The Volta Electricity Company of Ghana (ECG) Employees Co-operative Credit Union is to provide hostel facilities for tertiary students in the Ho Municipality as a subsidiary venture.
The Board has accordingly acquired plots of land for the project in readiness for the project.
The venture was unanimously approved at the 10th Annual General Meeting (AGM) of the Union at Ho on Friday.
By a vote of 59 against 32 the AGM however blocked a proposal by the Board for members to retain 50 percent of interest due on their savings for investment.
Total interest on savings for the financial year, 2005-2006 stood at 251.6 million cedis.
Delivering the Financial report for 2005-2006, Mr Justin Justice Dandjo Board Chairman said the Union's total investments stood at 733.4 million cedis and cautioned members that their failure to get back their interests was weakening the financial base of the Union.
He said the "Total or part withdrawal of savings can be likened to a house owner winning sand around the foundations of his building. The end result of his action will be the collapse of the mansion".
Mr Dandjo said the total interest and dividends paid out to members in the past four years stood at 636.3 million cedis, which in addition to 251.6 million cedis to be paid this year would bring total interest and dividends paid out to 888.0 million cedis.
"Can you imagine what this amount can do for the Union if retained"' he queried. He said total income for the period stood at 616.8 million cedis while net surplus was 108.0 million cedis.
In his keynote address, Dr Smart Yeboah, Tema Regional Manager of the ECG urged the Union to step up membership drive so as to "minimise the risk factors for each member".
"You also need the increased capital so that you can effectively spread the investment net wider. You must at all times ensure that capital growth is a multiple of the annual GDP rate for sustainability", he advised.
While commending the increase in savings, which stood at 34 percent, Dr Yeboah cautioned, "savings withdrawal is an item that needs to be watched in order not to bankrupt the scheme prematurely".
"The important thing is that whatever we personally need must be based on our own investment priorities rather than for whimsical purposes. A want must never precede a need as wants are based on proclivities", he cautioned.
