GPSU calls out IMC on “unauthorised” exorbitant spending

…writes president to request BoI

The Guyana Public Service Union (GPSU) has written to caretaker President David Granger to request a Board of Inquiry (BoI), following what the organisation has described as “unauthorised” spending on the part of the Interim Management Committee (IMC) of the Guyana Public Service Co-operative Credit Union Limited (GPSCCUL).

On Wednesday, following an Executive Council Meeting, GPSU President, Patrick Yarde, called a press conference wherein he complained of monies being wasted on several unnecessary contracts. Some of the contracts, according to him, were in excess of US$25,000 for activities for merely six staff members.
“We would like the general public to be aware of the unauthorised expenditure that has (been) incurred by the Interim Management Committee following contracts (which) were awarded to a company (or) individual without going through the proper procurement procedure (and involving) in excess of $10 million for construction work,” Yarde explained.
He noted that executive members usually permit the use of $1 million for projects by the elected Management Committee at the Annual General Meeting. However, the Interim Committee has overstepped its authority by spending vast amounts of money on different occasions.
“Another contract of US$25,000 (was spent) for human resources-related activities, and this is so ridiculous when you get in depth of what was done. You (find) they engaged a human resource person for US$25,000 to engage six people,” Yarde charged.
He further charged that another $2M was used for air conditioning, while $2.5M was handed out by the Committee for telephone services and $1.6M for reviewing security systems.
In June last year, the High Court, in an order, reinstated the Government-installed Interim Management Committee (IMC) at the GPSU Credit Union. This was done after High Court Justice Gino Persaud had discharged a previous interim order which was granted to the old management committee to stay the decisions of the IMC until the matter was resolved.
The new order therefore means the Government-installed Chief Co-operative Development Officer and Commissioner, Perlina Gifth, was again placed in charge of the co-op credit union.
The issues stem from allegations of financial impropriety wherein officials have been accused of excessive spending for bonuses and travel to the tune of some $32 million. Some have even alleged that a senior official at the GPSU had paid out some $700,000 in bonuses to himself.
Yarde claimed on Wednesday that since the new body had started managing the affairs, employment costs have increased significantly.
According to him, “In May last year, the employment cost was $3.8 million. In April this year, the employment cost increased to $6.9 million”.
The GPSU President has said the Union is also investigating another allegation, wherein $6 million was paid in bonuses during this period.
Nonetheless, he sought to remind members of the Credit Union that he has committed to ensuring their savings remain intact, or at least recovered.

Audit
Yarde told reporters that Junior Social Protection Minister Keith Scott demanded that the Union pay over about $50 million to finance “audit and supervision” services. However, he held out that there was another arrangement under the previous Labour Ministry for the Credit Union to keep its finances and conduct its own audit.
“There was an agreement with the previous Labour (Ministry) that the Credit Union keep that money, ‘cause it is funds for audit and supervision and development; and that the Credit Union conduct the audit and pay for it. all this was approved by the Ministry, and there was no dispute about that,” he argued.
This move was intended to be cancelled by the Junior Minister, who reportedly demanded that the monies be paid over to finance the audit. Having recognised the Union’s reluctance, Yarde said, the audit cost was even reduced by as much as 50 per cent by Minister Scott.
Again, the union president said, this was turned down by the organisation. It was, however, later brought to his attention that over $25 million had been paid over by the IMC to the Social Protection Ministry for this purpose.
Yarde maintained that these monies were handed over unlawfully, as the decision would have had to be deliberated at the Union’s Annual General Meeting.
Further, he said, “According to the law…instead of paying taxes, the Credit Union pays that; and that money is to be used to audit the accounts to make sure things are done properly, and for the development of the Credit Union. Like any other financial institution, it would require refinement, technology, and a variety of other different things; and that money, according to the law, that percentage of your surplus, must be put aside for that purpose”.
As such, the GPSU President made it clear that he has written to the Caretaker President, requesting an inquiry into the present situation. In addition, he demanded urgent responses from the Social Protection Ministry in regard to the audit, as he questioned the extension of the IMC which has been functioning for over one year now.
Yarde threatened strike and protests should the call for an inquiry be ignored by Granger, though he said it would be a last resort.