By NALINEE SEELAL Thursday, September 9 2010

President of the Hindu Credit Union Members Group Deosaran Bisnath yesterday heaped praise on Government for its decision to consider the plight of depositors and shareholders, and for giving hope again to more than 100,000 persons.

Yesterday during the Budget presentation, Finance Minister Winston Dookeran revealed depositors and shareholders of Hindu Credit Union (HCU) will be entitled to $75,000 in accordance with the rules of the Deposit Insurance Corporation.

Deosaran said many depositors were old, sick and feeble and lived without basic amenities.

“The Government has shown that it is an inclusive government and cares for all its citizens. We are very happy that the Government has acceded to our request, and we look forward to the members receiving their monies.”

“We hope that the new credit union legislation will be implemented as soon as possible, so that other credit unions will not experience a similar fate,” Deosaran noted.

During his presentation, the Finance Minister also revealed that, “Whilst the former government failed and, or, neglected to address this issue and protect the small depositors and shareholders, in this Government’s thrust to serve the people, we must address the inequity meted out by the former administration to the vulnerable shareholders and depositors.”

He said the small depositor cannot be held liable for the failure of the past administration to do its duty.

Depositors above $75,000 will be paid an equal annual amount at zero interest rates over 20 years. Shareholders receiving these payouts will be required to sign over their rights to HCU assets to Government.

The Government will recover the public funds injected from the proceeds from the sale of these assets, Dookeran revealed.

This intervention will cost taxpayers an estimated $300 million, and will benefit more than 160,000 persons.

“Those responsible for this crisis must also be held accountable,” was a strong warning issued by the Finance Minister.