Phikwe miners SACCOS accounts frozen
Onalenna Kelebeile | Friday December 7, 2018 13:51
SPM SACCOS has been facing operational challenges following the BCL and Tati Nickel Mines closure in 2016 and had membership drop from 2,280 to the current 694, thus seriously affecting its cash-flows that threatens its survival.
In a bid to save and maintain the Society, the Department of Cooperative Development conducted two consecutive audits for 2016 and 2017 and a subsequent inspection for the period up to August this year.
This was meant to determine the extent of cash-flow challenges faced by the Society.
Recently the deputy Director of Cooperatives, Boniface Tsheko convened a special general meeting to update members on the challenges and status of the Society.
Members were informed that the Society’s cash reserves have drastically fallen hence the need for belt-tightening. The principal cooperative auditor, Motsumi Ketlhaotswe explained that the operational and administrative challenges have been brought about by the decline in revenues while most of the fixed costs such as salaries, utility bills and rent remained intact.
“This is why some of the strategies included staff retrenchments where personel was reduced from 18 to 11 after the mine closure,” he said in an interview.
He indicated that some sections of the Cooperative Societies Act had to be invoked such as convening a special meeting to appraise members on the situation where it was agreed that necessary steps have to be taken for the Society to survive.
“SPM SACCOS still has a future, especially because some of its branches are fully operational. Members also appreciated that although the Department of Cooperatives Development ought to encourage independence and autonomy, they also have to balance that with keeping checks and balances on all cooperative societies for purposes of compliance with the Act,” he said.
A seven-member interim committee was appointed during the special general meeting instead of the usual nine as the director add two of his officers to the five appointed independently to make them seven.
Ketlhaotswe said the interim committee is expected to come up with strategies on how to resuscitate the declining resources of the society. Amongst them, is the fact that a restructuring exercise would be carried out to ensure effectiveness of the Society.
“Going forward, the interim committee would consult with the staff members on cost-saving measures, review policies and other governing instruments of the society, including loan policy, travel policy and bye-laws to serve members’ interest.
They would also build up the statutory reserve fund with a view to pay out members’ savings for those who are not indebted to the society and improve on the issuance of loans to members as well as work to recover all delinquent loans in any cost effective manner back to the society. Though all loans were suspended with immediate effect, short-term loans were exempted and the society will continue to pay out funeral claims.
He added that although a painful step to freeze the bank accounts was taken while the society is still being assisted with strategies to revive its cash-flows the arrangement for reopening them will be done.
“Those who still owe the society must make their own arrangements to settle their debts because it is the money they owe that is required by others in the form of their savings,” he said.
He added that his department will not shy away from giving advice where necessary to ensure the society complies with the Act.
SPM SACCOS was registered by BCL, Tati Nickel, Morupule and Mupane employees in 2001. It failed to comply with the ACT that requires it to hold Annual General Meetings without fail but the last AGM they held was in 2005 hence they were in office without mandate.
“The special general meeting was necessary as members were unease as they that the department was condoning this non compliance with the Act. However we kept encouraging the society until we had to invoke the provision of Section 65 of the Act,” he said.
Despite all the alleged mal-administration, the society has a funeral scheme that assists its members with P10,500 towards funeral expenses in the event the member passes on. It covers family and four extended family members.
The society also has joint venture projects with Itshetseng SACCOS of Lobatse Town Council for the filling station project. The project has employed 24 people and phase two of the project involves buying a franchise from South Africa.