cent was declared to the shareholders.
He explained that total assets growth of GH¢ 160,276,824.13 for 2022 went up to GH¢ 126,524, 020. 72 as of June 2021, with approximately 27 per cent growth over 18 months.
In the same way, liquidity levels rose from GH¢ 539,349.72 as of June 2021 to GH¢ 7,824,329.33 as of December 31, 2022, which registered a percentage of 1,350.6 per cent in the 18-month circle.
He also mentioned the significant growth of members’ savings, shares, reserves and net loans which enhanced the total growth of the union.
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The Chairman of the Board of Directors, Joseph Asare Keteku, in his address apologised to the entire membership for the delay in holding the AGM due to circumstances beyond the control of the board members.
He mentioned specifically a court case involving three members of the credit union, who took the leadership to the Somanya High Court on some issues and ended up placing an injunction on the holding of the AGM.
He, however, announced that the court considered the affidavit in opposition, statement of defence and statement of the case prepared by the board and reviewed by the union’s lawyers, in addition to an Affidavit of the Acting Registrar of Co-operatives and dismissed the application of the complainants, adding, ‘’go home and exhaust all the internal processes before coming to court’’.
Software
Mr Keteku noted with concern that due to increasing growth levels registered by HCCUL in terms of total assets and membership, the old software, CutSoft, had some challenges in managing the growth levels efficiently.
He said to resolve those challenges, new software (Core Banking and E-Banking) from NexTech Limited and Halges Financial Services dub SmartSuite and Korbah, respectively were procured and implemented successfully.
He, therefore, advised members to update their records to avoid any mishaps in the future. Mr Keteku also presented two awards won by HCCUL at the national level to the members.
Resolution of disputes
The Acting Registrar of Cooperative Societies in Ghana, Kwabena Apraku Yeboah, commented on what he described as a disturbing trend of members rushing to court with issues that could easily be resolved at the union level.
He, therefore, advised members of all credit unions in the country to try and exhaust the very elaborate provisions of their by-laws for the resolution of disputes as the law courts would waste their time and resources at the members’ own expense.
Emmanuel Oduro Darko, Goodwill Ambassador for Credit Union in Africa (CUA) and a Board Member of CUA said the Cooperatives Act allowed members to settle disputes through the court system, but that should be done through the Registrar of Cooperatives if even it became necessary, adding, ‘’Credit Union is a family business which is aimed at developing ourselves as members’’.
A seven-member Interim Management Committee (IMC), under the chairmanship of Vivian Mantey Nartey, was sworn in to steer the affairs of the HCCUL until December 2024.