New legislation planned for credit unions
Stabroek News
May 21, 2004
If all goes as planned credit unions in Guyana will soon fall under a Credit Union Act, according to co-operative officials.
According to Clive Nurse, the Chief Co-operative Development Officer (CCDO), the legislation would bring local co-operatives in tune with international standards.
"The Credit Union Act will be more detailed and specific," says Nurse, stopping short of saying how it would differ from the Co-operative Act which credit unions are presently governed by.
In a March 16 interview with Stabroek Business Robert Charbonneau, a Canadian financial consultant, who visited Guyana through the Caribbean Regional Technical Assistance Centre(CARTAC) had stated that local co-operatives needed fine-tuning.
This type of legislation is used internationally and a model devised by the World Council of Credit Unions(WCOCU) Inc., will be used to draft a local CUA, says Nurse, adding that this is being done to develop clear guidelines. Recently particular credit unions have come under criticism for allegedly operating as banks.
Consultations will be held with the credit unions and other stakeholders on the planned legislation after a week of activities in June to celebrate co-operatives.
There are 900 co-operatives in Guyana and 45 of them are credit unions.
Charbonneau in a report given to co-operative officials recommended the adoption of a 'Pearls' system of monitoring. 'Pearls' is software used by the WCOCU to monitor credit unions.
Charbonneau also recommended additional staffing and training for the co-operative division and advised that the management committees of co-operatives in general, be versed in union policies.
Nurse and officials from the Ministry of Labour, Human Services and Social Security recently attended a co-operative seminar in Barbados.
Nurse notes that the CARTAC-sponsored seminar also addressed the issues of money laundering and fraud. Emphasis was also placed on legislative best practices; accounting systems; corporate governance for credit unions; and credit-risk management, according to a GINA release.
Participants included the WCOCU; the Caribbean Council of Credit Unions(CCCU) Limited; the Jamaica Co-operative Credit Union League Limited and the National Association of State Credit Union Supervisors(NASCUS).