Since the establishment of Emerald Students Multipurpose Cooperative Society in March, 2021, many concerned prospects have raised the question – “what if Emerald run away with our money?”
Before we discuss this issue far, kindly be aware that ALL Emerald funds are inside students’ loan account. This means Emerald hardly have volumes of cash available because they immediately goes into students/members’ school fees loans.
The DSS office had in June, 2021 invited the management of Emerald to explain what we are doing with Emerald as many cooperatives are now running away with people’s monies. The DSS officials were surprised that our total loans was more than total deposits with a margin of N600,000plus. This means that Emerald have even gone ahead to take loans to pay its members’ loan requests.
If Emerald can borrow money to pay its members’ school fees loan request, this means the issue of running away with your money should be kept away.
But then, despite the fact that Emerald means well for the students’ community, there are always internal and external challenges that may affect a business enterprise that may lead to its fall, whether seen or unseen, anticipated or not, notwithstanding.
Below are a list of what we are doing to ensure Emerald is enviously protected from any harm.
Many persons are afraid that the Emerald management may run away with monies. However, the reality is that what you should be afraid of is the members on loan (if they give us hard time repaying), not the management. The management of Emerald have granted excess loans, so if it wants to run away with monies, it wouldn’t go into that. To ensure probity, same management of A & U Ng also manages Emerald.
2. Management Cost
It will be unwise to make managerial expenses when we have made very meagre profits. Hence, same staff of A & U Ng also manage Emerald at no extra cost. This is to ensure Emerald does not accumulate huge expenses that will undermine its integrity. Till date, we have not paid a staff a dime. A & U Ng bears the cost of salaries on behalf of Emerald as a child of necessity.
3. Loan repayment behaviours of members
Another thing that can undermine the continued existence of Emerald is the loan repayment behaviour of members. Hence, we always educate our members who seek for loans so that they do not take loans out of desperation. We also educate them on the need to repay promptly and the benefits that accrues to such prompt repayment. We believe that if properly educated, members on loan will repay without stress.
4. Loans are restricted to school fees only
As an additional policy to ensure Emerald s sustained, all loans are restricted to school fees payment. This is to ensure the primary purpose of the cooperative is not defeated. Although there may be business loans in the future, such activities will be subjected to the growth and feasibility of such practice.
Several persons have also shown keen interest to invest in Emerald an issue which the management of Emerald have turned down. The fear is that stakes may override the original purpose of Emerald.
Emerald is a non-profit cooperative where profits from loans are expected to be used for scholarships. Where stakeholdership issue comes in, the fear that profits may have too many hands to go into have become a major issue of concern.
6. Loan Granting Pattern
In order not to be ahead of ourselves, we try as much as possible to grant loans step by step. Many students have requested for school fees loans for two sessions at once. We say No! Take for one session and pay it first. When cleared, then we approve the next one. This is to ensure we do not get dragged into wishes of members who may later have issues paying back, thereby putting the cooperative in dire times.
This list is still being updated…
There is no way Emerald will run away with school fees or fold up. This is because all the monies deposited are used to pay school fees of members who request for loans. Emerald is an ongoing concern that will not fold up even in the next 50 years. It will be nurtured and grown to the benefits of the entire students’ community.
Julius Michael Oghenenyoreme
Emerald Students’ MPCS