Credit union claims victimization after refusing minister’s demand

Aug 30, 2017 News

A credit union is claiming victimization from a Government minister after the body refused

Minister Keith Scott

to fork out a $2M donation.
Yesterday, the Guyana Public Service Cooperative Credit Union (GPSCCU) said it is not ruling out actions against the Ministry of Social Protection and Minister Keith Scott.
The credit union explained that the regulations under the Cooperatives Societies Act Chapter 88:01 requires 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.
However, this has never been the case over the years.
The credit union said it had sought audience with former Minister of Labour, Dr. Nanda Gopaul, who agreed for a waiver of the requirement.
GPSCCU said that last year, Minister Scott requested a donation of $2M.
The credit union said that it refused and as a result, Minister Scott demanded that it pay to the Ministry of Social Protection $49,691,682.
The credit union alleged that due to this impasse, the Minister obstructed the release of the audit reports for 2011 to 2013, as a result blocking the holding of the Annual General Meetings and the payment of dividends to the members of the GPSCCU for the years 2011 to 2013.
“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 union said that its Committee of Management views the demand of 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 (Chief Cooperative Development Officer) has failed to authorize 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 their unreasonable demand of the Ministry under the misconceived notion of entitlement.”
The credit union called on Minister Scott to apologise for suggesting in a press release last month that there were fraud and corruption in the body, “which were carefully calculated to injure the characters of members of the Committee of Management…”
“If this is not forthcoming, then the GPSCCU would have no other recourse, but to seek legal remedies through the Courts of Law.”

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