National Cooperative Policy

29/07/2011

A national cooperative policy that addresses the challenges of cooperative organisations, especially to raise capital for expansion is being proposed.

The policy will propose amendments to the Cooperative Act that largely restricts the powers of cooperative societies.
 
Department of Cooperatives director Sevanaia Bilivalu said the policy would make it more conducive for cooperative societies to grow in numbers.
 
“We are working in consultation with the Solicitor General’s office on the formulation of the National Cooperative Policy that will make amendments to the existing Act,” Mr Bilivalu said.
 
“There are some provisions in the Act that we felt were a hindrance to the growth in cooperatives and we have reviewed those and made submissions to the Solicitor General’s office.
 
“One provision of the Act in particular that needs amendment is the scope of authority vested in the Registrar of Cooperatives.
 
“The Act requires that cooperatives channel their appeals for finance or loans from financial institutions through the registrar of cooperatives which turns out to be a cumbersome, lengthy process.
 
“It deflates the interest of the cooperative society in looking for finance to grow.
 
“So amendments that we want to see happen will allow the cooperative society to liaise directly with the financial institution.
 
“Effectively, submissions for amendment include the minimisation of the involvement of the registrar in operations of cooperatives.”

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