By Samuel Gillis
The Ministry of Labour is actively pursuing the conversion of several friendly societies into cooperatives, citing their engagement in profit-oriented activities as the primary reason for the transition.
According to Chief Co-operative Development Officer Janaknauth Panchu, these friendly societies can no longer operate under the Friendly Societies Act (Chapter 36:04) and must instead fall under the Cooperative Societies Act (Chapter 88:01).
Earlier this year, an agreement was signed with the Guyana Forestry Commission (GFC) to facilitate the conversion of friendly societies that were granted logging concessions.
This initiative is being supported financially through the EU Forest Law Enforcement, Governance, and Trade (FLEGT) initiative.
Explaining the process, Panchu outlined that ministry officers would be assigned to work closely with each group of friendly societies seeking conversion.
These groups must demonstrate the feasibility of operating as cooperatives, which involves conducting thorough assessments of their business models and operational plans.
Unlike the management of friendly societies, members of cooperatives will be subject to security checks and will need to obtain a certificate of good character from the police, aligning with the requirements of the Anti-Money Laundering and Combating the Financing of Terrorism Act.
The Ministry of Labour’s initiative aims to streamline the governance and operational frameworks of these entities, ensuring compliance with legal standards and promoting sustainable business practices within the cooperative sector.