The Maltese central co-operative fund, its funding and role in financing co-operatives

Abstract

PURPOSE: The purpose of this study is (i) to ascertain and analyse the funding of the Central Co-operative Fund (CCF); (ii) to assess whether the CCF has achieved its intended role of utilising its funds optimally and why, or why not, this is so, and (iii) to evaluate and recommend ways on how the role of the CCF may be improved. DESIGN: This research made use of a mixed-methods research methodology. Semi-structured interviews were conducted with four CCF representatives, seven co-operative experts and nine co-operative representatives. These were followed by a review of the financial statements of the CCF in the period 2012-2019. FINDINGS: The findings indicate that over the years the CCF has managed to accumulate a substantial amount of funds. The financing role of the CCF is essential for the co-operative movement in Malta. Despite the numerous financial difficulties faced by Maltese co-operatives, the use of CCF financing by cooperatives as against other non-CCF financing has been relatively poor. CONCLUSIONS: The study concludes that the Maltese CCF is adequately funded via the 5% annual co-operative contributions. With respect to its utilisation of funds, the CCF has clearly not achieved this optimally in that it has not played its expected role in the financing of Maltese co-operatives. The study concludes that the CCF has a much increased potential role than it has at present in assisting co-operatives in their financing. VALUE: This study sheds light on the financing difficulties faced by Maltese cooperatives. It is hoped that the recommendations put forward enable the Maltese CCF to address the current deficiencies and to play a more active role in the financing of Maltese co-operatives.