Replying to a question about CB Bank’s dividends during the Pyithu Hluttaw (Lower House) session on Tuesday, Deputy Agriculture, Livestock and Irrigation Minister U Hla Kyaw said, “In the fiscal year 2015-2016, more than K13.6 million in dividends on 22,746 shares from 1762 cooperative committees was withdrawn by executive members of the committees in Yangon Region townships. They paid out the dividends based on share amounts.”
Also, more than K600,000 in dividends on 1163 shares was paid out by officials of the Yangon Region Cooperative Department to the townships, he added.
No dividends have been paid since FY2016-17. “As CB Bank has got more deposits every year and its yearly profit has increased, it had to comply with Central Bank of Myanmar (CBM) regulations. It didn’t receive CBM permission to pay out dividends for two fiscal years,” U Hla Kyaw said.
U Thein Tan, Lower House MP for Hlegu township, who asked the question, also asked how the bank would take care of employees who haven’t received dividends for their shares in many years. The deputy minister said he couldn’t answer immediately but would reply in a letter later.
There are also plans to reform the country’s cooperatives, U Hla Kyaw said. The Cooperatives Department is inspecting the clubs in regions and states for compliance with the 1992 Cooperative Society Law and Memorandum of Association.
He said, “This is being done to ensure the compliance of cooperative managers with the regulations.” If they are found to be in non-compliance, action will be taken till they are liquidated.
The ministry has inspected 3743 cooperatives in Yangon and seven in Ayeyarwady Region, 600 others are still being checked, and over 700 will be dismantled.
CB Bank was formed by a merger with the Cooperative Promoters Bank and Cooperative Farmers Bank, with an initial capital of about K1.299 billion, or 129,862 shares at K10,000 each. – Translated