The move to have credit unions fall under the purview of the Bank of Guyana (BoG) is still being studied, as government attempts to have the bank regulate the sector.
Minister of Labour Manzoor Nadir told Stabroek News that work is still in progress to have the cooperative and friendly societies regulated under Central Bank.
Last year, he had stated that credit unions have not been functioning the way they ought to be and the administration is considering tabling legislation this year to effect Central Bank’s oversight of all credit unions. Nadir has said that around $11B is being held in assets by credit unions and he bemoaned the manner in which they were being run. He said on Friday that the situation continues, noting that “most are not good” and that the Labour Ministry is still examining the issue.
President of the Guyana Co-operative Credit Union League Fitzgerald Agard, at a forum last month, stated that the body had not seen any proposed legislation concerning the intention to make the BoG the main regulatory body for credit unions and this has not changed.
An official at the organisation told Stabroek News on Wednesday that the body viewed the move as only a proposal but no policy has been crafted or developed in this regard, even though one may be in the making.
The Labour Ministry has been partnering with the Canadian Co-operative Deve-lopment Association towards developing a programme to reinvigorate interest in co-operatives. Nadir said that work is still on-going in this regard.
In January, he stated in that efforts have also been made to make internal changes and this includes having all regional co-operative officers report to the central office at the Ministry of Labour.
The Ministry has had to take over a number of co-operatives, including some in the agriculture sector, because of mismanagement or poor management. There are some 47 registered credit unions in the country, with about 27 of them active. Nadir noted that poor record keeping is one of the main problems affecting the institutions.
Good corporate governance and good management, Nadir said, would ensure that the credit unions are not only properly regulated but that are properly branded.
While noting that not all credit unions are badly managed, he gave credit to a few such as those at the Defence Force and the Guyana Public Service Union, which he said are being managed fairly well.