MOTSWEDI SAVINGS AND CREDIT CO- OPERATIVE SOCIETY (SACCOS)
BOARD REPORT -2016 ANNUAL GENERAL MEETING
Board Composition
Chairperson: Ms. Sipora Mmabogosi Tsonope Deputy Chairperson: Mr. Batisane Mabala
Board Members Mr. Othusitse Bina Tsalaile Mr. Luka Kaisara Ms. Kobamelo John Ms. Marea Vemunee Kazondunge Mr. Moroka Peter Tumaeletse Ms. Doreen Shadike Molomo
Page 1 of 14 Ms. Eunice Pholele Thupeng
Page 2 of 14 THE BOARD OF DIRECTORS’ REPORT TO THE GENERAL MEMBERSHIP AT THE ANNUAL GENERAL MEETING (AGM)
VENUE: FAIR GROUND HOLDINGS
DATE: 23rd April 2016
Introduction:
Motswedi SACCOS continues to operate its business within the context of the Cooperative Model. This is done within the confines of the law guided by ensuring adherence to the Societies act and embrace of the Cooperative principles. The Society aspires to grow in numbers and values add to its members as per the Society strategy.
1. Society’s Performance Financial Years –( 2013-2015)
The three financial years under review are 2012/2013, 2013/2014 and 2014/2015
1.1 Membership
The total membership of Motswedi SACCOS as at 30th April 2015 stood at Two Thousand Eight Hundred and one (2801) compared to Two Thousand Three Hundred and Seventeen (2317) in 2012.This represent an increase in membership of Four Hundred and Eighty Four (484) or 20.88 %.
1.2 Members Savings:
The members’ accumulated savings as at 30th April 2015 was recorded at P65 698 852.00, as at 30th April 2014 stood at P 58 071 694.00 and as at 30th April 2013 stood at P 52 904 965.00 compared to, members savings of P 47 235 834.00 as at 30th April 2012 which shows an increase of P 18 463 018.00 from 30th April 2012 to 30th April 2015 or 39.08 %.
1.3 Members Share Capital:
Members Share capital increased in financial year ending 2015 by P 253 375.00 from year ending 2012. The total share capital as at 30th April 2015 stood at P 4 397 613.00 compared to P 4 144 238.00 as at 30th April 2012 representing an increase of 6.11%. Members Capital as at 30th April 2013 and 30th April 2014 stood at P 4 298 250.00 and P 4 333 250.00 respectively.
1.4 Members Loans
Loans advanced to members amounted to P 79 308 829.00 as at 30th April 2015 compared to P 64 071 771.00 as at 30th April 2012 showing an increase of
Page 3 of 14 P15 237 058.00 or 23.78 %. The loan book balance as at 30th April 2013 and 30th April 2014 stood at P 70 125 769 and P 75 261 290.00 respectively.
YEAR SAVINGS LOANS SHARES 2012 47,235,824.00 64,071,771.00 4,144,238.00 2013 52,904,965.00 70,125,769.00 4,298,250.00 2014 58,071,694.00 75,261,290.00 4,333,250.00 2015 65,698,856.00 79,308,829.00 4,397,613.00
2.0 CURRENT UPDATES ON THE SOCIETY’S DEVELOPMENT
2.1 Loans
2.1.1 Quick Loans
The total amount of quick loans advanced to members was P 853 830.00 from March 2015 to March 2016.The interest earned during the period was 85 378.00. The total amount of P 807 064.50 was offset from members savings to clear their outstanding quick loans. We urge members to always pay their quick loans as from the above figures members do not clear their quick loans.
2.1.2 Ordinary and Emergency Loans
The total ordinary and emergency loans advanced to members from March 2015 to March 2016 amounted to P 30 868 680.00 and the total Loan Administration Fee charged on Ordinary and Emergency loans amounted to P 2 141 098.38.
2.1.3 Delinquent Loans: The number of current delinquent loans is Fifty Six (56) out of the total membership of 2877. The outstanding balance for the delinquent loans portfolio was P 1 500 706.22 as at March 2016. The Society delinquents have been handed over to the Debt collectors Otto and Paul Attorneys who will ensure debt recovery. The lawyers were engaged in March 2016 and have been furnished with all the requested information. They will be reporting progress to Board on monthly basis.
Page 4 of 14 From the desktop research that was conducted on delinquents the following were the findings:-
The highest numbers of delinquents fall within the bracket age range of 46-65
Majority of delinquents are retirees
Job changers are also cause for concern as they do not make necessary loan recovery arrangements with the society.
2.2 Investments:
2.2.1 Financial
The cash and cash equivalent are reported below
NO Bank Account January 2015: MARCH 2016: AGM 2015 – 07th AGM 2015 – 23rd March 2015 APRIL 2016 1 Investec Botswana Managed Fund P 3 603 759.80 P 6 685 937.90 2 Stanlib Managed Prudential Fund P 1 078 020.32 P 1 152 139.75 3 Stanlib Money Market Fund P 249 989.35 P 3 422 520.59 4 Call Account – 9016557 P 12 333 142.63 P 14 648 063.18 5 Current Account - 4125722 P 20 000.00 P 20 000.00 6 Current Account - 3401681 P 48 070.77 P 10 000.00 7 Current Account - 3401673 P 20 000.00 P 20 000.00 8 Total P 17 361 347.28 P 25 958 661.42
2.2.2 The Society invested P 3 000 000.00 from the Barclay’s call account with STANLIB Botswana Money Market Fund on the 06th February 2015.
2.2.3 The Society invested P 3 000 000.00 from Barclay’s call account with Investec Botswana Managed Fund on the 22nd June 2015.
2.2.4 The price per unit for STANLIB Botswana Managed Prudential Fund as at March 2016 is P 182.18 per thebe compared to P 170.46 per thebe in January 2015.This shows an increase of 6.87 %.
Page 5 of 14 2.2.5 The price per unit for Investec Botswana Managed Fund as at March 2016 is P 200.75 per thebe compared to P 194.33 per thebe in January 2015. This shows an increase of 3.30 %.
2.3 CAPITAL INVESTMENTS
2.3.1 Property Investment
Motswedi SACCOS has acquired a property of P17 Million pula been 5 th floor of the Zambezi Towers at CBD..The project is completed and the Society offices are operating from the same since 01st March 2016.The office space is 847 square meters with underground parking space of 43 square meters.
The office is operating from 187msq whilst 124msq is rented out at P100 per sqm.
The rest of the space is up for rental, currently the commercial property market is saturated resulting in low turnout for tenants
The old premises been the Extension 4 office space is also vacant. The Board has resolved to rent it out to any willing and reliable tenant.
Different Estates agents have been approached to list the properties for rental.
We appeal to the Society membership to help with tenants search. If you have any leads please contact the Society office.
2.3.2 Oodi Land Sale
Oodi weavers are selling 3.3 hectares of land valued at P4 million. The land is marked for sale following the collapse of the Oodi Weavers Cooperative Society due to lack of funds (Operational Losses).
The Office of the President through the task team put in place (Department for Co- operatives Development included) has motivated and requested that the land be bought by Cooperatives as it will promote community and local ownership. Motswedi SACCOs is currently on negotiations with other Cooperatives (Ditswammung,Selibe Phikwe Multi,Bobonong Multi) to acquire the space on a joint venture arrangement. The land was initially planned for building 52 residential houses and a day care centre
The Board believes that the land can be a way of diversifying the Society resources and income streams.
Considerations that were put under perspective include;-
Page 6 of 14 Oodi Village is fast growing with a population of 11 000
Oodi has a high demand for residential houses as evidenced by the recent scramble for plots (120 000 applications received for 1000 plots)
Oodi is the only village in the outskirt of Gaborone that still has space for developments(Tlokweng,Mogoditshane and Mmopane already filled Up)
Oodi is marked for development under the current budget (For roads,schools and College upgrade)
2.3.3 Movable Assets
The Society has during this financial year purchased a bakkie Mazda BT-50 double cab. This was to cater for transport complications when the other vehicle is away on official trips. It also offers convenience and comfort during the official travel especially during long distance member education campaigns.The car was purchased at Barloword Motors for P 310 481.47
2.4 COMPUTERISATION
2.4.1 BIT systems
The Society has taken BIT Systems on legal process. This follows numerous attempts to get them to perform their contractual obligation with the Society. Consultation meetings and various engagements were done as we thought the service provider will honour his part of the deal as he pleaded for such. The Board after exhausting all the means resolved to litigation.
The legal process has been outsourced to Bogopa, Todedza and Manewe Attorneys. They started by giving BIT a letter of demand for specific performance of the contract. BIT failed to perform within the stipulated timeframes and the lawyers proceeded to lodge claim for damages and losses. The matter is still before the legal brains therefore we can only provide highlights of the issues hence we interfere with the investigations.
The Direct costs claimed amount to P403 000.00.An informed claim on indirect costs is yet to be finalised, still awaiting quotations for a replacement system from some service providers.
The legal costs cannot be fixed yet as the price will depend on the approach used per stage of the case and the attitude of the defendant. Hourly rate per consultation session with the lawyers is P2000.00
2.4.2 Cooperatives Computerisation
Page 7 of 14 The Director for Cooperatives has requested Cooperatives across all sectors to -collaborate towards Computerisation. This comes up as most Cooperatives have tried to Computerise but have never attained any fruition due to lack of either expertise or resources. Motswedi SACCOS has agreed to become part of the project as the Society will benefit from cost sharing and expertise advantage on policy formulation and project implementation. Data clean up exercise in readiness for computerisation is underway.
The project initial stage of ICT policy formulation, User Requirements documents compilation ,tendering and awarding is expected to be completed by 01st September 2016.System development is expected to start upon completion of the first stage.
The Directors office is coordinating the project and a task team drawn from various Cooperatives has been put in place to drive the assignment.
2.5 MEMBERS INTEREST 2.5.1 The Board of Directors declared ten (10) % interest on members’ savings balances for the financial year 2014/2015. This was an incentive to give worth to our valued members.
2.6 DEDUCTION CODE
2.6.1 The society share its code with other SACCOS’s from different ministries. The sub- coded SACCOS’s are charged an agency fee of 2% monthly for collections and handling of transactions on behalf of other sub-coded SACCOS’s.Motswedi SACCOS currently collects and handle transactions for eight SACCOS’s being Ditsheng, Itshetseng, Itshetso, , Letsibogo, Thothi, Thuto, Tikologo and Tselakgopo. The sub-coded SACCOS’s have a total membership of Two Thousand Eight Hundred and Ninety Nine (2899). The total amount collected as an agency fee for financial year 2014/2015 amounted to P 432 000.00
2.7 ELECTIONS 2.7.1 Elections committee The Board of Directors engaged members of the society and a representative from the Department Co-operative Development to facilitate and conduct elections for committee
Page 8 of 14 positions in Motswedi SACCOS’s for the 2016 AGM. The members of the Election Committee comprises of the following;- . Mr Geofrey Pheko . Mr Motshwari Mashabane . Representative from Cooperatives office
2.7.2 Committee’s Office tenure Status
The following members would be retiring as members of respective committees as provided by Bye-law 54 (i) as their term has expired.
2.7.3 Board of Directors
. Mr Othusitse B. Tsalaile (Served 6 years)
. Mr Moroka P. Tumaeletse (Served 6 years)
. Mr Luka kaisara (Served 2 years)
Mr Luka Kaisara would be eligible for re-election as provided by the Bye-laws 54 (i) as he has served two years.
2.7.4 Credit Committee
. Mr W. President Emmanuel (Served 6 years)
2.7.5 Nominations Committee
. Ms Catherine Seemise (Served 1 Year)
Ms Catherine Seemise would be eligible for re-election as provided by the Bye-laws 54 (i) as he has served one year.
2.7.6 Supervisory Committee
. Mr Gosalamang Matlho
Mr Gosalamang Matlho would be eligible for re-election as provided by the Bye-laws 54 (i) as he has served two year.
2.8 GOVERNANCE
2.8.1 Workshops and Conferences
Page 9 of 14 The Society has attended both regional and international governance trainings workshops and conferences. These were held under ACCOSCA, SACCA and ICA regional bodies. The purposes of attending these workshops are to capacitate Board members and staff on issues of good Governance practices and to learn best practices in the SACCO industry. They also aid in promoting effectiveness of SACCO's service delivery to enhance financial Inclusion and Information exchange.
Summary information of the workshops attended is tabled below
Affiliation Body Trained Committees Venue Staff SACCA/ACCOSCA All Management Board Kenya and South Manager, Deputy Africa Manager , Supervis ors ICA 2 Management Board Turkey Accountant Members
1 member from all Botswana committees BOLESWA Exchange 1 eligible member from Lesotho 2 youthful staff Programs each members Committee and 1 member Bench Marking Nominations Committee South Africa None Motswedi SACCOS training budget for the year was P400 000.00 and it has been fully utilized. 2.8.2 COMMITTEES MEETINGS
The Board of Directors, The Credit Committee, the Nominations Committee and Supervisory Committee continued to honour their meetings as provided by the Bye-Laws of the society.
A summary of meetings held is tabled below
Committee Type of Meeting Frequency Board Ordinary 11 Special 13 Credit Committee Scheduled 52 Special 2 Nominations Scheduled 3
Page 10 of 14 Special 2 Supervisory Scheduled 4 Special 3 All Joint 6 (Includes workshops meetings)
2.9 STAFF MATTERS
2.9.1 Resignations
The Society is still having a challenge to retain talent and proficient staff especially those in the senior management. The deputy Manager Mr Lekgotla Disang has since resigned from the Society from the 31st December 2015. Recruitment process to find his replacement is already at an advanced stage.
2.9.2 Recruitment
a)Marketing Officer
The Society has recruited Marketing and Product Development Officer. This was for the purposes of membership recruitment and member education drive. MS Priscilla Rabasimane started work on the 01st April 2016
We are gratified to welcome her aboard .We wish her warm and worthwhile stay.
2.9.3 Staff Complement
Motswedi SACCOS currently has 21 staff members under its employ categorised as below
Type Number Permanent 13 Contracted 8 The society has absorbed two of its contracted staff to permanent and pensionable positions of its workforce.
2.9.4 Staff Training
With an endeavour to foster staff development and to capacitate competency levels of our staff, The Society has sponsored three of its employees for further studies on part time basis. Targeted areas for development were
Accounting-AAT level4 Risk Management
Page 11 of 14 Marketing
2.9.5 External Training-ADE
The Society is also proud to have recently taken the Manager for African development Educator’s training program in Kwale county,Kenya. This unique and transformative training provides critical lessons in cooperative principles, SACCO philosophy and international development issues while incorporating challenges SACCOS face today. The program combines practical co-operative strategic thinking within the sector and the impact it has on the members through;
A thorough understanding and examination of how Sacco Business Model can enhance and empower members
Address key challenges of implementing a Sacco Business Model, including succeeding in a competitive environment and regulatory regime while maintaining a social principles Engaging Participants in a captivating and thought-provoking discussion about cross cutting issues affecting the sector throughout the program This is a regional certification and recognition which gives international exposure and networking on SACCO operations.
The program cost was $1500.00
2.10 New Products
The Board has resolved to introduce the following products to its product bouquet.
This came about as a way to try to offer our members competitive products.
Motswedi SACCOS Board of Directors has during the period of 2015/2016 adopted the following products for AGM Approval
Product Terms and Qualification Criteria Interest Charge Meeting Start date Conditions Date Save as Save any There must be 3% Annual 02/09/2015 After AGM You desired Continuous Savings interest Earn(SAYE amount. for a minimum of ) No two years 15 % bonus at withdrawals the end of two years X-mas Do an initial No withdrawals 4% per annum 02/09/2015 After AGM Savings lump sum Matures end of (Motshelo deposit of P600 November of each ) Pay monthly year
Page 12 of 14 deposits of at least P50 Charges will apply when breaking the deposits
Quick To increase its Clean Credit record 10% per month 02/09/2015 After AGM Loan threshold to P1 500.00 and increase payment period to 2 months
We believe the products will give the Society members variety as far as services are concerned
We hereby request for your approval of the proposed new products
2.11 Interest on Ordinary Loans Reduction
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