Assessing governance quality of Boikago savings and credit co-operative in the North West Province

Abstract

The focus of the study is based on a cooperative called Boikago Sacco which is based in Mafikeng, Northwest province in South Africa. For any organisation to perform effectively and efficiently, quality governance plays a pivotal role. The members of the board who are the custodians of the governance of the Co-operative Financial Institution must ensure quality governance and its regulations. Hence, the objective of this study is to assess the quality of governance in the financial cooperatives institutions. In ascertain the effectiveness of the cooperative various research, methodology, and design are important factors of designing how reliability and validity of the study were measured. including literature review. Factors and attributes which are explored to determine the governance effectiveness in the study are the following: size of the board , expertise of the board, powerful chief executive officer, audit committees, board activity and corruption and maladministration of the board . It is found that the implementation of governance factors and attributes contribute effectively to the positive performance of the financial cooperative institution in terms of growth of the capital and the assets though the growth of membership of the co-operative, however in the case of Boikago Sacco is at a slow rate. The board must come with strategies that could enhance growth on both membership and assets through the usage of the marketing accelerators.