Public Service Union requests for BOI into “unauthorized spending” -Interim Chairman shares different views

Jul 20, 2019 News

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The Guyana Public Service Union (GPSU) at a press conference on Wednesday stated that it has sent a letter to President David Granger, requesting him to install a Board of Inquiry (BOI) into their credit union.
This follows what is being called “unauthorized” spending on the part of the Interim Management Committee (IMC), a committee which is a part of the Guyana Public Service Co-operative Credit Union Limited (GPSCCUL).
At the press conference, which was held at the union’s headquarters, President of GPSU, Patrick Yarde, had complained of monies being spent on several “unnecessary contracts.”
According to Yarde, some of those contracts were in excess of US$25,000 ($5.2 million).
The president of the union added that the IMC is currently abusing its powers. “We would like the general public to be aware of the unauthorized expenditure that has incurred by the Interim Management Committee following contracts which were awarded to a company or individual without going through the proper procurement procedure in excess of $10 million for construction work.”
Last year May, the Chief Co-Operatives Development Officer took complete control of the credit union from the Management Committee because it failed to comply with laws and regulations such as preparing the Annual General Meeting (AGM) reports of audit reports.
Subsequently, the IMC was put into place to manage the union, but some old members of the GPSU were against such actions.
Yarde expressed that the executive members are the ones who permit the use of $1M for projects by the elected Management Committee at the AGM, but the IMC went overboard with its command and with their spending for their contracts.
He said that a number of those contracts were awarded to companies and individuals without going through the proper procurement procedures.
One of those contracts he mentioned was the $10 million that was spent for construction works. Another contract of $5.2 million was spent for six human resources- related activities, which he adds is “ridiculous when you get in depth of what was done.”
The union’s president identified other charges of $2 million spent for air conditioning, $2.5 million for telephone services and $1.6 for reviewing the security services.
In June 2018, the Interim Management Committee (IMC) was installed to oversee the affairs of the Guyana Public Service Cooperative Credit Union (GPSCCU), and had been reinstated.
Their reinstatement had followed a decision by Justice Gino Persaud to discharge an Interim Order, staying the decision of the Chief Cooperatives Development Officer, to assume and or exercise control of the affairs of the union.
Yarde claimed at the press conference that when the management committee was removed in May of last year, the employment cost increased from $3.8 million to $6.9 million to April of this year.
He said that the Union is also investigating another allegation where it is said that $6 million was paid in bonuses during this period. Nonetheless, he assured the members of the credit union that he and his team are committed to ensuring that their monies are intact and recovered.
Yarde stated that members are frustrated by the process of getting loans; hence, over 400 members have left the union, withdrawing over $38 million in savings. He also stated that he was informed that in the coming weeks, 10 persons were expected to travel to The Bahamas to attend a conference, which would cost the union some $10 million.
For these plethora of reasons, and because the union is now under the jurisdiction of the Ministry of Social Protection, Yarde has called for the President to mount a Board of Inquiry into the affairs of the union.
Reporters were told by the union’s president that Minister within the Ministry of Social Protection demanded the union to pay approximately $50 million to the Ministry of Finance “audit and supervision” services.
Yarde said, “There was an agreement with the previous minister that the credit union keep that money because it is funds for audit, supervision and development, and that the credit union conducts the audit and to pay for it.
“That was approved by the minister and there was no dispute about that, and that we report on the development process.”
He related that Minister Scott wanted to cancel the agreement. The costs were then cut by 50%. Scott demanded him to pay the reduced monies, but the union refused. It was however brought to his attention afterwards that the IMC had paid over $25 million to the Social Protection Ministry for that purpose.
Chairman of the IMC, Trevor Benn, had different opinions on the matter. Benn related that the GPSU is frustrated and bitter because it lost their court case against the IMC. Hence, they are using the media for attention.
He says that the CCDO manages the affairs of the credit union, so it does not need permission to use the union’s monies or to award monies to contracts.
Benn went on to say that fewer than 300 members have left the union, not because of the loan process, but because some of them have migrated and some have passed.
Benn added that membership has increased by some 1300.
On the monies that were spent on construction, the chairman of the IMC noted that when they took over the union from the GPSU, “the building was in a derelict state.”
To this, he explained that monies had to be spent to renovate the building. He did confirm that air conditioning units and a new intercom telephone system were put into the place, but those were improvements that were required to provide a conducive environment with comfort to the members of the union.
Benn states that for the construction of the building, roughly $9 million was spent. He firmly believes that Yarde is on this royal run around because they lost their case at court against the IMC.

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