The Renaissance Cooperative Credit Unions In Cameroon, RECCU CAM Ltd, an apex organization for micro-finance institutions with headquarters in Bamenda has begun articulating significant strategies to check financial indiscipline and mismanagement amongst its affiliates.

This move to positively scale up the activities of the organization was at the centre of discussions when the board members of RECCU-CAM met last week.

On the sidelines of the meeting, the general manager of RECCU-CAM, Sounjo Suh Samuel told The Sun what the organization thinks is best for its growth.

He spoke to Aminateh Nkemngu; Thanks for accepting to talk to The Sun at very short notice. What was the high point of the meeting that RECCU CAM Board members held behind closed doors?

Well, as usual we looked into the performance of the organization especially in the course of last year. But more importantly we examined the activities of credit unions that are affiliated to RECCU-CAM.

This was particularly important because for us to make the positive difference which was the motivation for us coming together, we had to examine the functioning of our affiliate credit unions, identify key issues and ask ourselves questions before coming up with strategies that guarantee growth and sustainability.

For example, some important questions we asked ourselves and equally tried to look for solutions are where the credit union presidents in our former league were when the league was hijacked?

What sanctions have ever been given to board members for mismanagement such as the continuous granting of bad loans and violation of other policies?

Of course the credit union presidents have always been there. In fact, they were there and were the very people who endorsed the manipulations of the law for their selfish interests.

RECCU CAM Ltd has board members. It is certain that the present crusaders will go away and another set will come up and may be gullible as the others-changing laws and selling loans.

Should we wait till that moment or should we be proactive and try to pre-empt this by enacting laws that may help. Management thinks that we should continue to draw lessons for our sad experiences and be proactive in preventing a repeat performance which is very likely in our new dispensation. This we can achieve through sanction/reward system well enshrined in our laws and enforce them.

Concretely, what proactive measures have been taken?

In view of all of the above, we are putting forward proposals for enactment into laws for the prevention of some of these bad practices such as granting of bad loans; when we talk of delinquency and written off loans in the network we are referring to massive and steady drain of funds in our credit unions through what we call bad loans.

The same board members who grant these loans are the same board members we are asking to adopt a reward and sanction system for their actions. Only board members with a true system of decorum will vouch for sanctions for their actions. The adoption of this system will be a litmus test of the integrity of board members of RECCU CAM affiliated credit unions.

What are the proposed new laws you are talking about? They are just three of them.

Firstly Board members of affiliated credit unions should sign and abide by a code of ethics.

Secondly, every newly elected president should sign a performance contract and

Thirdly, the board should be evaluated, rewarded for good performances and sanctioned where applicable periodically.

When we agree on the above principles, practical modalities can then be elaborated to handle such situations.

Can you be more explicit on what you are talking about?

What we are saying is that upon the election of a new president of a credit union affiliated to RECCU-CAM, he or she should sign a performance contract in which they agree and state how the problems he or she and the board will be solved.

This means that the board for example may subsequently be rewarded for bringing down the delinquency rate in the credit union, not by granting new loans but by the actual recovery of written-off and outstanding delinquent loans.

On the other hand, his performance on loans granting will also be evaluated and sanctioned or rewarded accordingly.

What do you mean by rewarding board members?

It certainly will not be a bad idea if we say the board and their legal retainer should be entitled to x % of the amount of written-off loans recovered in a year. We will equally be strengthening the movement if we say any board that records a delinquency of up to x% in a year should be set aside and if the delinquency is less than x% it should be entitled to x% of the annual surplus.

Any last word? Well, we just want to assure the members of RECCU CAM affiliated credit unions that all is being done to meet their expectations.

Last year we recorded significant progress. But the big challenge is for RECCU CAM to raise its own funds and stop depending on affiliated credit unions. And it is very obvious that we will get to that level in the nearest future