The biggest obstacle for credit unions and cooperatives worldwide is corruption, Chief Executive Officer of the World Council of Credit Unions (WCOCU) Incorporated Arthur Arnold said Monday.
ﾓWe better recognize that,ﾒ said Mr. Arnold, who addressed hundreds of delegates attending the seventh annual conference of the council and general meeting of the International Credit Union Leadership Institute at the Atlantis Resort. ﾠ
Approximately 200 of the 1,000 conference participants represent the Caribbean countries. ﾠ
Conference participants include board members and executive officers of credit unions from around the world who are expected to bring a vast amount of experience and innovative ideas to the discussions.
Mr. Arnold said the councilﾴs board of directors recognizes the need for good governance principles. ﾠ
ﾓWe believe that we should demonstrate to the world that we are probably the strongest in fighting corruption whether it is internally, defending our democratic structureﾅwhether it is externally, talking about how you want to comply with legislation and regulations in your country, talking about accountability or whether it is individually as a volunteer or professional,ﾒ he said.
Mr. Arnold said the board will produce a paper by the end of the year citing guidelines for all credit unions and cooperatives regarding good governance.
General Manager of The Bahamas Cooperative League Limited, Francis Davis, told The Bahama Journal that credit unions and cooperatives in The Bahamas do not face corruption any more than other financial institution.
ﾓI think itﾴs important to know that we have all the expertise and the world council for example, is on the cutting edge in terms of regulatory framework, technology and software and so weﾴre in the position to take advantage of all thatﾴs out there,ﾒ Mr. Davis said. ﾠ
Within the past year, the government presented a new Cooperatives Societies Bill to parliament, which is now awaiting final approval by the senate. Mr. Davis said the bill is ﾓmore inclusiveﾒ and insists on very high standards.
ﾓItﾴs so in terms of regulation, in terms of safety, and soundness and the bill is very strong on boards and their governance and lack of conflict,ﾒ Mr. Davis said.
Director of Cooperative Development in the Ministry of Agriculture Fisheries and Local Government, Nathaniel Adderley, said the new legislation will reinforce the governmentﾴs commitment to the functioning of cooperatives in accordance with minimum operating standards and globalized best practices.
In The Bahamas, credit unions have grown steadily since 1980. ﾠAccording to statistics compiled by The Bahamas Cooperative Movement, at the end of 2003, the movement held $140 million in assets.
There are approximately 250,000 cooperative members in The Bahamas and according to Mr. Adderley, their deposits account for three percent of the countryﾴs domestic savings. ﾠ
ﾓIt would be great for the country if credit unions are successful in encouraging more Bahamians in saving consistently and substantially increase that percentage,ﾒ he said.
Mr. Adderley applauded the WCOCU for its high standards, which he said are a model for international and regional bodies. ﾠ
ﾓThese efforts have shaped the course of public policy in many countries, inviting credit unions to grow into healthy, quality financial institutions,ﾒ Mr. Adderley said.
Mr. Adderley added that because credit unions and cooperative members pool their resources, the institutions pay better rates than most financial institutions.
ﾓWe keep our costs down, we donﾴt have government taxes, we have incentives because of our legislation where we are exempted from stamp tax and we pass all those benefits on to our members,ﾒ he said.
ﾓAnd when youﾴre ready to borrow, we lend at very competitive rates because itﾴs your money. ﾠOur emphasis is on giving loans where we think that loan would improve the life of that person.ﾒ
There are 350 credit unions in 18 countries throughout the English and Dutch speaking Caribbean. ﾠThe movement has 1.5 million members and an asset base of $1.8 billion.
Hadassah Hall, The Bahama Journal
