The case against installing an IMC at the GPSCCU

Jun 03, 2022 Letters

Dear Editor,

I have been paying keen interest to the imbroglio in relation to the Guyana Public Service Cooperative Credit Union, and would be grateful for space in your paper to comment on it.
The previous Committee of Management was removed from the Guyana Public Service Cooperative Credit Union (the Credit Union) in May 2018. It was replaced with an Interim Management Committee (IMC) lead by Mr. Trevor Benn.
The factual and legal basis for the Chief Co-operative Development Officer (CCDO)’s intervention in the affairs of the Credit Union in 2018 were as follows:
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1. The Committee of Management failed to hold Annual General Meeting (AGM) since 2013;

2. The Committee of Management failed to pay members dividends since 2011;

3. The Committee of Management failed to pay Audit and Supervisory Fund contributions;

4. No external audit of the Credit Union was done since 2013; and

5. Overall mismanagement of the Credit Union.

However, since the advent of the IMC and the recent election of a new Committee of Management, all of the above have been rectified and the Credit Union has been on an upward trajectory in all areas of operations. Please note the following:
1. An AGM was held on April 11, 2021;

2. Over G$280M in interim and final dividends were paid to members;

3. The Credit Union has paid over $100M to the Audit and Supervisory Fund;

4. The Credit Union’s audit is up-to-date, with 2021 audit currently being undertaken;

5. Audit for the period 2013 to 2017 uncovered over $100M missing from the Credit Union’s coffers;

6. Overall membership of the Credit Union has increased exponentially, at a rate of over 300 new members per month;

7. The Credit Union has introduced three (3) new loan products:
• Mortgages – up to $15M
• Vehicle loan – up to $5M
• Study loan – up to $5M

8. Members can borrow up to $15M, previously the limit was $1M;

9. The Credit Union’s Hadfield Street office has been transformed into a modern facility to enable members to conduct their business in relative comfort;

10. A plot of land has been purchased for the construction of a new and larger office complex to cater for the needs of members, such as a medical clinic, pharmacy, dental clinic and supermarket, etc.;

11. Employees’ salary was increased to livable wages and their conditions of employment improved with the introduction of a medical scheme and pension plan;

12. The first Collective Labour Agreement signed with the CCWU since the 1990’s; and

13. The renovation of the Hadfield Street Avenue for the relaxation and enjoyment of members.

Plans that are also in the pipeline:
1. The introduction of ATM machines so that members can access their funds at any time;

2. The introduction of a mobile app to allow members to check their accounts online; and

3. The building of sub-offices in Regions # 3, 6 and 10.

Therefore, it is clear that the current problem facing the Credit Union is an internal one, amongst members of the Committee of Management; a struggle for the hearts of the members, for them to determine who they want to lead their Credit Union.
It is not an operational issue that is affecting the progress and work of the Credit Union, but merely a political one. Therefore, there exists no factual or legal basis for the intervention of the Chief Cooperative Development Officer to consider installing an IMC.
The members have already spoken by way of a petition, signed by more than the statutorily required number of persons, that mandates a Special General Meeting to settle the matter.
What the CCDO can do, is use her good office to ensure that such a meeting, as mandated by Regulation 16 of the Co-operative Societies Regulations, Cap. 88:01 and the members, is held to the satisfaction of the members. Failing this, the Court could be asked to see to it that the will of the members is adhered to.
The current team led by Mr. Benn has done tremendous work at the Credit Union in just under four (4) years, moving the organization to the point of rivaling any of the smaller commercial banks.
It is right and fitting that the team be allowed to function and execute its vision. Even the Honourable Ministers of Labour and Tourism acknowledged the performance of the management team in their respective remarks at recent Credit Union events.

Sincerely,
Joshua Luke

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