By Fatmata Jengbe
On Friday 18th September 2020, the National Cooperative Credit Union Association Sierra Leone (NACCUA-SL) ended its 6th Annual General Meeting (AGM) at the Young Women’s Christian Association (YWCA) Hall, Brookfields in Freetown at which ceremony, the chairperson of the Association, Mrs. Lilian Songo disclosed that 2019 was a good year for Credit Union Movements in Sierra Leone as six new Credit Unions joined the membership of NACCUA-Luawa Cooperative Credit Union, Kissy Tongi Cooperative Credit Union, Upper Bambara Cooperative Credit Union, Munafa Cooperative Credit Union, Kenema Teachers Credit Union and the Goderich Credit Union.
The AGM is the time when members converge to invoke the powers of the highest decision-making body of the Association including collective activities for information, education, entertainment and experience sharing through formal and informal means.
The chairperson informed that the Board and Management of NACCUA have continued to promote the affairs of the movement through regular meetings citing the four quarterly Board meetings and eight Executive Committee Meetings where pertinent issues affecting the movement were discussed and organized.
Mrs. Lilian Songo also enlightened that NaCCUA-SL is governed by five Board of Directors headed by herself as Chairperson, Rev. Samuel K. Sesay as Vice Chairperson from Kenema, Mrs. Mary Bundu as Treasurer from Moyamba, Mr. James Y. Bangura as Assistant Treasurer from Port Loko and Mr. Foday M. Kamara from Tawopaneh as member adding that the Supervisory Committee is made up of three members headed by Mrs. Victoria Pratt from Passionately Progressive CU, Mr. Jai Kaikai from Bo and Mr. Kelvin Conteh from Bombali and disclosed that mid last year, NACCUA hired the services of an Administrative Secretary named Alhaji M. Kanu who is in charge of the daily affairs of the Association.
According to the Chairperson, the AGM was supposed to be held in early April this year but that due to the outbreak of the corona virus pandemic, it was postponed to abide by Government regulations and commended Government for revealing that the country would have to accept and live with the pandemic by observing social distancing, frequent hand washing and wearing of face masks.
She continued that the Credit Union system delivers greater financial inclusion in Sierra Leone by enabling underprivileged people to have access to financial services by creating the enabling environment or conducive avenue to encourage savings as little as Le1, 000 a day as well as access to credit facilities at low interest rates and went on to articulate that Credit Unions are not for profit but rendering services to members at a fee.
She furthered that Credit Unions have grown in general performance from December 2018-December 2019, that their membership has increased from 8,429 -10,088, that savings have increased from Le 4,691,000,000-Le5,587,000,000, that share capital increased from Le.1,316,000,000-Le1,595,000,000 and that outstanding loan balance increased from Le6,130,000,000-Le6,278,000,000 and encouraged leaders to mobilize more members to join Credit Unions in the country intimating that at the Credit Union level, they have recorded growth in total assets for their members with Moyamba as the biggest Credit Union in the country as at 31st July 2020 with Le2,300,000,000 followed by Tawopaneh with Le. 1,460,000,000.
Mrs. Lilian Songo commended the Irish League of Credit Union Foundation (ILCUF) for its material and technical support to NaCCUA-SL citing the provision of an office space, a computer, desk and other office furniture to enable them effectively perform their work and informed that they have worked with ILCUF on several initiatives for Credit Unions such as putting systems in place underscoring that they now have information for all their members in the country, receive financial reports on time and working together to ensure that they introduce core banking system for Credit Unions.
On partnership, she revealed that NaCCUA is working with ILCUF Ltd to get other partners from Germany named the Savings Banks for International Cooperation (SBFIC) that has helped to revive their governance manual, Credit Union operational manual, training in micro-business and exposing the Administrative Secretary to The Gambia to learn from their Gambia counterparts stressing that SBFIC has shown interest to continue supporting their work.
The Chairperson went on to state that they appreciate Credit Unions that succeeded to organize their Annual General Meetings last year and encouraged those who did not to do so as law demands stating that for Credit Union scoring performance, NaCCUA has introduced the rating based on the performance of each CU and catalogued the criteria as organizing monthly Board Meetings, having a bookkeeper to prepare financial reports, progress in reducing portfolio risk, increase in savings, engagement with staff on offsite monitoring, having no delinquent leaders over 30 days and organizing AGMs.
She acclaimed the Cooperative Department in the Ministry of Trade and Industry, the Bank of Sierra Leone and other banks like the Rokel and Sierra Leone Commercial Banks for their support and urged all to continue to uphold the core international Credit Union operating principals that bind them of the value of democratic structures, service to members and social goals.
However, Mrs. Lilian Songo lamented that COVID-19 has affected credit unions as delinquency is going up and some of them are leaders stressing that delinquency affects the profitability and retards growth affirming that as NACCUSA leaders they are proposing to amend their bye-laws to make leaders who become delinquent in the credit unions be removed from their positions.
“Some of the people elected are not willing to sacrifice their time to serve those who entrusted them with leadership positions. Credit Unions need to stop this business of choosing leaders at the AGM without having done prior assessment of their intentions. Credit Unions need to embrace vetting processes to elect their leaders. I need not reiterate the need for Credit Unions to recruit qualified staff who are able to manage the affairs of our organization,” she underscored.
The chairperson also called for the review of their strategic plan for the next 15 months which they hope would help them serve their membership better, review loan and credit control, policy and procedures as well as introduce human resource policy to guide their member Credit Unions in recruitment, retention and remunerate staff and wished all productive deliberations.
Highlights of the AGM were introduction of guests and leaders, reading of minutes and action points, reading of the Annual Report, presentation of the budget, discussions on reports, resolutions, amendment of byelaws, human resource policy, loans and credit control policy and procedures as well as a strategic plan. The AGM was attended by leaders from various credit unions across the country and ILCUF Ltd staff.
Other dignitaries who made statements at the well-attended AGM included the representative of the Registrar of Cooperative under the Ministry of Trade and Industry, Mr. Saidu Bangura, the General Manager of ILCUF Ltd, Mr. Solomon Mwongyere and the Deputy Director of other Financial services, Ms. Esther Johnson from the Bank of Sierra Leone.
