07 Apr 2019

Babereki Savings and Credit Cooperative Society (SACCOS) management board has been urged to diversify the cooperative society’s income streams.

In his keynote address at Babereki SACCOS annual general meeting (AGM) on April 6, Department of Cooperative Development acting director, Mr Boniface Tsheko said it was essential for Babereki SACCOS management board to explore available income generating avenues to augment interest received from loans and banks.

“This is not to say that we should pursue profits at the expense of members’ quality service,” he said.

The AGM themed: SACCOS - Gateway to financial independence was meant for members to interact with each other, discuss progress of the society and map the way forward on their society’s operations.

Mr Tsheko implored Babereki SACCOS members to professionally discuss matters affecting their cooperative society without fear or favour, stressing that "a general meeting is statutorily the supreme authority of the cooperative society."

He said SACCOS cultivated a savings culture on members.

“I can, therefore, attest to the fact that indeed SACCOS is the gateway to members financial independence.”

For SACOSS to meet its objectives, he said members needed to be assured that their savings were protected from abuse and mismanagement.

Mr Tsheko said there continued to be unpleasant trends in the governance of cooperatives, especially SACCOS where members funds were misappropriated with impurity.

He said Babereki SACCOS’s performance had also not been impressive, saying it might hinder the society to meet its objectives.

For the past two financial years that Babereki SACCOS had been audited, Mr Tsheko said the society had been realising losses of more than P345 000 for the 18 months ended April 2017, which grew to more than P544 000 in 2018.

The performance, he said, was not satisfactory and could lead to the collapse of the society.

Therefore, he advised that it should be reversed at all costs by applying corrective measures to retain members trust and confidence.

“It is my wish that Babereki SACCOS reverts to profitability and also be able to achieve its mandate,” he added. ENDS