Chief Executive Officer (CEO) of the National Cooperative Credit Union (NCCU) Ltd, Curth Charles has raised concerns over a recent amendment approved in Parliament where credit unions in Dominica are now required to pay a license fee.
He was speaking during the DBS Radio Discoveries Program on Sunday night.
During the debate in Parliament last week, Finance Minister Dr. Irving McIntyre said currently credit unions are operating without. Therefore, the Amendment to Cooperatives Societies Act Chapter 78:03 of the 2017 revised laws of the Commonwealth of Dominica are required to facilitate the credit unions’ compliance with the law.
The Bill with the amendments that have been circulated proposes to insert a new section in the Cooperatives Societies Act that makes provision for the payment of these licenses to the accountant general on or before December 31 of every year.
“My concern is really with the small credit unions,” he said. “For example, if you look at St Mary’s Credit Union, we are saying that you are going to pay this on assets. If you look at St Mary’s Credit Union which is the smallest among us, they will be paying like $10,000. Now their net surplus was less than $10,000, obviously, they moved from a surplus to a loss.”
Charles continued, “So I would say credit unions of this size, I would focus the licensing fee not just on asset size, but on surplus as well.”
He added, “Again, being a finance man, I would come up with some form of computation where we look at not just the asset, we look at the performing credit union which is the surplus.”
Charles explained that what the credit unions have found is that the assets grow very quickly.
“We can move from one tier to the next and there are different tiers that the government has proposed,” he explained. “In a twinkle of an eye one of the credit unions can move from paying $10,000 to paying $15,000 or $20,000 because their asset has moved.”
Furthermore, he said that even if their assets have increased the surplus might not increase.
“So, I believe we should factor in not just the asset size, but the surplus of the institution as well,” Charles suggested.
Meanwhile, Charles revealed that as a credit union movement they have met among themselves and have decided to make a counter proposal to the government.
“Our Board of Directors met as a credit union movement and we made a proposal among the six credit unions to the government,” he stated. “The proposal was sent to the Dominica Credit Union League on behalf of all the credit unions and their directors…”
Charles pointed out that presently the credit union is awaiting a meeting with the Minister of Finance to discuss further.
“Because as a credit union body we have other suggestions and ways in which we can even go about with this licensing fee,” Charles noted.
Charles went on to state that another thing that captured the credit union movement’s attention as well is the Cooperatives Societies Act.
“Even at the time the Cooperatives Societies Act was implemented in 2011 we know certain things have changed,” he remarked. “We know there are many changes that as a credit Union Movement we want to suggest, we want to make.”
Charles mentioned further that he thinks it is important that all the interested bodies, the credit unions, the Minister of Finance and the government, “that we meet together and we speak about the changes as well.”
He believes it’s a dialogue that continues and the Credit Union Movement awaits another meeting with the Minister of Finance, “and we are really looking forward to meeting with the government.”
“Because that is something that’s important. You need to meet, you need to dialogue, you need to make suggestions, you need to make certain areas clear and make your own counter-proposal even when the government comes up with their own,” Charles remarked.
Dominicans when Sister Alicia introduce the credit union to people, it was to show poor people how to save their little pennies , thats why the people from the rural area would not come to roseau and save their pennies, because, one, some of them had to travel by boat or tracks to get to roseau.
So thats why mostly every villiage have their little credit union ,skerrit and his bad dealing run every foreign bank in dominica and is the credit unions thats paying for it, and now they are passing laws to make them pay for operating in dominica ,soon most small branches gonna shut their doors .My my my.
I quite agree that taxes and license fees etc. have to be paid.
But to be wasting taxpayers money on dam nonsense and then turning around and fleecing them, no sa, that is wickedness!!!!!!!!!!!!!!!!!!!
While the Gov’t grabs from the poor people’s Coop. CU movement through taxes that will close the smaller CU’s, the few Elites increasing salary, taking from citizens $64,000.00/ month for his House rent, increasing Cabinet members’ salary, etc., Wicked. it is unjust while a foreigner controls billions in foreign banks, which should be in our
Treasury. NCCU have to pay $100,000 every Year in taxes? Daylight robbery.
That is the price we all have to pay for living and working in a civilized and democratic society and also conducting business in a civilized and democratic society. We have to pay taxes and we have to pay license fees.
These people who hold top raking positions in the private sector seem to suffer from severe bouts of fear and cowardice. They have tremendous influence in the country but choose to remain stoic and unperturbed when the misguided policies of the unscrupulous regime have a damning adverse effect on businesses and their clients/ customers.
The businesses and the news media are two of the most powerful entities in society. To reiterate, they have enormous social clout. They can bring the country to its knees. Despite this, for reasons inexplicable, they steadfastly refuse to use their influence to bring about well needed changes.
The price of INACTION is far greater than the cost of making a mistake. An action is better than no action at all. Action now by the business sector will lead to a much more satisfying and productive life for the future generation.
so see how it is….they gave a minimum wage to the hard working people of Dominica….then gave themselves a maximum increase….and then went taxing the hard working people of the credit union….is this a country who is doing well? hell no….so lights and water going up….credit union fees going up? what next…this team ….lazy thinkers
Sad indeed! Where are we heading? Now our little money we work so hard to save for whenwe retire is open for Credit Unions to impose levies so they can meet those exorbitant levies imposed.
Why wasn’t brought to the membership before this was passed?
What is this nah?
People will start withdrawing their money, Shares will go down instead of increasing. No incentive to build up shares. Our shares are frozen to provide the Capital. Who gave those people that advice nah.
The growth in the Credit Union will halt. What is that nah?
I do not agree with that kind of levy imposed on the Credit Unions.
This will impact the finances of the poor people who are members of this cooperative. Sister Alicia developed this cooperative – People helping each other.
Why have the Governments of the region encouraged the Central Bank to infiltrate the cooperatives and now they are bleeding the poor people? People whom the banks would not give a loan without the appropriate security.
Those fees exorbitant as they are will be passed down to the members. For example, the NBD (our own Bank) put on a levy on the Credit Unions for clearing cheques. This was passed on to the members at Central (1.50 for each cheque). What is this for businesses? The National Credit Union absorbed this but now how will the business survive after the blows of the last three (3) years? Government and Minister of Finance please reconsider the plight of the lower class. Those fees are too exorbitant which will pass on the members.
Don’t forget that the passport money is drying up. The curtains are closing in and man head is spinning. We may have to pay for the air that we breathe. Banana gone bananas, Ross got Tossed, Dominica Coconut Products (DCP) hits the Docks, Frogs took off, and parasites are under fed. You killed the only four Cows you had and now you are going mad because you don’t have Milk. Suck it up!!!
Yess I …… Mr. Curth Charles. You want to go and close the gate after the horse has already left? Law already amended and passed. While you “expressing your concern”, start collecting Governments’ $100k by this month end……! #toolittletoolate
So the government went and passed a law without consulting those the law affects or considering their circumstances.
Yet if the credit unions need to implement a change the same law stipulates that they must consult their membership first
Where there is no vision the people perish. The country needs visionary leadership but what we are getting is dictatorship. The country is drowning in problems that have been mostly self inflicted by a heartless, myopic, overly corrupt group of misfits mismanaging the country’s political, social and economic affairs.
These men and women of straw are hemorrhaging the earnings of the business sector and even the desperately poor citizens. The average business and employee are overwhelmed with taxes, licences, fees, custom duties. The purchasing power of the ordinary citizens is rapidly diminishing. After getting paid, soon there will be nothing to take home to support the family.
Now you saying that? After the law has been amended?
Normally these discussions take place before the legislation goes to parliament. The government usually consults with the various stakeholders to understand how it affects them and what impact it might have on the industry.
I sense the government is desperate to raise cash, so they are looking under every rock to find that money.