GPSCCU lashes out against Govt’s unilateral takeover

…accuses minister of “grabbing” credit union’s funds

Chairperson of the Guyana Pubic Service Cooperative Credit Union (GPSCCU), Patricia Went, has vented frustration that the Chief Cooperatives Development Officer has, with immediate effect, assumed control of the affairs of the credit union without proffering any reason therefor.

She explained on Monday that members of the GPSCCU Management Committee had on Friday received letters to that effect, but no reason was advanced to justify the move made by the officer. However, they later learnt in a section of the media the following day that the Management Committee’s unsatisfactory performance had caused the GPSCCU to be brought under new management.
“The Committee of Management objects to the actions of the purported Chief Co-operatives Development Officer, since there was no investigation into the affairs of the Credit Union to support the published conclusion and accusation of unsatisfactory performance,” the piqued chairperson declared.
It was later explained that although the officer spoke of the Union’s unsatisfactory performance, “the matter was rooted in the demand by the Department of Cooperatives for an undue payment to the Audit and Supervision Fund for years 2002-2013 of an alleged balance of $49,691,682.00”.
The chairperson argued, however, that the Department of Cooperatives’ claim to outstanding payments towards the Audit and Supervision Fund could not be justified, since the already audited accounts of the Credit Union for the years 2002 to 2010 reflected no such balance, as was claimed.
According to the chairperson, Chief Cooperatives Development Officer Perlina Gifth has also failed to acknowledge the waivers which were approved and granted by the previous Labour Minister, and are to date still in effect.
Went further noted that the Committee of Management was able to meet with Gifth and Minister within the Social Protection Ministry, Keith Scott, who maintained their demands to have the Credit Union pay over the disputed amount to the Department of Cooperatives.
According to Went, during a meeting held in April, Minister Scott had requested that the Committee of Management sign the Adjusted Audited Reports, showing a balance of $49,691,682.00 as owed to the Audit and Supervision Fund.
Additionally, Went said Minister Scott had promised that on the GPSCCU signing the Reports, he would immediately approve the holding of the AGM for the years 2011 to 2013, and that after the AGM, negotiations would commence on an amount of $24,381,256.
The chairperson said she considers the minister’s action a threat to “grab the funds of the Credit Union.”
She asserted that the Union remains surprised that Cabinet did not pronounce on its takeover of the GPSCCU, especially on the eve of Guyana’s 52nd Independence Anniversary.
The GPSCCU Committee of Management members have informed that they have not yet decided their next move, and are contemplating seeking the advice of the Minister of Social Protection, Amna Ally.
The step taken by the Government would severely affect the GPSCCU’s shareholders, since they would not be able to access loans or repay same at this time, given that the GPSCCU’s office remains locked. She noted that legal action is being contemplated.