Preamble

1. MANAGEMENT OF ISLAMIC COOPERATIVE SOCIETY: BY ADIO ABDULRASAQ AT A WORKSHOP ORGANISED FOR MEMBERS OF CRESCENT COOPERATIVE SOCIETY BY EL-ANSAR MULTIPURPOSE COOPERATIVE SOCIETY LIMITED NATIONAL HOSPITAL ABUJA AT NICOMSAT OFFICE AIRPORT ROAD ABUJA ON SATURDAY 13TH APRIL, 2013

2. Preamble • Management simply means getting things done through people or • Effective and efficient use of resources to achieve organizational goals • Management of Islamic cooperative society is the application of management principles and functions to the running of the society in line with the Islamic tenets. Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

3. Concepts of Islamic Cooperative • The concepts of Islamic cooperative are • mutual understanding and agreement • respect and concern for others • dependence on the pool of members’ contributions • secure individual’s financial autonomy • Safety and welfare of members Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

4. Uniqueness of Islamic cooperative • Islamic Cooperative Society must think about the permissibility of the project/business in the light of Qur’an before making any investment • ultimate goal of the society is to help members and to ensure value of self help and self responsibility (brotherhood) Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

5. Uniqueness of Islamic cooperative Contd. • Social and economic justice to the society • Justice, Fairness and equity • Cooperation and Partnership • Promotion of socio-economic well being of members; a feat which a single individual working alone cannot achieve. Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

6. Management principles • Planning-long and short term • Organising-departmentalization • Coordinating-teamwork/team spirit • Controlling-all resources-staff, deposits, withdrawals, income, expenditures etc. • Staffing-human capital-qualified and right staff • Budgeting-appropriation • Communicating-top-down-top: Public Relation-image making, grape vine • Monitoring and evaluation-service delivery Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

7. Management functions required • Coordinate activities and assign overall responsibility • Hire, train, and deploy the right personnel • Create clear reporting lines between the staff, members and senior management • Communicate the strategy internally-strategic information only available to authorized people • Develop and maintain a stakeholders database Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

8. Management function required contd. • Develop and maintain a commitments registers • Stay in control of “third-party” engagement • Manage buyers and investors risks • Track changes in the quality of stakeholders relationships-price regime, withdrawals, deposits • Stakeholder engagement should be managed as one would manage any other business function.- • (stakeholders: members, executives, staff, suppliers, buyers, regulators, institution management) Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

9. STAKEHOLDERS ENGAGEMENT • involves listening and responding to concerns and suggestions, qualities to look for include: • good people and communication skills • a good understanding of the internal and external socio-cultural/politics • open-mindedness and respect for the views of others • a solution-oriented approach to all issues • a high integrity/degree of trustworthiness • a genuine commitment to the position and its goals Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

10. Managing individual/committee • Duties and responsibilities • authority to negotiate on behalf of the society • clear reporting structure and clarification as to which decisions they can take unilaterally, and which ones are to be passed on to higher levels within the society • Strategic information management • a genuine commitment to the position and its goals Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

11. Managing individual/committee contd. • Society/members relationship • Identification and effective control of potential risks • Team building around risks management • Keeping track of activities in order to reduce inefficiencies, confusion and conflicting messages or commitments. • a high integrity/degree of trustworthiness Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

12. Loan Administration • Loan administration is an important aspect of cooperative activities and as such a serious attention needs to be paid to it. • Requests for loan need to be controlled because of its attendance effects on the smooth running of the society. • Members should be educated on the need to always request for loan for projects that have direct benefits on their life and family. Those without positive project in their life should be discouraged from taking the loan for fun Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

13. Requirements for Granting Loan • Cooperative loans are not like bank loans, the following are some of the conditions required: • Membership of the cooperative society for specified period e.g. 6 or 9 months • Must be contributing into savings accounts • Must have ability to pay back • Must fill appropriate form and pay required fees • Must have credible guarantors Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

14. Rules governing granting of loan • Loan is not a right of any member-lender and borrower should agree with the terms and condition of the loans • Loan granted is drawn from the pool and is not individual’s money-should be paid back • Beneficiary of loan should be a financial members of the society • Loan granted will be paid back within specified period, usually 12 months Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

15. Rules governing granting of loan contd. • Application for loan shall be made on appropriate loan application form, duly completed and signed • Loan granted shall be interest-free • Treatment of loan shall be on first come, first serve basis • Loan granted shall be used for halal and productive ventures. etc Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

16. Procedures for granting loan • Formal application-collection and payment for loan form • Submission of duly completed loan application • Screening of loan application by loan committee • Recommendation/authorization to grant loan • Approval of loan • Payment of the loan through recovery form Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

17. Repayment of loan • Loan granted is paid back within 12 or more months equal parts • Usually there is a one month moratorium • Completion and duly signed of loan recovery form • Ensure repayment commence and completed • Confirmation of deduction from accounts dept. • Updating of loan ledger monthly Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

18. Bonds and sureties • Sureties sign bond to pay in case of default • Members who are indebted to the society not qualified • Member standing as surety in a loan yet to be liquidated up to 90% cannot stand in another loan • One person cannot guarantee loan for more than 2 persons, such person should be financially sufficient to defray the two loans Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

19. Monitoring of loan • Loan granted should be monitored to ensure that they are used for legitimate, halal and productive projects/programs. • It is the responsibility of the loan committee to educate members on how to make good use of the loan being granted • Make regular contacts to members loan were granted-visit and inspect the project e.g. Farm, block making industry, provision store etc Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

20. Recall of loan • The society has right to recall loan granted if: • There is prove of misappropriation of the loan • Member withdraws his membership • Society expel and revoke his membership • There is persistent defaults in repayment Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

21. Maximum credit limit • This should be set to: • Ensure stability of the pool • Allow everybody to draw from the pool • Depending on the availability of resources, the limit can be 150%, 200% even 300% • Ensure easy repayment and benefit of more members • Studying and monitoring of frequency of loan requests will guide the society in setting the credit limit. Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

22. Loan committee • The committee is responsible for collating and screening of loan request applications • Meeting monthly to treat loan issues • Recommend/authorise all loans for approval and payment. • Recommend refund of target savings • Monitor repayment of the loan • Prepare report on loan disbursements and repayment Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

23. conclusion • Major objective of cooperative society is to promote socio-economic well being of members, a feat which a single individual working alone cannot achieve. It is important to note that cooperative is not a BANK where people queue to withdraw money. • Therefore withdrawal of assets should be discouraged or totally banned. Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja

24. Thank you • for your rapt attention Adio Abdulrasaq, el-Ansar Multipurpose Cooperative Society, Nat. Hosp. Abuja