By Philip Tengzu
Wa, (UW/R), July 28, GNA – Representatives of over 30 Village Savings and Loan Association (VSLA) groups in the Wa Municipality have undergone refresher training on VSLA management as part of measures to prevent the loss of members’ savings and profits.
Officers from the Youth Advocacy on Rights and Opportunities (YARO) facilitated the training, which the VSLA groups initiated to strengthen leadership, financial literacy and improved financial management.
The refresher training became necessary following the recurrent loss of substantial amounts of money from some VSLA groups, largely attributed to poor leadership and negligence.
Addressing the participants, Mr Salifu Ibrahim, a facilitator, advised them to exercise diligence in selecting their leaders, saying, “Effective leadership is fundamental to the success and profitability of every VSLA group.”
He revealed that about GH₵400,000.00 in profits of the VSLA groups under their management was lost annually due to poor leadership and weak internal controls.
Mr Ibrahim attributed the losses to inadequate vigilance by both members and leaders of the groups, which resulted in members being shortchanged on interest earned from loans and, in some instances, theft by some group officials, particularly group accountants.
He stressed that proper management of passbooks, regular monitoring of financial records and increased vigilance by both leaders and members would help minimise the loss of group funds.
Mr Ibrahim, also the Wa Municipal Programmes Coordinator for the YARO, indicated that similar refresher training sessions would be organised for members of VSLA groups under their management to improve governance and financial accountability.
Mr David Prenye, also a facilitator, took participants through leadership principles, emphasising that the sustainability of every group depended largely on the quality of its leadership.
He urged the participants to select leaders based on qualities such as commitment to the association, fairness, confidence, punctuality and trustworthiness.
Mr Prenye added that they should also consider the specific qualities required for the different leadership roles within the associations to ensure effective management.
The participants were also taken through financial literacy to equip them with the knowledge and skills needed to manage their finances effectively and the sustainability of their groups.
Some representatives of the Wa Community Cooperative Credit Union (WACCU) and Bayport Savings and Loans used the opportunity to educate participants on their financial products and services.
They explained the procedures for becoming members of those financial institutions as individuals and as organised groups and encouraged them to save with their institutions for increased profit.
Mr Peter Sonaa, Credit Manager at WACCU, said membership of the Credit Union offered several benefits, including access to loans at relatively low interest rates, non-collateral loans and returns on members’ shares, among others.
YARO had established over 2,000 VSLA across the Upper West Region to promote financial inclusion, savings mobilisation and economic empowerment among vulnerable households and women.
GNA
Edited by Benjamin Mensah
Reporter: Philip Tengzu, GNA
Email: [email protected]