Credit union loan defaulters to be prosecuted

Ho, June 15, GNA - Mr Stephen Dzorkpata, Board Chairman of Ho Municipal Teachers' Cooperative Credit Union Limited on Thursday gave an ultimatum to members who had defaulted in payment of their loans up to June 30 to show " positive loan repayment action or face legal prosecution".

He expressed concern about the low rate of loan repayment from 15 per cent in 2005 to 75.5 per cent in 2006. Mr Dzorkpata gave the directive at the union's 11th Annual General Meeting under the theme "Savings and Investment - Bedrock of Wealth Creation" at HO.

He noted that the credit union concept was growing like "a wild bushfire" and to sustain it required the commitment of members to repay loans granted to them.

Mr Dzorkpata advised members to change their attitude and make credit union obligations a priority at the end of every month. Madam Rosemond Keteku, Ho Municipal Director of Education expressed concern about default in loan repayment among teachers who were role models and responsible in society.

She underscored the importance of co-operatives and urged members to renew their commitment to the union for mutual benefits. Mr Alex Adu-Donkor, Volta Regional Cooperative Officer said despite all criticisms, co-operatives remained a vital tool in poverty reduction in society and appealed to members to repay their loans for other members to benefit.

He advised the Board of Directors of the union to ask loan contractors to sign a bond to forestall default in payment of loans. Madam Beauty Bansah, Loan Committee Secretary of the union said loans for payment of school fees was the highest than transfers and for building projects.

In a resolution, the union increased the minimum savings from 100,000 cedis to 150,000 cedis and the minimum shares from 200,000 cedis to 500,000 cedis.

Every member agreed to pay 100,000 cedis for the early completion of a section of the union's office complex.