The Lagos State Assembly wants to regulate cooperative societies in the State and address the current challenges faced by cooperators.
The position of the House followed the presentation of the report on a Bill for a Law to Provide for the Registration of Cooperative Societies in Lagos State and Connected Matters at the Assembly Chamber in Alausa, Ikeja.
Presenting the report, the Chairman of the Committee on Commerce, Industry and Cooperative, Chief Bisi Yusuff, said that stakeholders at the public hearing on the legislation identified various challenges ranging from non-adherence to the provisions of the existing law by the operator, financial impropriety with impunity, fraud, succession hassles, autocratic leadership and inadequate statutory sanctions for defaulting operators and members.
After thorough deliberation and consultations from different stakeholders, the Committee recommended that a registered society shall not grant a loan to any person who is not a member of the society to safeguard members’ savings.
Also, the management committee of a registered society shall constitute from among its members a seven-man Electoral Committee to organize elections of officers for the registered association.
The accounts of a registered society shall be audited by an auditor selected from the approved list of auditors given by the Director, and all unclaimed money shall be deposited in the State Treasury, amongst others.
Contributing, the Majority Leader of the Assembly, Mr. Sanai Agunbiade, said that members of the Electoral Committee should not be allowed to vote as the tenets of democracy do not allow people who conduct elections to vote.
Another lawmaker, Mr. Abiodun Tobun, suggested that there must be a timeframe for unclaimed money in a Cooperative account before it is deposited in the State Treasury.
Subsequently, the recommendations as amended were adopted as the resolution of the House.
Olaoluwa Adekunle
