Credit union pays R1.5m dividends |26 August 2008

SCU members listening tko a presentation during Saturday's AGM. Mr Shamhong is seated first left in photo below

This compares with R1 million given out to 10,481 members of the union the previous year, which was up from R750,000 paid out in 2005.

SCU chief executive Louis Shamhong gave the figures in an interview with Nation about the union’s annual general meeting, which took place on Saturday in the Seychelles Trading Company’s conference room.

He attributed the higher dividend to the credit union’s improved profitability, saying members now have more confidence in the union and are paying back loans better.

Mr Shamhong said it has come a long way from 2004 when its liquidity stood at a mere R2.2 million, forcing government to offer a R50 million guarantee in case of the SCU’s collapse.

“We have not had to touch any of that guarantee and we are now comfortably sitting on R23 million,” he said, adding if for any reason members wanted to withdraw their savings, their money would be available.

“The time is gone when we would give a member R10,000 now and ask him or her to come for another R10,000 next month. Now if a member wants and qualifies for a R6 million loan we can advance the money,” he said.

The chief executive said there is much more transparency, with a depositor’s balance being updated immediately money is credited into an account.

The SCU’s operations are overseen by an independent committee headed by Maizy Tirant, with Dora Ernesta and Octavie Choisy as members. The SCU members who met on Saturday expressed their confidence in all three, who will continue to oversee the union’s operations.