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Concerned Barbados Public Workers Cooperative Credit Union Members Speaking Out

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Submitted by BPWCCUL Concerned Members Coalition

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Paul Maxwell,Treasurer of BPWCCUL, a Director of CAPITA, a Director of BPW Financial Holdings and was recently named as CEO of CAPITA – accused of conflict of interest

Members of the Press

The Annual General Meeting of Barbados Public Workers Cooperative Credit Union will be held on June 18th 2011 and will be a watershed as a large number of fed up and concerned members will be there to let their voices be heard.

The major issues are:

  • Two cases of fraud which are being covered up by the Management, Board and Supervisory Committee. These fraud cases were not reported to the external auditors or to the regulator as required by section 215 of the Cooperatives Societies Act. Indeed the CEO and Management did not follow the procedures set out in their own anti-fraud policy — which should have seen the Internal Auditor immediately alerted and the necessary investigations conducted. Two staff members have lost their jobs so far and dozens of members whose cards were created by one particular individual are at risk. While these two staff members are no longer with the organisation, there is evidence that they did not act alone. The members are therefore concerned about any involvement by others including supervisory and management staff.

  • Excessive travel by Paul Maxwell, a member of the Board who is also Treasurer of BPWCCUL, a Director of CAPITA, a Director of BPW Financial Holdings and was recently named as CEO of CAPITA. These also represent major conflicts of interest. He is already booked to attend conferences AFTER he vacates his seat on the Board on June 18th in contravention of a Board Policy which was used to get rid of then member Mr. Caswell Franklyn. Mr. Maxwell was instrumental in bringing down Mr. Franklyn now is completely ignoring the rule he created to oust Mr. Franklyn at the time.

  • The recent naming of Mr. Maxwell as the successor to Ms. Clorinda Alleyne – current CEO. In a recent memo to the Board, she named Mr. Maxwell and another member of staff Natalie Holder as her choices to succeed her. Ms. Holder as General Counsel if she is interested would be fine but the naming of Mr. Maxwell is offensive to the members. The Credit Union management positions are not part of Mr. Maxwell’s fiefdom to be handed down from one friend to another. AT this stage we would recall the fact that Mr. Maxwell contrary to the organisation’s policy used the CEO’s and other BPWCCUL vehicles while he served as President with no regard for the organisation’s rules.
  • Excessive travel by a member of Staff – Tracia Pounder (search for photos of her travels on facebook) She (as a supervisor) has travelled more than any member of staff including the Chief Executive Officer during the last year.  Only one other person has travelled more and that is Mr. Maxwell.
  • The ineffectiveness of the Supervisory Committee. this committee is chaired by Cedric Murrell, the chairman of CTUSAB, VP of the NUPW, Chief Air Traffic Controller, Director of NISE, deputy Chairman of the St. Philip South Constituency Council, Regional Executive Director with the International Association of Air Traffic Controllers. He also plans to run for the Board – How can this represent good governance? How can he assure members that he will have the time needed to be an effective Director? There is a conflict between his role as a leading trade unionist and the potential role as employer/Director of Barbados’ largest Credit Union.
  • The fact that Mr. Maxwell encouraged a Kieva Cadogan to run and mis-led members into supporting her as a Director when he knew that she was a BANK INSPECTOR at the Central Bank. Under the Financial Institution’s Act, CAP 324A at Section 52, as the owner of CAPITA, BPWCCUL is subject to regulatory authority from the Central Bank. How can she therefore sit as a Director of BPWCCUL and effectively perform her role as a Bank Examiner. In past years the Central bank has actually carried out examinations of BPWCCUL in association with the substantive regulator. Ms. Cadogan should do the decent thing and resign as a Director. The Central Bank Governor should also be asked to explain this clear conflict.
  • The fact that one Director Ms. Marilyn Mapp works outside of Barbados in Grenada (as Finance Officer of the Caribbean Knowledge and Learning Network) and therefore cannot attend Board meetings with any regularity. Our information is that she has not declared this information to the Board and while she travels back for a few meetings (4 during the last year) she also travels on behalf of the credit union regularly notwithstanding her very poor attendance.
  • Why does the credit union have to pay for nearly the entire Board to attend a short 1 or 2 hour ceremony to formally launch a 7 or 8 million dollar business in St. Lucia (CAPITA Launch on Friday). Could the Credit Union not be adequately represented by one or two Board members and a couple Managers??
  • Well-documented relationships between prominent Board Members and members of Staff who are rewarded with oversees trips to conferences as a result of their compliance with Directors’ requests
  • The fact that the Credit Union President  Mr. Terrol Inniss went on a birthday bash to Hawaii unknown to most Board Members. It was the Credit Union Executive Society’s Symposium 2011: A CEO/Chairman Exchange.  It was held at the Grand Hyatt Kauai Resort & Spa from February 6th to 12th.
  • The Concerned members also wish to know whether a Group Strategic Plan has been devised to streamline the operations of the Group?? If not why not?
  • We also wish to know when was the last appraisal of the Chief Executive Officer carried out by the Board? Given the concerns previously expressed by the regulator was an appraisal done this year? If one was not done is it the Board’s intention to continue to pay the CEO their share of the profit-sharing plan in the absence of any documentation of their performance?
  • What is the status of the Credit Unions Investment in Cooperators General Insurance?? Was this investment approved by the Registrar in keeping with the requirements of the Act in terms of such investments? If not what sanction can be imposed on the members of the Board?? Was this a prudent investment given the credit union’s existing investments in Insurance Corporation of Barbados?

Sincerely,

BPWCCUL Concerned Members Coalition

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115 responses to “Concerned Barbados Public Workers Cooperative Credit Union Members Speaking Out”

  1. BajanV Avatar
    BajanV

    I have been following the comments and realize a number of important things have been overlooked while minor issues have been flogged to death.
    I have a couple of questions regarding the issue of Mr. Franklyn’s travel being cancelled. I am not saying that credit union funds given to Mr. Franklyn should not be repaid, however, if as is customary for persons traveling on business, the funds were indeed placed on a credit card, the finance charge associated with the removal of those funds should quite easily have been covered by the credit union and the matter could have been solved long ago. That MINOR issue required no more debate.

    But on to more important matters.
    1. Is it not customary for travel and accommodation cancelled so close to the date to be NON-REFUNDABLE?
    2. Was Mr. Franklyn the ONLY committee/board member whose travel was cancelled for that particular trip? By his own admission, Mr. Franklyn outlined the costs associated with his travel:
    “I had already been issued with a non refundable airline ticket costing $5,831.60; overnight accommodation in England (both ways) costing 295 pounds, also non refundable, had been paid; registration of US $1,228 was paid and not refundable or transferable after May 19th; and a non refundable charge of US $327.50 was also paid to the hotel in Hong Kong. In addition on June 3, 2008, I was paid $7,119.01 which represented the remainder of the hotel bill and per diem.”

    If that is the case and he was NOT the only person whose trip was cancelled, we as members need to know exactly how much of our money the credit union lost because of that decision. I personally would like someone to answer that.

  2. Johnny Postle Avatar
    Johnny Postle

    The one f…king goood thing that has help black people to obtain a measure of hope in land purchases, homes, cars and other necessities is now tarnish by corruption. I am starting to believe that we are masters at destroying a good thing and creators of demise and divide. Another were there is black expect it to be slack

  3. smooth chocolate Avatar
    smooth chocolate

    @ queen | June 2, 2011 at 6:42 AM |
    “caswell your up to your old tricks agin as usual I see. Ya cant coem to the Credit Union meetings anymore with these issues when convenient to you – like when you not in control – so you stirring up these folks to do your dirty work for you”

    what dirty work is caswell stirring up people to do idiot? it is obvious, u have an agenda. he was not the one who published the article… he was one who offered comments and facts… are u retarded or do u spend so much time with the foolish and blind, u have become just like them?

  4. BajanV Avatar
    BajanV

    Mr. Franklyn raised an interesting point once again that people seem to be ignoring for petty nonsense.
    He said “We have one volunteer whose only work for 5 years was “volunteering” at the credit union: he was able to travel the world. I only have figures for 2007 – 2008: his per diem and accommodation for that period was $60,112.59.”
    No one finds this disturbing? There are members of the credit union that don’t make that much money in a year.
    If that is true and it did in deed occur for five years, where is the spread sheet showing a similar analysis for each board member over a similar period? The information should be made available for a proper comparison and analysis to be done by the members. Then, if that individual’s travel expenses were well in excess of other board members, the management of the credit union should be asked to explain why one person is receiving perks above and beyond what is considered prudent for an organization such as a credit union.

  5. Just Only Asking Avatar
    Just Only Asking

    @david

    My dead staring to hurt me, every month i deposit 20% of my net income with the movement for the last 35 or 37 years so you would undersatnd my concern. What I can assure after this month I am not sending another cent there.

    I feel like i will sharpen my clooins and take to that agm just in case. when we were pushing the movement we could see all those pretty talkers, but now um got a lot a money that people could thief and misapprriate yah could see all them opportunist. This is a serioud matter and let mah tell you i serious as hell and i hope the members come out and ask question asfter question and bring along the friends and family to ask question too, casue i think i gone pay bonny to buse the, cause she know wah ta tell dah.

  6. Roger Avatar
    Roger

    This is sad. So sad. It is evident that there is wrong doing here. Some of the information presented is quite alarming. But this is not the forum. We are very upset when WICB airs their dirty laundry in the press, and yet, here we are. I have money in the Credit Union, I even worked there some time ago, and I am quite pleased/proud to be associated with this homegrown organisation.

    Why do we always have to look at what other people are doing, Williams OWNS his own company, if he wants to pay himself all the money, thats his business; the credit union is OWNED by ALL of us, thats why our deposits are called shares, so any spending of OUR money MUST be told to us before it is spent and then we must be told how the monies that were approved for spending are actually spent, we should accept nothing less.
    But this kind of venting will not help. At the appropriate time and place we can lash them with our ‘X’ but this is not that time nor place.

  7. David Avatar
    David

    @Roger

    It is interesting the word ‘we’ is used in situations like this but come the AGM a quorum is the hardest number to muster.

  8. Caswell Franklyn Avatar
    Caswell Franklyn

    Roger
    What you are talking about is the ideal situation. However we have a situation where corruption is endemic.
    The whole concept of a co-operative has been lost. The law requires that part of the surplus should be, “used to educate members, officers or employees or the general public in the principles and techniques of economic and democratic co-operation”. This is no longer done apart from the yearly Olive Trotman Lecture and a yearly contribution to the league’s education fund.
    The credit union has now become a cash cow for a selected few who milk every opportunity to get undeserved money. To achieve this, they rigged every election since 2000. Members became unwitting acomplices to changing the rules that have allowed ballot box stuffing. When members complain to the Registrar their concerns have been ignored. I had the unpleasant experience on February 20, 2008 where the President stood up before a special general meeting and said to me that I had complained to the Registrar but she had called him and told him and at least one other director, pointing out that I could not do anything with him.
    On another ocassion I reported a matter to the Police and the board was able to get their hands on a copy of my statement and they were bold enough to quote from it when the disciplined a member of the Supervisory Committee. That is truly remarkable when you consider that the board of directors have no power to discipline any member of the supervisory committee. The Supervisory committee has power to suspend members of the board :not the other way around, but members just sat there and allowed this nonsence to go on. Incidentally, the Police took no action against them or the person who stole my statement from District A police station.

    Members have lost control of Public Workers Credit Union. A select few play musical chairs with the seats on the three elected committees. To ensure their election over the years staff were given generous bonus payments one day before the AGM for a number of years. Also a week or so before the meeting a large selected group of members are treated to a feast, including wine, and encouraged how to vote on various issues. The members will have little chance to change the culture of corruption that pervades the credit union. Government would have to intervene, but there is little likelihood of that happening, since the Government owes the credit union board a favour.
    Government could not put any more money in CLICO so they used Public Workers Credit Union to channel National Insurance funds to purchase Clico Mortgage Finance. I heard the then Prime Minister say on television that he had approved the sale to the credit union. That was remarkable since the members were never called upon to approve a resolution to purchase that company with their credit/money. The Office of the Registrar is supposed to approve these investments and should ensure that such a resolution is in place before approval is granted. The board is assured that their bad behaviour would be sanctioned at the highest level , so my dear Roger you have little chance to make any meaningful change at Public Workers Credit Union.

    These guys are protected since they know that neither the Police, Registrar nor the Ministry will take steps to prevent or punish their illegal behaviour.

  9. Cat Eyes Avatar
    Cat Eyes

    Thee issues have been longstanding and have become worse with time. The main reason is because the messenger with much of the information has been Caswell. Ever since 2002 Caswell has been afforded scant respect within the BPWCCU Ltd and some quarters of this society. So while in some instances he may be correct, his one misstep has cost him the little credibility he had left.
    In 2008 the credit card mess came to the AGM and I had read the information in the papers like all other members there. I distinctly remember a female member asking board members, twice, if what she read in the papers was true. They said no. A QC was at the head table to assist them in replying to questions. Sadly nobody pursued the issue then. But as a result of the expose the Registrar requested limits be placed on these cards among other things. Nothing has been done to date. Can you imagine Paul Maxwell’s credit card bill was $24,000, approximately $2,000 per month, and in many of the months that the spending took place he did not travel. Why would a non-executive director be spending that kind of money locally? Because he can.
    The comparisons with a company like Sagicor are fallacious. The directors of PW do not work there! They serve. Check the literature re the philosophical groundings of a credit union.
    Subsequent to the credit card spending revealation, they fired the audit assistant, a competent woman with nearly two decades in the organisation. They also put a member of the Supervisory Committee out of the CUnion, accusing her of leaking the info to the press. It was untrue, but she never fought it.
    I suppose people are now getting uptight because of CLICO, but I always was disgusted with the apathy of members who had the power to intervene but did nothing once they got their measley dividends. Meanwhile Paul Maxwell and his clique continue to lick out their money. I will now list all the things that just should not have been allowed; issues that members KNEW about.

  10. Cat Eyes Avatar
    Cat Eyes

    1. How is it that the CEO of this credit union makes almost $20,000 per month, inclusive of allowances. More than the Prime Minister of this country? More than what some executives of private sector banks and insurance companies earn; more than some executives who have to perform and are appraised on performance. She also receives leave passage – the type that longstanding civil servants receive- holiday with passage paid for by the members. They have smartly sat down and crafted an exceptional salaries and benefits package for Alleyne who adds no value to the institution if you were to review her performance. Her salary is almost 6 thousand dollars more than her deputy the Legal Counsel. Those gaps in salary ranges are highly unusual. The CEO of the PW credit union has no financial qualifications, save for the credit union courses, and was a less than stellar attorney before joining the organisation as its Legal Counsel, yet through the machinations of Paul, and certainly not on ability or skill she is the head of this organisation.

    Will be posted in a separate blog

    David

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  14. David Avatar
    David

    Since 2011 BU had an eye. It has come to pass.


    Capita shake-up
    CEO exits, board resigns as company fined thousands
    by SHAWN CUMBERBATCH
    shawncumberbatch@nationnews.com
    A MAJOR SHAKE-UP has started at CAPITA Financial Services Inc. as it faces thousands of dollars in fines from regulators and parent company concerns about its performance.
    The MIDWEEK NATION has learnt that, following the recent installation of a new board of directors, the company owned by the country’s largest credit union, Barbados Public Workers’ Co-operative Credit Union Ltd (BPWCCUL), parted ways with its chief executive officer (CEO) Paul Maxwell last Friday.
    Efforts to reach Maxwell, who previously departed CAPITA Financial but returned to lead it, were unsuccessful. However, a representative of its new sixmember board, now chaired by Courtney Gibson, with Derrick Cummins as his deputy, said “communication” on the CEO’s exit was likely to come this week.
    Members of CAPITA Financial’s previous board of Carole Eleuther-Jn Marie (chairman), Terrol Inniss (deputy chairman), and directors Andrew Brathwaite, Trevor Colluci, Luther Jones and Sandra Osborne, all resigned.
    The company, which was renamed CAPITA Financial after BPWCCUL entity BPW Financial Holdings Inc. secured CLICO Mortgage & Finance Corporation on August 27, 2010, has been hit with thousands of dollars in fines by regulators over the failure to complete its latest financials on time.
    When contacted on the matter, the Central Bank of Barbados, which issued the licence for CAPITA Financial to operate, did not go into detail, only stating: “Please note that penalties represent one of the tools in the bank’s arsenal.”
    The fines were, however, confirmed by BPWCCUL members who attended the organisation’s annual general meeting (AGM) on December 3, and by an official briefed on the matter.
    “The financials were not completed so there was a $10 000 fine imposed and then $500 a day until they submitted them, and they were supposed to submit them on the 14th of December. It is expected to cost them about $17 000,” the official said.
    The fines imposed and CAPITA Financial’s overall performance was one of the contentious issues discussed at its parent company’s unfinished AGM.
    The company’s failure to produce audited financials was also flagged as an issue of major concern by BPWCCUL’s board of directors in its annual report for the financial year ended March 31, 2022.
    Not finalised
    “CAPITA Financial Services Inc.’s Group audit was not finalised and approved as at the time of this report. This is a matter that is being taken very seriously by this board which has and continues to express its disapproval and discontent about the matter to the subsidiary board charged with oversight of the CAPITA Financial Services Inc. Group,” the directors said.
    “We have mandated that the necessary work be done by all parties to ensure this unacceptable position is rectified within the very short term. In addition, we will also be conducting a review upon completion of the CAPITA audit, and will be taking the requisite and focused actions required to eliminate the root causes of this undesirable performance in order to avoid a repeat by any entity within the group.”
    CAPITA Financial operates here and in St Lucia. BPWCCUL’s board of directors said in their report that based on their subsidiary’s draft reports, at the end of the financial period ended March 31, 2022, “net income decreased year-on-year by 24.2 per cent to finish the period at $1.4 million versus the prior year’s $1.8 million”.
    Officials also said that while the group’s revenue increased by 21.7 per cent, “this was not significant enough to offset the 32.4 per cent growth in operating expenses that fully eroded that revenue growth”.
    Shortcomings
    Since this information was unaudited, the board of directors cautioned that there was “a possibility that the final audited financials will be different”.
    BPWCCUL’s hierarchy also said that there would be “key business development and operational support recruitments to fix noticeable shortcomings in the coming fiscal period” at CAPITAL Financial.
    The directors added: “These operational changes, coupled with implementation of the recommendations arising from the ongoing independent corporate governance review, will help in realising the objective of improving the CAPITA Group’s performance and overall contribution.”

    Source: Nation

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