'Keep politics away from co-operative societies'

He was speaking at a workshop on ‘Reasons for incurring losses and steps to be taken to make profit’ organised jointly by District Co-Operative Union and Karnataka State Co-Operative Federation and Department of Co-Operation for the representatives of co-operative unions here.

Ranganath said first they should understand from where the profit comes. Those who were at the helm of affairs have to ensure that there should be no discrepancies in the union. The books of accounts need to be checked regularly. It was not possible to make profit if they compromise with quality of service with any association. Giving quality service and product would not only help them to remain in market. “A number of co-operative societies are spoiled because of politics internally. Such politics should not be allowed to grow in the field of co-operation”, he added.

G C Nayak, deputy director, Department of Accounting of co-operative societies said on many occasions, directors will be aware why their respective societies are incurring losses, but they do not know how to come out of it. Many PLD bank are in loss due to non-payment of loan. There will be lot of obstacles at local level from taking action against defaulters. If co-operative societies keep its foot firmly without succumbing to any pressure, then losses could be checked, he pointed out. District Co-Operative Societies Union Director Prakash said in majority of cases, presidents, secretaries and directors of societies are be responsible for the societies to incur loss. They take decisions by flouting all rules in the air. This would make the societies to run into losses.
It would take many years for such societies to tread the path of profit. On many occasions, those societies will not come up at all, he added.

He said many problems crop due to lack of experience among directors and office-bearers of societies. In that condition, auditors and supervisors should guide them. They should ensure that loans borrowed by people is used for that purpose only. District Co-Operative Union President V N Rajanna said more than 200 co-operative societies are in loss but representatives of only 20-25 societies turned up for the workshop. The co-operative societies play an important role in the nation development. However, they should ensure that politics don’t enter co-operative societies. Retired director of Karnataka State Co-Operative Federation, Govindegowda explained in detail reasons for the societies to run into losses and ways to make profit. Deputy Registrar of Hassan Sub-Division, K S Rajashekar and others were present.

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