Eastern Credit Union is accusing its regulator of colluding with a disgruntled former board member to destroy the organisation.
And according to Eastern’s hierarchy, that disgruntled former director is being aided by this country’s Cabinet.
The accusation was made on Tuesday when Eastern called an urgent press conference at the board room of its head office located at the La Joya complex in St Joseph.
At the press conference were Eastern’s vice president Arvin Isaac, executive director Lavern Francis and deputy chief executive officer Kester Lashley.
Notably absent from the press conference was Eastern’s president Richard Noray.
“Over the last couple of months we have taken note of a number of stories that have appeared in a local daily that we believe have attempted to paint a negative picture of our cherished credit union,” Lashley stated.
“While the board of directors and the entire ECU team have been focused on improving our members’ lives we chose not to respond until our editorial this week,” he said.
Eastern published advertisements in two daily newspapers yesterday titled ‘Eastern sets the record straight.’
In it the current board distanced itself from a $4 million payment for inaccurate drawings for its Las Viviendas property in Valencia.
The current board wrote off the payment.
“In furtherance of safeguarding our members interest we now feel compelled to share information that has been brought to our attention,” Lashley stated.
That information Lashley said was an orchestrated plot to undermine the credit union.
“We have been informed that a former senior executive is in collusion with an employee of the Commissioner’s office and they have attempted to influence a number of executives to engage in activities that could be designed to hinder the board and the office of the CEO,” Lashley stated.
Lashley said he wanted to thank all of Eastern’s executives who are still “resisting such overtures and their commitment to our members.”
“We are further informed that this agent that we refer to in the commissioner’s office was hired by the relevant line minister. We have been informed that this agent, along with two senior members of the commissioner’s office, informed a number of ECU’s executives that he was hired by the Cabinet to undermine the board of ECU and that he would get the commissioner’s office to take action against ECU,” Lashley stated.
The Office of the Commissioner of Cooperative Development falls under the purview of the Minister of Youth Development and National Service Foster Cummings.
Apart from yesterday’s press conference, Lashley said, no other action has been taken to address the alleged situation.
In a statement late Tuesday, the Office of the Commissioner of Cooperatives said it conducts its affairs in a judicious manner not in the public domain, ensuring the safety, soundness, professionalism and fair-play for all.
It said the Office remains open to the Board and Management of the Eastern Credit Union and stands ready to assist all Credit Unions and registered Co-operatives, where necessary.
The Office of the Commissioner said it is also currently conducting an inquiry into the operations of the Eastern Credit Union Co-operative Society Limited.