Dear Editor

THE regulations made under the Cooperatives Societies Act Chapter 88:01 require that cooperatives pay to the Audit and Supervision Fund a maximum of either ten percentage (10%) on Net Annual Profits or one present (1%) of the working capital of the registered society; and this should be used for the benefit of the contributing credit union.

This has never been the case over the years. Against this backdrop, the Guyana Public Service Cooperative Credit Union (GPSCCU) sought audience with the then sitting Minister Dr. Nanda Kishore Gopaul, who agreed and instructed that a waiver of the requirement under Section 55 should be upheld in the case of the GPSCCU and this edict was conveyed by CCDO Ms. Carol Persaud.  Subsequent to the election of the APNU+AFC Government in 2015, the responsible minister acknowledged the existing circumstances, in a correspondence to the Secretary/Manager of the GPSCCU Ltd.

In that very correspondence, he requested a donation for the GPSCCU Ltd. of two million dollars; the request was approved by the Management Committee and the full amount was paid over as requested. A subsequent press release by the Hon Minister Keith Scott committed an act of defamation on the Committee of Management and his predecessor Dr. Nanda Kishore Gopaul, because the Management Committee refused to comply with another ridiculous and outrageous demand by Hon. Minister Scott that the GPSCCU Ltd pay over to the Ministry of Social Protection $49,691,682. Due to this impasse the following occurred:1.

The minister has obstructed the release of the Audit reports for 2011 to 2013, thus consequently blocking the holding of the Annual General Meeting and the payment of dividends to the members of the GPSCCU Ltd. for the years 2011 to 2013.2. The request by the GPSCCU Ltd. to the Ministry of Social Protection for the Auditors to continue and complete the Audits of the GPSCCU Ltd. for 2014-2016 were also denied by the ministry.  The Committee of Management views the total demand by Hon. Minister Keith Scott as contrary to the spirit and good intention of his predecessor’s decision and has attempted to impose a new decision retroactively.

To date, because of the existing situation, the CCDO has failed to authorise the release of the audited financial statements for the period 2011-2013, thereby, holding the membership hostage  hoping that the Management Committee will accede to the unreasonable demand of the ministry under the misconceived notion of entitlement.  The Management Committee stands by the belief that the intention of the Cooperative Societies Act of the Cooperative Republic of Guyana does not require any cooperative to suffer the ignominy of financial bullyism by the ministry, but instead to benefit from a controlled development process.

The previous Minister Dr. Gopaul saw the merits of the GPSCCU’s representation and instructed in accordance with powers granted under the Cooperative Societies Act Section 55 that the funds be retained and used for the purpose of development of the GPSCCU.  It is unfortunate that current posturing of the CCDO and the sitting minister has labelled this an “unfair advantage.”Given the circumstances of the minister’s press release dated July 24th 2016, the GPSCCU is of the view that the minister should immediately issue to the Committee of Management of the GPSCCU and the predecessor of the minister an unqualified apology for the imputations in the press statement of wrong- doings fraud and corruption which were carefully calculated to injure the characters of members of the Committee of Management and the predecessor of the sitting minister.

If this is not forthcoming, then the GPSCCU would have no other recourse but to seek legal remedies through the Courts of Law.

Regards,
Guyana Public Service Co-operative Credit Union Limited