Selebi-Phikwe — The just ended retrenchment exercise at BCL and Tati Nickel Mines has adversely affected the financial standing of Selebi-Phikwe Miners Savings and Credit Co-operative Society (SACCOS), a cooperative official has revealed.
SACCOS lost 25 members through retrenchments and this has reduced members' savings by P571,208,15 and resulted in a loss of share capital of P12,500.
More than 70 percent of its total membership are BCL employees.
The closure of the mine will automatically lead to dissolution of the society, as it will be directly affected in terms of loss of membership and reduced members' savings.
She indicated that the mine closure will result in most of the members withdrawing their savings from the society while others will be forced to clear their outstanding loan balances with the accumulated savings.
Loss of interest on loans, which is the society's major source of income, will be experienced due to the reduction in the lending capacity.
On the other hand, the possible closure of BCL mine will directly affect the retail cooperative businesses in Selebi-Phikwe, that is, the Selebi-Phikwe Consumer and Mmadinare Diary Co-operative in terms of loss of membership that will be experienced through the possible migration from town by members who would have lost their jobs.She said it would also lead to the reduction in members' savings because most members who have invested their money in the societies in the form of member's savings are likely to withdraw their savings on losing their jobs.
Their loss of monthly income in the form of salaries will lead to a decline in the societies' sales turnover.
Kekgobilwe also said some businesses have rented out the co-operatives property and possible closure by these tenants due to possible loss of business will greatly affect property owners.
The retail society currently has an employment rate of about 80 and the decline in business operations will lead to retrenchment and loss of income by employees.
Matshelo SACCOS, on the other hand, is made up of employees of Selebi-Phikwe Consumers Co-operative Society, so the impact of the mine closure on the society's business, which is likely to lead to possible staff retrenchment by the employer, will have the same effect as those of SACCOS.
Kekgobilwe further said the co-operative business sector in Selebi-Phikwe is mostly dependent on the employee population at the mine.
She noted that most of these co-operatives are providers of specified services, which are directly linked to the existence of the mine.
"There is need for diversification of these services to include those which will sustain the operations of the societies in the event of the mine closure to cater for other service users who are possibly members of such co-operatives," says Kekgobilwe.
She indicated that diversification initiatives already coming up in Selebi-Phikwe include the mobilisation of the Selebi-Phikwe Estate Development and Management Group. It has a share contribution of P5,000 and a joining fee of P100 per member. Mmasebotswa Poultry Processing and Marketing Cooperatives was registered in March and has a membership of 22. The joining fee is P500 and the share contribution is P10, 000. It will provide a market for poultry farmers in Mmadinare, Selebi-Phikwe, Bobirwa and Tswapong.
Mobilisation of the craft market is ongoing and its aim is to come up with a market for craft producers in Phikwe and Bobirwa.
