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ECG credit
Union approves hostel project
Ho, March 22, Ghanadot/GNA- The Volta Electricity Company of
Ghana (ECG) Employees Co-operative Credit Union is to
provide hostel facilities for tertiary students in the Ho
Municipality as a subsidiary venture.
The Board has accordingly acquired plots of land for the
project in readiness for the project.
The venture was unanimously approved at the 10th Annual
General Meeting (AGM) of the Union at Ho on Friday.
By a vote of 59 against 32 the AGM however blocked a
proposal by the Board for members to retain 50 percent of
interest due on their savings for investment.
Total interest on savings for the financial year, 2005-2006
stood at 251.6 million cedis.
Delivering the Financial report for 2005-2006, Mr Justin
Justice Dandjo Board Chairman said the Union's total
investments stood at 733.4 million cedis and cautioned
members that their failure to get back their interests was
weakening the financial base of the Union.
He said the "Total or part withdrawal of savings can be
likened to a house owner winning sand around the foundations
of his building. The end result of his action will be the
collapse of the mansion".
Mr Dandjo said the total interest and dividends paid out to
members in the past four years stood at 636.3 million cedis,
which in addition to 251.6 million cedis to be paid this
year would bring total interest and dividends paid out to
888.0 million cedis.
"Can you imagine what this amount can do for the Union if
retained"' he queried.
He said total income for the period stood at 616.8 million
cedis while net surplus was 108.0 million cedis.
In his keynote address, Dr Smart Yeboah, Tema Regional
Manager of the ECG urged the Union to step up membership
drive so as to "minimise the risk factors for each member".
"You also need the increased capital so that you can
effectively spread the investment net wider. You must at all
times ensure that capital growth is a multiple of the annual
GDP rate for sustainability", he advised.
While commending the increase in savings, which stood at 34
percent, Dr Yeboah cautioned, "savings withdrawal is an item
that needs to be watched in order not to bankrupt the scheme
prematurely".
"The important thing is that whatever we personally need
must be based on our own investment priorities rather than
for whimsical purposes. A want must never precede a need as
wants are based on proclivities", he cautioned.
GNA
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