Gloomy future for Phikwe cooperative as BCL folds
Onalenna Kelebeile | Friday October 28, 2016 16:30
Mine employees, who will be jobless by the end of the month, contributed P2.9 million monthly towards SACCOS. Their counterparts at Tati Nickel Mine, who are facing the same predicament, contributed over P700,000 monthly.
Chairman of the Society, Thatayotlhe Mpule told a special general meeting convened by Department of Cooperatives that at the end of September this year over P61 million was disbursed as loans to members of which P45 million was borrowed by BCL employees while P11.2 million was lent to Tati Nickel employees. This was followed by Morupule branch with P3.9 million worth of loans and over half a million pula by Mupane Mine employees.
SACCOS also has an amount of over P20 million as loans that are yet to be paid back by members while P1.9 million loans are yet to be recovered from Tati Nickel Mine employees. For those who have been saving without loans, the amount stands at P22 million. SACCOS has P9.4 million as cash in hand.
SACCOS also invested in some projects such as the plan to build a shopping complex and a filling station which is a joint venture with Motswedi SACCOS in Lobatse. Mpule said they have already appointed a project manager to facilitate the project. He added that despite the situation, the project cannot be abandoned more so that already P5 million has been set aside for it.
Meanwhile, members suggested that those who do not have loans with the society should be given a priority and be given their savings back so that they can utilise the money to start a new life.
One member of the Society suggested that those who are heavily indebted should be directed to a high-risk account. One member said the society must sell some of its assets and clear off all members’ loans even at the commercial banks. “Rather stop investment projects and channel the money to clearing members’ debts without even asking for funds from anywhere,” he said.
They, however, felt that the society should not close down, instead those who still have the capacity to maintain their shares even without jobs should continue to contribute while those who cannot afford to pay be given their dues.
Department of Cooperatives’ regional chairman, Motsumi Ketlhaotswe had earlier on said that they convened a meeting last week with SACCOS board members because of the concerns over what would become of Selebi-Phikwe as a result of BCL Mine liquidation.
“It was necessary because majority of the society’s membership are BCL employees hence we could not just ignore the situation. We are empowered by the Cooperatives Act to also convene this meeting with members,” he added. He said he does not see it advisable for members to withdraw their membership at the end of the month when termination of their employment effects.
He also said the director of cooperatives needs members’ input in making any decision of whether to close down the society or not.
“There is no need for you to terminate your membership because your membership is determined by an individual’s share capital. Shares take precedence over whether you are employed or not. You can even maintain your membership upon retirement. This means that your membership ceases when you withdraw your shares from the society,” he added.
BCL employees form a majority of the SACCOS membership as they stand at 2,078 followed by Tati Nickel with 545, Morupule with 330, Mupane with 55 and Botash with 68.
If BCL and Tati Nickel employees withdraw their membership it would deal a major blow to the society as they constitute 2,623 leaving only 453 members in the society.
Ketlhaotswe added that according to the 2015 audit report SACCOS had net assets standing at P22.4 million and made a profit of P2.8 million.