— $4M still outstanding from initial fund

By Ravin Singh
THE Moruca Credit and Development Trust, a pilot project introduced a few years ago to aid in the development of small businesses in that community, is expected to be reactivated in 2016 by the Ministry of Indigenous People’s Affairs.Minister of Indigenous People’s Affairs Sydney Allicock, made this announcement on Wednesday last, during a meeting with residents of the Region 1 community.
The Sub-Regional Trust Fund, which was designed to support economic activities and small business ventures in the community, was initially funded to the tune of $23 million from the government, through the ministry.
However, for reasons unknown to Toshao Sherwin Abrams, the initiative was discontinued and $4 million in payments from approximately 88 residents is still outstanding. The remaining $19 million was paid back and is in the possession of the board.
It was reported to have been the third such financial initiative which has flopped in the region; the first two being the Guyana Agricultural Development Bank (GAIBANK) and the Institute of Private Enterprise Development (IPED).

CLIENT-FRIENDLY
With a population of just over 8,000, the credit officer said that the $23 million was distributed equitably through the granting of 293 loans but payments for 88 of those are still outstanding.
He noted that the system was a client-friendly one and featured less restrictive barriers as compared to other lending agencies.
One of the major setbacks, however, was the selection process since many persons did not qualify for the loans. The conditions under which the loans were accessible followed similar requirements for other loans, including the assessment of collateral of the person borrowing.
Additionally, he noted that issues related to repayment had also posed difficulties and contributed to the goals of the trust not being realised.
But based on the socio-economic landscape of the community, which sits peacefully in the village of Santa Rosa, the financial arrangement according to residents is one which would boost the economic status of Moruca.
Toshao Abrams too shared similar sentiments and underscored the need for the revival of such an initiative which, he said, could even help single parents and graduates of a cake-decorating and catering programme which is a revolving activity in the community.
“A lot of people in Santa Rosa are into small businesses. They cannot go to loan agencies. The per cent interest [of the fund] is very encouraging,” he said.

CHALLENGES
It was revealed that one of the major challenges in the community is the accessibility of markets and the diversification of the products.
In light of this, a call was also made for the ministry to facilitate business workshops and sessions in the community, which would be hosted by established businessmen who were once small business owners.
Making a commitment in this regard, Minister Allicock undertook to reactivate the initiative, but only after the legal evaluation would have been done, and a structured plan drafted.
He encouraged the board, which could possibly be dissolved based on recommendations, to draft a robust requirement policy which would expose any vulnerability for discrimination but be applicable to every person wishing to access a grant.
Noting that the composition of the board must be examined, the minister reiterated that it is critical to the success of the scheme, and members must be nominated or elected based on their interest, track record and ability to be a team player.
“We need to have a plan which will project and realise growth. Put aside all political and religious differences for the success of the Trust. Most times these things fail because of personality clashes, so we cannot be like crabs in a barrel if this is going to be a success,” Minister Allicock told the officials.
He noted too that in hinterland communities such as Moruca, if support is given by all stakeholders, whether financial, moral or otherwise, then ultimately, the communities and families stand to benefit.