Guyana Public Service Cooperative Credit Union
Attempt by Chief Coop Development Officer to take over management frustrated, but final appeal to be heard in May
Stabroek News
March 28, 2003
The Chancellor of the Judiciary, Desiree Bernard has ordered the Chief Cooperative Development Officer (CCDO), Lilian Miller to appoint a representative to oversee the operations of the Guyana Public Service Cooperative Credit Union (GPSCCU).
This follows an attempt by Ms Miller to take over the management of the GPSCCU last Thursday.
Sources told Stabroek News that Miller in the company of three policemen went to take over the management of the credit union from the current Secretary Manager last Thursday, but was told that she could not do so without a court order.
Legal sources, however, questioned the validity of that position as it was noted that Miller had made an order two years ago in the exercise of her statutory powers appointing a new committee headed by Roy Mc Arthur to take over the operations of the credit union but that order had been frustrated by the existing committee which had filed a variety of legal proceedings. There was no injunction or court order in place restraining her from carrying out her order.
The attempted takeover was done the day before the scheduled hearing and determination of the appeal. The appeal has been put forward to May 15 and May 16. It was the fourth adjournment when it came up before the Court of Appeal headed by Chancellor of the Judiciary, Desiree Bernard. The hearing was previously scheduled for February 28 but was postponed to March 21 due to the absence of legal counsel for the GPSCCU who had not been present on the last two occasions.
The GPSCCU has filed a motion for a review of a ruling given by Justice Claudette Singh, a Justice of Appeal, when she dismissed an application by the existing management committee for an injunction restraining the CCDO from appointing any new member to the existing Management Committee to manage and/or control the affairs of the GPSCCU.
In her summary when dismissing the application, Justice Claudette Singh noted that on March 25, 2002, Justice Winston Moore had discharged an Order Nisi made in favour of the appellants by which they had sought a right to be heard prior to being deprived of their rights to manage the GPSCCU.
She said the GPSCCU has since appealed Moore's decision, hence the reason for the application for a stay of execution by way of an injunction to preserve the subject matter of the appeal.
The GPSCCU had sought a discharge or variation of Justice Singh's order and it is this matter that had come up before the court.
In her affidavit in answer to the motion filed by the GPSCCU, the CCDO, Lilian Miller said there were no proper grounds substantiated by factual evidence in the applicant's affidavit dated May 17, 2002 on which the judge could have found in favour of the applicants.
Miller said that her predecessor had informed her that at the end of May, 1998 she had received notice by way of letter that the committee had breached the rules of the Public Service Credit Union - Rule 30 by removing the compulsory signature prescribed by statute of the secretary to that of the treasurer.
The latter, without lawful authority, had given arbitrary notice in writing to the National Bank of Industry and Commerce that his was the only compulsory signature and executed a societies' resolution regarding banking to that effect. Thereafter Miller said that large sums of money were withdrawn from the GPSCCU account number 670-442-3.
A motion was subsequently moved for the removal of the committee of management and the election of a fresh committee as a result of the said committee paying out certain sums of money to officers in contravention of a decision taken by the said management committee to discipline several officers (whereby they would be denied pay) for offenses found to have been committed as well as making unauthorised increases in stipends and benefits to themselves.
In October 1998, Deloitte and Touche, who were appointed in November 1997 to audit the books of the GPSCCU for the period 1994 to 1997 declared their inability to provide a proper report due to material weaknesses in the internal accounting control and procedures for the year ending December 31, 1994.
As a result of this chaotic state of affairs, Miller said that her predecessor Avril Henry, made an order under Section 37 of the Cooperative Societies Act appointing retired public servant Claude Muller to enquire into the constitution, working and financial condition of the GPSCCU. Miller received the report in March, 2000.
The Interim Report, Miller said, substantiated the allegations made and revealed inter-alia that the committee was guilty of flagrant disregard of the regulations by failing to observe the rules regarding defaults in repayment, extensions, misapplication of purposes and recovery of loans; failing to prepare the annual statement of accounts and balance sheet in a timely manner, since 1994, and which were necessary to prepare the annual audit reports; and failing to observe the duties of the treasurer (regulation 55) and had continued operations in a manner which threatened the ability of the credit union to be of service to its members.
Miller, who is represented by the Attorney General and Minister of Legal Affairs Doodnauth Singh and attorney-at-law, Priya Sewnarine, said she was advised that the present application is an abuse of the process of the court, frivolous and vexatious and should be struck out.
Chancellor Bernard ordered that instead of hearing the appeal against the order of Justice Claudette Singh (in chambers), which was an order made within the ambit of the appeal, the main appeal should be heard as the same issues were involved and the entire matter could be disposed of. Ms Miller made her order appointing a new management committee in 200l.
