Thursday, March 18, 2010

Financial irregularities unearthed in 20 co-ops-Gov't takes control!

Government has seized control of more than 20 cooperative societies across the country as evidence of irregularities and mismanagement surfaces.
In the Essequibo region alone, investigations have been ordered into the operations of four of them, including housing co-operatives.
Yesterday, Minister of Labour, Manzoor Nadir, who holds the portfolio for credit unions and co-operatives, confirmed that several investigations are underway, including one at Port Mourant, Berbice, where more than $500M passed through the hands of a co-operative of sugarcane farmers but profits were not shared in agreed manner with farmers.
Investigations into the books of the co-operatives found tardy record keeping, irregular meetings, and an almost non-existent members’ list.
Explaining, the Minister yesterday disclosed that under the laws of Guyana, co-operatives are mandated to keep meticulous records. Failing to do so, the law allows the authorities, in this case the Chief Co-operative Officer of the Ministry, to initiate proceedings to step in and take remedial actions.
The records include audited financial statements of the co-operative and detailed minutes of meetings.
In the Port Mourant society, it was discovered that financial records were in a mess and many of the members out of the country.
According to Nadir, based on irregularities unearthed from the investigation, the Ministry decided to step in.
For a four-year period ending 2008, it was found that GuySuCo almost paid $500M for sugarcane sold by the co-operative. However, only a few members received profit payments. The co-operative had been leased over 900 acres and the members were expected to plant the cane and sell to GuySuCo.
The Minister disclosed that over $9M in fertilizers was given to the Port Mourant co-operative is unaccounted for since there were no records to reveal where it went.
Works to the tune of $15M were supposed to be carried out but again there was no evidence to suggest actual work was done.


  1. The Government has demonstrated once again it's commitment in tackling the disease known as corruption. They are prepared to weed it out regardless of the consequences.
    The public recognizes that at the level of the Executive there is the will to prevent and fight corruption. A virtual war has been declared against corruption. Corrupt public officers when caught are charged, put before the courts and fired. No evidence of Ministerial involvement in corrupt practices has been provided. And the Integrity Commission is open for all to report corrupt activities against public officers. The Auditor General's Department is now a major plank in the Government's policy of clean and transparent governance. Corruption may persist in some areas but when it is scented the administration moves swiftly to weed it out and bring the culpable ones to justice.

  2. The government giving them a chance to have success in farming so that everybody will have something to gain in the end on there agreement between the minister and the co-ops and yet they taking advantage of the situation, corruption will never finish indeed...