DPT OF COOPERATIVES TO GET TOUGH WITH CREDIT UNIONS

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The Department of Cooperatives will clamp down on any Cooperative Credit Union or enterprise purporting to be a registered Cooperative entity without legal authorization by the Department. 

According to the Department of Cooperatives, some legalized Cooperative Credit Unions are opening new branches outside of their registered original operational area without following the laid down procedure while some entities are purporting to be Cooperative Credit organizations without going through the laid down regulations. 

The Ashanti Regional Director of Cooperatives, Charles Kwaku Boateng gave the warning during a media interaction in Kumasi.

Mr. Boateng disclosed that following the recent insolvency of most Micro Finance Companies resulting in hold up of deposits of many people particularly in the Brong Ahafo region, many of those financial organizations are taking refuge in Cooperatives at the expense of the innocent customer. 

This, the Director of Cooperatives indicated is illegal since the practice is contrary to the rules and regulations of the Cooperatives.

 Mr. Boateng noted that the law forbids any individual or group of persons to carry on any trade or business claiming to be a Cooperative without the prior approval by the sector Minister.

 Mr. Boateng said the effective regulation of the cooperatives sector is the best way forward at this time as the best alternative to the collapsing micro-finance regime. 

He therefore urged Ghanaians to form productive and genuine cooperatives through which they can pool their financial and material resources towards improving their economic circumstances.

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