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Govt. seizes control of 20 co-ops

Mar 18, 2010 News

… after unearthing serious irregularities, poor record keeping

By Leonard Gildarie
Government has seized control of more than 20 cooperative societies across the country as evidence of irregularities and mismanagement surfaces.
In the Essequibo region alone, investigations have been ordered into the operations of four of them, including housing co-operatives.
Yesterday, Minister of Labour, Manzoor Nadir, who holds the portfolio for credit unions and co-operatives, confirmed that several investigations are underway, including one at Port Mourant, Berbice, where more than $500M passed through the hands of a co-operative of sugarcane farmers but profits were not shared in agreed manner with farmers.
Investigations into the books of the co-operatives found tardy record keeping, irregular meetings, and an almost non-existent members’ list.
Explaining, the Minister yesterday disclosed that under the laws of Guyana, co-operatives are mandated to keep meticulous records. Failing to do so, the law allows the authorities, in this case the Chief Co-operative Officer of the Ministry, to initiate proceedings to step in and take remedial actions.
The records include audited financial statements of the co-operative and detailed minutes of meetings.
In the Port Mourant society, it was discovered that financial records were in a mess and many of the members out of the country.
According to Nadir, based on irregularities unearthed from the investigation, the Ministry decided to step in.
For a four-year period ending 2008, it was found that GuySuCo almost paid $500M for sugarcane sold by the co-operative. However, only a few members received profit payments. The co-operative had been leased over 900 acres and the members were expected to plant the cane and sell to GuySuCo.
The Minister disclosed that over $9M in fertilizers was given to the Port Mourant co-operative is unaccounted for since there were no records to reveal where it went.
Works to the tune of $15M were supposed to be carried out but again there was no evidence to suggest actual work was done.
The Ministry stepped in last November and is working with the farmers in the Port Mourant area to straighten the problems with the intention of handing it over back again once systems would have been put into place.
Additionally, several pieces of heavy equipment owned by the co-operative raised eyebrows since it could have earned an estimated $6,000 per hour if rented to GuySuCo.
Further up the Corentyne, another co-operative, which benefited from a $300M loan from a city bank is also under the microscope.
According to the Minister, again, poor record keeping led to suspicions of deliberate mismanagement.
In the Essequibo area, a large rice family is being investigated to determine how large tracts of farmlands came into its ownership.
The idea, Nadir said, is for the Ministry’s officials to examine what went wrong and then assist the members to put systems in place to ensure that co-op once again become functional before being handed back to members.
In Guyana, there are over 900 co-operatives with 300-plus school thrifts societies and 47 credit unions.
Recently, the Minister also indicated that the credit unions are also on the radar of his officials as there are reports of serious irregularities there.

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