Cooperative societies want autonomy
Onalenna Kelebeile | Tuesday June 21, 2016 15:27
He however noted that many cooperative societies continue to be liquidated and placed under the care and leadership of the department of cooperatives under the Ministry of Investment, Trade and Industry.
“Our belief is that with the support, guidance and leadership of the department, cooperative societies should strive to do well but many societies have been liquidated under their leadership. We therefore, applaud government for coming up with a transformation strategy to encourage cooperative societies to be autonomous,” he said.
Venson said that they will however continue to seek advice and guidance from the department of cooperatives but this does not mean that cooperative societies are forced to take their advice.
“We will assess it and decide if the advice will benefit the society. The department should not run the cooperatives because this will show that they do not embrace the autonomy that the transformation strategy seeks to achieve,” he added.
He further noted that the association called Botswana Cooperatives Association is already in place as an apex body and serves as the mouthpiece of the cooperative societies hence it is the one that should be utilised. “The association should be the one we run to when we are faced with obstacles,” he added.
He explained that last year the society developed a five-year strategic plan as one of the key priorities outlined in the cooperative transformation strategy. He said the strategy encourages societies to transform from their social oriented institutions to business oriented cooperatives with a human face at the same time with a vision to make the societies autonomous, vibrant, competitive and profitable.
He highlighted that Selebi-Phikwe cooperative society that was registered in 1972 experienced challenges that posed a serious threat to its profitability and sustainability in the past recent years. This led to the demise of the consumer goods business portfolio and the financial constraints led to the closure of its retail shop.
Venson said when the management board was elected in 2012 the society had debts amounting to over P4 million.
“We then saw the need for the society to re-invent and reposition itself such that it remains relevant and competitive in the changing business environment,” he added.
He added that they are pleased that they managed to pay up all the debts and the society is now operating smoothly with a steady income of P181,000 per month from rentals and this is exclusive of other income derived from interests from the banks.
He said they engaged private auditors to prepare financial statements for the last three financial years. He said the decision was reached after the department of cooperatives made a resolution not to audit for societies that are financially stable.
Venson noted that their achievements include the fact that the society is now registered as a multi-purpose cooperative and no longer a consumer cooperative.
He also said the department of lands and surveys has given them an offer letter for the Botshabelo plot which needs to be paid P195,000 in order to be given a title deed. The society has also managed to have its by-laws developed and approved.
He indicated that their new strategic plan has identified key areas such as property development that will ensure that the society optimises returns from existing property, acquire new property and also develop their undeveloped plots. He added that through this strategy they want to purchase property from Botswana Housing Corporation or any other property developer as well as kick start warehouse expansion in Botshabelo.