–by defunct cooperatives, friendly societies

HEAD of the Presidential Secretariat, Dr Roger Luncheon, said yesterday that the Cooperatives and Friendly Societies Sector is now troubled, and that this has quite a bit to do with defunct and near defunct entities.

He said further that Cabinet was recently informed that disposal of the assets of the defunct cooperatives and friendly societies was being undertaken by means other than those prescribed by the law.

“Cabinet took an exceedingly dim view of those practices, and has in essence endorsed the recommendations of its labour sub-committee; the recommendation called for aggressive enforcement of those applicable provisions in the act with regards to the winding up of defunct cooperatives and friendly societies,” Luncheon disclosed to his weekly post-Cabinet press briefing.

Speaking at the Office of the President complex in Georgetown, he said Cabinet recognized that this aggressive approach would need to be supported by forensic audits and consultancies, and has accordingly approved them.

“This matter came to Cabinet’s attention because the assets generally involved land, and in Guyana land is quite an emotive subject. Acquisition and ownership oftentimes can lead to enormous trials and tribulations to those who are involved.

“In the case of the defunct cooperatives and friendly societies, a pattern evolved, or was seen to be evolving, where individuals purporting to exercise some authority on behalf of these defunct societies, and particularly their membership, were engaged in the disposal of these immovable assets.

“Some of them have already been brought to the attention of the court. Our emphasis is on the infringement of the act. There is irrefutable evidence that this spectre of unauthorized illegal behaviour is actually accelerating,” Dr Luncheon said.

He pointed out that the establishment and growth of this sector has been enabled by constitutional provisions and by statute.

“The administration and the regulation of the sector has been statutorily assigned; and the Ministry of Labour, Human Services and Social Security, specifically the division in labour that is, has been the centre of those operations.

“You should know that there is no lack of statutory requirements and process where winding up is concerned. It is fully elaborated in the act,” Dr Luncheon declared.

(By Telesha Ramnarine)