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OPERATIONAL GUIDELINES FOR CO-OPERATIVE SOCIETIES IN LAGOS STATE 
  

 
January 2013
 

Dear Cooperators, 

 
The Director and the entire members of Staff of the Directorate of Cooperative Services, Ministry of Agriculture and Cooperatives wish you a prosperous New Year. I also use this medium to remind you of your duties and obligations to your societies and what are required of you by the Cooperative Societies Law, Cap C15 of the Laws of Lagos State, 2003 and your registered Byelaws. The Directorate is particularly disturbed by the rising incidence of financial malpractices occasioned by *Sit-tight leadership,*Purchase of Land and landed properties without proper documentations; 
Gov. Raji Fashola (SAN) assisted by the Hon. Minster of Agric., Dr. ……………………. commissioning the multi-million Naira Lagos State Coop College, Oko-Oba, Agege recently.
* Non-keeping of statutory books of accounts and*  Failure to adhere strictly to the provisions of the Cooperative Societies Law, Cap C 15 of the Laws of Lagos State and the registered byelaws of your societies. Below, I address these issues one-by-one.  1.         TENURE OF OFFICE:  Henceforth, this office shall no longer allow any elected officer to stay in office beyond two (2) terms   or as provided for in their registered byelaws.  

2. INVESTMENT IN LANDED PROPERTIES:

It is absolutely essential that you obtain the consent of all                      members before embarking on the procurement of landed properties. Appropriate Search and Legal consultations must also be carried out before payment. You are advised to use the services of the Legal Officers available at the Directorate in these transactions.   You also must ensure that intending beneficiaries make a deposit of between 30 and 50% of the cost of land before the society can make the land purchase and take physical possession as soon as possible.                     3. KEEPING OF STATUTORY BOOKS: Accountability is a pivotal issue in cooperative administration;           it is thereforeexpedient you keep all statutory books and records. If you are in doubt as to what these books and records are, please contact your area officer and supervisors. You can also call any of the telephone numbers listed at the end of this publication. 4. RECOVERY OF DEBTS: The Cooperative Law and byelaws are clear on this. Irrespective of your position, status and disposition, you are to pay all debts owed the society in full with interest where applicable.It is also the duty of elected officers, especially the Trustees to ensure full recovery of all debts owed the society by all members and non-members. Where they fail to do this, they shall be held responsible for such debts.  5.         SUBMISSION OF ANNUAL STATEMENT OF ACCOUNT AND RETURNS:   It is statutory that societies submit their Annual Statement of Accounts and Returns within the first quarter of every year, that is, 1st January to 31st March, you are therefore urged to forward your Annual Accounts to the Directorate without delay as defaulting societies will be penalized. However, Cooperative Societies that have outstanding Annual Account within the first quarter of this year otherwise a fine of Ten Thousand Naira Only (N10,000) shall be imposed on defaulters. 6.         MEETINGS:  Meetings remain the main avenue for taking decisions in Cooperative Administration. Holding of regular ordinary general meeting is therefore essential for the smooth running of your society. It is now compulsory for you to hold such ordinary general meeting at least once every quarter.  Annual General Meeting (AGM) is statutory for all registered cooperative societies and is to take place once in a year. It must however be noted that no valid AGM should be held without an Annual Statement of Accounts duly approved by the Director of Cooperative Services. In the event that election of Officers would be held at your AGM, adequate notice (not less than one month) should be given to the Directorate through your Cooperative Area Office in order to ensure that adequate preparations for the election are made.   7. ELECTIONS AND HANDING OVER:   Where elections are to take place at the AGM, appropriate steps should be made to put in place the required Electoral Guidelines in consultation with the Directorate. After elections, out-going officers are to prepare written Handing Over Notes and ensure proper actions are taken for the in-coming officers to take over and continue the smooth running of the Society without hindrances.Both parties must study original copies of Annual Accounts and the Director’s comments and sort out any outstanding queries therein in writing as in-coming officers are inheriting both assets and liabilities. 8.         SUPERVISORY VISITS: Officers of the Directorate are expected to pay routine visits to your Societies as part of their regular work schedule, at least once every quarter. You are enjoined to cooperate with them whenever they call. However, where you observe such visits have not been paid, please call your Area Officer or the Director of Cooperative Services or any telephone numbers provided at the end of this paper. 9.                     LICENSED BOOK-KEEPERS: Only licensed Book-Keepers will be allowed to post the books of accounts of co-operative societies and append their signatures and seals to the appropriate places in the Annual Accounts & Returns Form. Where such services are rendered in-house, officers responsible for such duties are to obtain their professional licenses forthwith. Henceforth, no Annual Accounts will be approved without the seal of a Licensed Book-keeper. Complaints against any Licensed Book Keeper should be directed to the Director of Cooperative Services through appropriate Area Officer. 10. HIRING OF EXTERNAL AUDITORS: We have observed that some societies engage the services of external auditors without reference to, and approval of, the office of the Director of Cooperative Services. We shall no longer tolerate this flagrant violation of the Law. While this office is not opposed to the engagement of external auditors where necessary and does not intend to impose any auditor(s) on any society, the process of engaging external auditors must be in conformity with the Law.  Consequently, societies that intend to engage the services of external auditors are required to send three (3) names of desired firms of auditors out of which this office shall select one.  11. BANKING FACILITIES: Since bank charges constitute a significant proportion of expenditure profile of Cooperative Societies, it is hereby advised that Commission On Transaction (C.O.T) chargeable on every transaction be thoroughly negotiated in order to bring down such cost. By the same token, societies are also enjoined not to leave too much funds in their current accounts neither should they use ATM cards in the operation of society’s corporate bank account.   I also want to advise that societies should desist from obtaining loans or overdraft facilities from banks to finance the normal credit requirements of their members.   BANK/EXTERNAL LOANS:However, term loans facilities meant for the financing of Cooperative housing projects or other long-term projects may be tolerated. In any case, an approval must be obtained from the general body of members and the Director of Cooperative Services before applying for such facilities. Beneficiaries of this facility must also file in applications copies of which must accompany documents to the Director. 12.       INVESTMENT IN SPECIAL PROJECTS: Any society that is willing to embark on investment in special projects like equipment leasing, land acquisition or home ownership schemes etc. to enhance the socio-economic welfare of its members, must first sought and obtain the consent of the Director of Cooperative Services before embarking on such projects as required by the above stated Law.    13.       RESERVE FUND:   The Reserve Fund is an indivisible fund created by Law for the use of every society. It has been observed that over the years a large number of societies have not been able to account for them, it is therefore mandatory for all societies from this year to physically fix this fund a special interest yielding account.   14.       JOINT VENTURES: This Directorate shall encourage and support joint investment in projects, business ventures and services by cooperative societies in the state making use of the dynamics of the cooperatives. 15.       AMENDMENT OF BYE-LAWS: Many Cooperative Societies are now amending their bye-laws in order to provide legal cover for the expansion that has been recorded in their operations.  However, our experience has shown that members of the Co-operatives are not often carried along. Societies are therefore enjoined to ensure that such amendments are ratified by not less than 2/3 of your members before the approval of the Director of Cooperative Services is sought for. 16.       ALLOWANCES PAYABLE TO OFFICERS: The Co-operative Societies Law only recognizes the payment of honorarium to management committee and other functional committees members for services rendered; we have however discovered that officers of Cooperative Societies, in addition, pay to themselves various kinds of allowances.  We view this trend as an abuse of office.     Henceforth, officers must obtain a written clearance from the office of the Director of Cooperative Services before they pay any allowance(s) other than honorarium to themselves otherwise, such officers shall be made to refund such money they might have collected. 17. COMPUTARISATION OF YOUR SOCIETY’S OPERATIONS:  We have observed that the delay in the rendition of Annual Statement of Accounts by societies is mostly due to lack of time on the part of the management committee members, especially where the volume of operations of such societies are large. As a way of solving this problem, it is now compulsory for every society with membership size of 200 and above to computerize their records.  A number of software especially designed for cooperative accounting have been tested and endorsed by this Directorate. You can verify or obtain more information on these software from the Directorate. 18.       EDUCATION AND TRAINING:  While it is expedient for Cooperative Societies to constantly train their members in fulfillment of one of the Principles of Cooperation, it has however become necessary that any such training that is not being organized by the Directorate, must be cleared by the Director before the society’s fund is committed on such.  Management Committee Members of any erring society shall be made to refund any amount so committed. 19.OVERSPENDING PROVISIONS: It has also come to our notice that some officers of Co-operative Societies are fond of spending beyond approved appropriated funds for some activities such as AGM expenses, dividend etc.Henceforth, approval for such extra expenditures must be obtained from the Director of Co-operative Services otherwise officers involved in such arbitrary spending will be made to refund such to the society. 20.       AFFILIATION: In fulfillment of one of the cardinal principles of co-operation, all registered societies are expected to affiliate to appropriate co-operative unions within their area of operation at the earliest possible time. However, if there is any doubt as to where to affiliate, do not hesitate to consult our Area Office nearest to you. 21.       APPEAL TO COOPERATORS:   I am using this medium to appeal to all cooperators to be more proactive and show more interest in the affairs of their societies especially in their financial affairs.Feel free to get in touch with me or our Area office nearest to you. See their locations in the box below. 22.       APPRECIATION:  We thank you for your cooperation in the performance of our duties in the past, and solicit for your continued cooperation in our efforts to optimise our service delivery to the cooperative movement in Lagos State and our quest to take the movement to the next level.  Ayo Awokulehin (Mrs.),Director of Cooperative Services, Lagos State.  08023225407
To get a pdf copy of this publication, send a mail to: imambello4@yahoo.com

S/NCooperative Area Office                  Address/Location
1.LAGOS ISLAND147, BROAD STREET, LAGOS
2.LAGOS MAINLAND147, BROAD STREET, LAGOS
3.APAPA/AJEROMI147, BROAD STREET, LAGOS
4.IKEJA/OJODUBLK 9, 1ST FLOOR, OLD SECRETARIAT GRA-IKEJA
5.ALIMOSHOBLK 9, 1ST FLOOR, OLD SECRETARIAT GRA-IKEJA
6.VICTORIA ISLAND/IKOYI1, WILMOT POINT ROAD, BAR BEACH, V.I., LAGOS
7.AGEGE/IFAKO-IJAIYEJOHNSON AGIRI COMPLEX, OLD ABEOKUTA ROAD, OKO-OBA, AGEGE
8.MUSHINDAIRY FARM COMPLEX, PEN CINEMA, AGEGE
9. OSHODI/ISOLODAIRY FARM COMPLEX, PEN CINEMA, AGEGE
10.OJO/LAISA COMPLEX, AGRIC B/STOP, LAGOS-BADAGRY EXPRESS ROAD, NEAR IYANA OBA
11.SHOMOLU60, APATA ROAD, OFF OGUNTOLU STREET, SHOMOLU
12.IKORODU14, ORIWU ROAD, ITA ELEWA, IKORODU
13.BADAGRYMARINA, NEAR CULTURE OFFICE, BADAGRY
14.AJAH/IBEJU-LEKKIEPE-AJAH EXPRESS ROAD, ILAJE B/STOP, AJAH
15.EPEOKE OYINBO, EPE
16.ALAUSA/CBDOLD SECRETARIAT, GRA-IKEJA
17.SURULEREBROAD STREET, LAGOS
18.AMUWO ODOFINLAISA COMPLEX
19.AJEROMI-IFELODUNAJEROMI-IFELODUN
20.KOSOFEKOSOFE
 
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