By Ismail Azeez, Osogbo
Osun state Governor, Ademola Adeleke on Tuesday approved a N1 billion revolving loan scheme for the cooperative society movement in the state.
Adeleke, who declared the State Cooperative Summit opened, announced far-reaching reforms, including the allocation of One Billion Naira revolving loan scheme through the cooperative and micro-credit agency .
Adeleke stated that his administration has resolved to invest a billion naira in the state cooperative movement to create a pool of revolving loans at single digit interest rate through the cooperatives and micro credit agency.
The Governor narrated his reform agenda further, “As we plan to inject huge funds, we must work on the following areas to inspire confidence and sustain continuous government financial contributions.”
“The Cooperative law is due for review: After enactment dating back to first or second republic, an amendment of the act is necessary to take into account modern trends and practices.
“Upgrading the operational standard of the cooperative movement: We all must admit that the operational standard among the cooperative platforms is very low and substandard. The old laws are hardly complied with, and the practices across the societies are quite below any confidence inspiring rating.
“The need to review compliance with democratic governance: The cooperative society mostly lacks democratic governance. In other words, there is no regular election of leaders. This blocks innovation and frustrates the potential of the grassroots financial platform.
“Crisis of Accountability and transparency: The greatest challenge is the low level of transparency and accountability in cooperative operations. The rot is deep, we must all admit. The external and internal auditors are mostly compromised, and managers are mostly ill-equipped. We must reform to achieve the potential of the movement,” the Governor noted.