GPSCCU objects to takeover of credit union
The padlocked Guyana Public Service Co-operative Credit Union (GPSCCU) Hadfield Street office, with an ISS security guard safeguarding the premises. 
Photos by Delano Williams
The padlocked Guyana Public Service Co-operative Credit Union (GPSCCU) Hadfield Street office, with an ISS security guard safeguarding the premises. Photos by Delano Williams

 

GPSU First Vice President Dawn Gardener

THE EMBATTLED Management Committee of the Guyana Public Service Co-operative Credit Union (GPSCCU) is plotting its next move as it objects to a takeover by the Department of Cooperatives, Ministry of Social Protection.

Late last week, the Social Protection Ministry announced that the Chief Co-operative Development Officer (CCDO) will take immediate control over the GPSCCU. It was explained that the decision is as a result of poor performance on the part of the management team. But on Monday, GPSCCU Chairman Patricia Went, backed by GPSU First Vice President Dawn Gardener, registered the management committee’s objection to the ministry’s decision as she refuted claims of unsatisfactory performance.
According to Went, the decision of the ministry is rooted in the demand by the Department of Co-operatives for “an undue payment of the Audit and Supervision Fund for the years 2002-2013 of an alleged balance of $49,691, 682.”

On the eve of Guyana’s 52nd Independence Anniversary, the chairman and members of the management committee were served with letters from the CCDO Perlina Gifth, advising that in keeping with Regulation 56(2) of the Cooperative Society Act, Chapter 88:01, she assumes with immediate effect, the credit union.
In the letter to the chairman and members, no reason was given for the cease order, however, in a press statement issued the same day, the ministry said that the laws provide for the accounts of every Credit Union (Society) to be audited at least once annually, after which an Annual General Meeting (AGM) should be held to discuss important matters including the determination and payment of dividends to members.
However, according to the Ministry, GPSCCU audits were not done expediently.

GPSCCU Chairman Patricia Went

But the Chairman of the embattled committee maintained that the takeover is as a result of the refusal on the part of her committee to issue the undue payments to the Department of Co-operatives. “The Credit Union contends that the Department of Cooperatives’ claim to outstanding payments towards the Audit and Supervision Fund could not be justified given that the already audited Accounts of the Credit Union for the years 2002 to 2010 reflected no such balance, as was claimed,” Went told reporters during a press conference at the Critchlow Labour College (CLC).
The situation, Went said, is further compounded by the Department of Co-operatives refusal to acknowledge waivers which were approved and granted by the previous Minister of Labour, Human Services and Social Security, which to date is still in effect.

On the issue of the GPSCCU’s accounts, the chairman told reporters that it was the CCDO, who in a letter dated February 20, 2014, authorised the Audit of Financial Statements for the years 2011 to 2013; however, the process was subsequently halted.
“During the course of the Audit, the Credit Union was informed by the Guyana Credit Union League (GCUL) that the Ministry through the Assistant CCDO wrote the League advising that all Audits in progress for cooperatives were to be halted, until further advised,” Went recalled.
As a result of the delays in the process, the management committee in a letter to the CCDO dated August 31, 2016 requested that audits up to and including the year 2015 be undertaken on resumption but the CCDO rejected. That resulted in the planned November 22, 2016 AGM being postponed.
“…more delays ensued following the failure of the said officer to release the audited financial statements for the years 2011 to 2013. To date these statements have not been released by her to trigger the much-delayed AGM,” Went further explained.
“The responsibility for preparation of financial statements rests with the management of the Credit Union, yet the Department of Co-operatives claimed to have found some flaws, which were to be adjusted by the Auditor, Maurice Solomon on the insistence of Ms. Gifth,” the Chairman added.
In addition to the figure on the “Audit and Supervision Fund” being reportedly incorrect, the Department of Cooperatives has reportedly refused to acknowledge waivers of contribution to the Audit and Supervision Fund which was authorised by then Minister of Labour, Human Services and Social Security, Dr. Nanda Gopaul.
Waived funds were used by the GPSCCU to finance its Education and Development Programme but now the department is demanding that the monies be paid over, spanning a number of years.
Although the former labour minister in a letter to the Social Protection Minister Amna Ally on February 10, 2017, confirmed that he granted the waivers to the credit union, the ministry and the Department of Co-operatives as recent as April 28, 2018 called for the monies to be repaid.
In an April 20, 2018 meeting, Minister Keith Scott, who has responsibility for Labour, requested that the Committee of Management sign the Adjusted Audited Reports showing a balance of $49.691M as owed to the Audit and Supervision Fund.
According to Went, in that meeting Minister Scott said that once the amended reports are signed, he would approve the holding of the AGM for the years 2011-2013 immediately, and that negotiations will commence after the AGM on an amount of $24.3M.
“The Committee of Management considers the threat by the leadership of the Cooperatives Department as unprofessional and the use of bullism to achieve the objective of grabbing the funds of the Credit Union, showing scant regard for the payment of dividend rightfully due to its shareholders,” Went said. She noted that the management of the Credit Union will meet and decide on the way forward.
Weighing in on the issue, the GPSU First Vice President said it is hoped that the Minister of Social Protection Amna Ally takes control of the issue as against a junior minister. Minister Ally had given an undertaking to “get back” to the management on the issue.
Gardener said because of the decision of the Ministry and Department of Co-operatives the operations of the union will impacted negatively. “Nobody will have access to borrow, neither nobody will have access to repay, so it will affect negatively, both sides,” she posited.

When the Guyana Chronicle visited the GPSCCU Hadfield Street office it was closed for business with notices indicating that the office will be reopened on May 30, and that workers should visit the Social Protection Ministry.

 

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