Good governance, accountability must be hallmarks of co-op societies, Nadir says

– as Port Mourant members receive payout

The Ministry of Labour on Sunday paid out over $7.5 million to the 91 members of the Port Mourant United Co-op Society Limited, which had been seized, audited and handed over to a neutral management team following complaints by members over a two-year period.

The audit had uncovered evidence of corruption and mismanagement of over $500 million of sugarcane farmers’ money.

Minister of Labour Manzoor Nadir, whose purview also includes responsibility for credit unions and cooperatives, told the members on Sunday that government was forced to take control of this and 20 other cooperative societies. The meeting was convened to highlight issues affecting the performance of the society as well as to make changes to its management, a press release from the Government Information Agency (GINA) said.

According to Nadir, “We are not picking on Port Mourant United just for the sake of picking on a society; we are ensuring that good governance and accountability remain.” He said the Chief Cooperatives Development Officer, ministers, and co-op officers are obligated to investigate complaints into the co-ops as failure to do so would allow the Chief Co-operatives Officer of the ministry to step in and take necessary action.

Nadir said investigations into accounting logs had unearthed delayed record keeping, irregular meetings, and to some extent a non-existent members’ list. It also revealed that the Port Mourant society did not share profits in the agreed manner with farmers.  “We have employed an auditor and I am giving him until the end of next month to complete the audit and I am promising everyone here that before we have our next meeting you are going to get a full report in writing in your hand of the spending,” Nadir said.

GINA also reported that Nadir said government will continue to rebuild the cooperative movement to ensure it plays its role in socio-economic and national development. He said certain exercises the ministry had conducted over the last four years were aimed at ensuring that good governance and transparent management are portrayed. Nadir also said the meeting was in keeping with the PPP/C’s 2006 manifesto of revitalizing cooperatives in order to benefit members. He urged more members of the cooperative to get more persons involved so that they can receive additional income and service as government will ensure that no one is denied their legitimate claim to membership.

Meanwhile, Chief Co-operatives Development Officer at the ministry Kareem Abdul-Jabar said that during 2007 members of the Port Mourant society had lodged complaints about mismanagement in the co-op; some claimed that they had not been receiving money. After investigations, a new management team was established in December last, comprising persons who were not members of the society. This measure was aimed at resolving all disputes and working in the interest of the society.

Abdul-Jabar also said co-op societies belong to the members who should be handling their affairs in keeping with Chapter 88:01 of the laws of Guyana. However, if problems arise and the society is not managed in accordance with the Act then there are regulations that give the Chief Co-op Officer the power to intervene to fix the problem and return it to the members. If after a reasonable time frame has elapsed the problem cannot be resolved, then the next option is liquidation.

“Our aim is not to destroy societies, but  to manage and control co-ops to ensure that they function properly, according to the law, and in keeping with the objectives that they were registered to achieve,” he added. The Port Mourant United Co-op society currently has 91 members. At Sunday’s meeting each member received a cheque valued $85,000.

Additionally, Nadir said roving cattle have been a major problem for the society as it has suffered losses due to cows grazing in the fields and damaging the sugarcane. He indicated that vulnerable sections of the cane fields will be fenced and fertilizers and equipment will be purchased to boost production.