Public Service Credit Union spent $3.5M to fight members
Public Service Credit Union spent $3.5M to fight members
…Executives slapped with $1M court cost each
By Zena Henry
Kaieteur News – The Guyana Public Service Co-operation Credit Union (GPSCCU) Committee of Management (COM) expended some $3.5m in lawyer fees fighting against members who took them to court after ignoring a petition for a special general meeting. It was stated in that petition, the Credit Union members’ intention to vote out the majority of persons heading the organisation.
Kaieteur News was told by a usually reliable source that after the GPSCCU and its COM were hauled before the court, it retained the services of Attorneys- at- Law Paula Nicholson and Adrian Smith as well as Leslyn Noble who stood for herself, as a member of the COM and respondent in the matter. Noble was said to have also represented COM members except Chairman, Trevor Benn and Vice Chairman, Patrick Mentore.
A major rift within the Credit Union’s COM became public in May after moves were made with a majority vote to remove Benn as Chairperson for actions they said were unbecoming of his office. Benn did not take his removal lightly, as he called his colleagues’ action a ‘coup d’état.’ He claimed that no warning or information about his behaviour was given, and that his removal was done in his absence. Karen Vansluytman-Corbin nonetheless replaced Benn as Chairperson.
Trevor Benn with Credit Union Members during the signing of the petition in May
In a move to save his post, Benn was able to secure the names of hundreds of Credit Union members after bringing forth a petition for a General Meeting with 14 days. The petition had stated clearly that the members would also decide on voting out the majority of the Committee, with a specific statement that nine of the COM members should never serve on the Credit Union Board again.
Mentore, had said in May that he did not support the manner in which Benn was removed from his post, especially since it was done in his absence. As Vice Chairman, Mentore had issued a notice for the Special General Meeting since he said the petition was received by the COM and had secured more than 25 signatures of members, the legal requirement for the holding of the special meeting. As the feud within the Credit Union hierarchy widened, Mentore’s notice was rescinded by the other faction that claimed that it was not properly executed. No other date was offered for the special meeting and it appeared as if the COM would not adhere to the members demand.
This prompted three Credit Union members to seek legal intervention in getting the COM and the GPSCCU to call the special meeting. The matter came before High Court Judge, Navindra Singh who ruled on August 30 last, that the GPSCCU members were in their right to demand the Special General Meeting under Regulation 16 of the Cooperative Society Act. The Judge refuted the respondents’ argument that the members’ request for the meeting constituted a dispute. Kaieteur News was told however that the $3.5m in lawyer fees would have been paid from contributions of Credit Union members- the very people who brought the case against the COM. The question is also floating as to whether the COM member who made an appearance in her legal capacity was paid from the $3.5m.
The High Court has nonetheless instituted a hefty cost of one million against COM members Rajdai Jaganauth, Leslyn Noble, Ruth Howard, and Karen Vansluytman-Corbin to be paid by October 22. Trevor Benn and Patrick Mentore declined to contest the court challenge made by the members. The Court observed also that Mentore performed his duty as was mandated under Regulation 16 of the Cooperative Societies Act Chapter 88:01, and therefore was not required to pay costs to the three applicants which amounted to the one million dollars. The Court did not order costs against the GPSCCU which was also a respondent in the matter since it did not want to place a burden on the members of the Credit Union. Senior Counsel, Roysdale Forde told the newspaper that the respondents will have to pay the one million in cost out of pocket. The court has ordered that a notice for the Special Meeting requested by the Credit Union members be announced within 10 days of the its ruling. With that time already expired, stakeholders say they await the announcement from the COM. In a telephone interview on Sunday, Vansluytman-Corbin said that a Press Statement would be issued soon when asked about the COM’s move to uphold the court’s ruling. Given that the 10 days are up, the question was also asked whether there would be any move to appeal the High Court ruling. She said “whatever ruling the Court has issued, we will abide with.” When it came to a date for the Special Meeting’s notice, she did not wish to comment.
