Chief Cooperatives Develop-ment Officer, Kareem Abdul Jabar has ordered an external audit into the operations of the Guyana Defence Force’s Credit Union following reports of breaches of credit union rules for the acquisition of vehicles.
This was revealed by way of a press release yesterday from the Guyana Defence Force, which said that the audit will be wide and encompassing and confirmed that the current Secretary Manager and a past Secretary Manager have been sent on administrative leave to facilitate the audit. The GDF credit union has a membership of about 2,400 persons.
Jabar had told Stabroek Business in March this year that that he intended to proceed with an exercise aimed at regularizing the operations of the GDF Credit Union following a letter sent to him by registered members expressing concern over the functioning of the credit union.
Jabar had said that he had been in receipt of the communication and that he intended to move within a week to convene a meeting with members to ascertain the problems and to attempt to have them resolved.
This newspaper had been reliably informed that the GDF credit union, one of the largest of 24 such organizations registered with the Guyana Cooperative Credit Union League (GCCUL) had been experiencing difficulties associated with what a league source described as “serious operational problems.” The source had said these problems were no secret and that previous requests had been made for remedial intervention. A source told this newspaper yesterday that one of the two who have been sent home has contended that there is a vendetta against him which started since last year.
This person is said to have been trying to clean up the operations of the credit union having discovered a number of discrepancies which he brought to the attention of the army hierarchy. This person was then transferred after three months.
It is being alleged by persons in the Force that money from the credit union was being used for the establishment of enterprises like hair salons and that these were not loans. “That money is not the GDF money but the members of the credit union’s,” the source said.
Further, it is said that the GDF owes money to the credit union for various services rendered. It is believed, according to the source, that the only reason the external audit is now being allowed is because a senior functionary of the Force discovered that one of the men has purchased a vehicle through the credit union. According to sources, there is no policy regarding the purchase of vehicles at the credit union. Persons, sources revealed, can purchase vehicles and there is no paper trail to ascertain the status of the repayments for the loan taken to purchase it.
Questions are also being asked about why the two officers have been sent on leave since it was pointed out that the GDF credit union is autonomous from the Force and the officers’ duties in the Force will in no way interfere in the affairs of the external audit.
“And the only reason Secretary Manager was sent on leave is because he is collateral damage, it is all part of a vendetta,” one source contended.
Asked to provide details of the “operational” problems another source said that it appeared that the problems stemmed from the fact that while the credit union is an independent organisation it found it difficult to escape the jurisdiction of the military.
Earlier this year, the letter to Jabar cited the fact that the GDF Credit Union had not held an annual general meeting since 2009, claiming as well that its legitimate management committee “has been suspended by the force” without either a special general meeting being convened or without the members of that committee being declared unfit under regulation 56 of the Cooperative Societies Regulations made under Section 51 of the Cooperative Societies Act Chapter 88:01.
Jabar’s announcement in March that he would be engaging the GDF Credit Union came in the wake of a media release issued by the GCCUL and signed by its Public Relations Officer, Derrick Cummings, which alluded to unspecified “ominous developments” taking place within the GDFCU and calling on Jabar to use the authority vested in him “to ensure that all regulatory and governance issues are speedily resolved in the interest of the membership”.
When Stabroek Business spoke with Jabar in March he had said that his first initiative would be to convene a special general meeting of the GDFCU though he acknowledged that the fact that members were also serving in a disciplined organisation meant that he would have to proceed with caution. Asked whether he was insinuating that he might experience difficulties in proceeding with the planned investigation, Jabar said that he intended to apply credit union rules.
He said that at a recent meeting between local credit union officials and President Donald Ramotar the assurance had been given that the President’s support and cooperation could be relied on in the execution of duties associated with the running of the cooperative movement.
A source close to the GCCUL said that the Chief Cooperatives Development Officer is within his right to order the investigation. The source said that when the report of the audit returns, the Chief Cooperatives Development Officer could either apply for a court order to assume control of the credit union, seize the accounts, or appoint a committee to manage the society. Further, he can also call a general meeting to put in place a new committee.
When Stabroek News made contact with Jabar last night he said he was on leave and will be returning to work on September 10.
