HCU company declares $17M profit; Harry reopens subsidiaries while court battle continues

Harry Harnarine told a small group of Hindu Credit Union (HCU) shareholders Saturday he is aware of and understands their need for their money.

And he had some good news about one company owned the HCU group. Bankers’ Insurance, he said, declared a profit of $17 million during the last two to three weeks. He explained that the Central Bank had prevented the state-appointed liquidator from shutting down that company.

He said the HCU owns 92 per cent of that insurance company. Harinarine also said several of the companies of the HCU Financial Group would reopen this week.

These include HCU Auto Care, Institute of Higher Learning, and Sajeewan Medical, which would operate from the HCU head office in Chaguanas.

He insisted that the liquidator’s action is illegal, and that the judge did not have to rule. “They conceded when we went to court that what was done was wrong and they are now going to hand over all papers and documents in relation to the HCU Financial Group of Companies.”

The matter would be heard in October, Harnarine said.

The credit union boss explained that his fight with the liquidator is in the interest of everyone.

"I have to continue to operate in the interest of all, and not some...because if we allow the liquidation of the credit union’s assets and the companies’ assets, what will eventually happen is that people may get 20 and 35 cents on the dollar,” he explained.

He said there are three pending court matters relating to the HCU and that so far in one matter he has been able to get a stay of the liquidation of the assets of the HCU and the HCU Financial Group of Companies.

“They have also agreed at case management level that the HCU Financial Group of Companies is not in liquidation and therefore, the HCU Financial board can resume operations of all the companies under the HCU Financial Group,” he said, calling it a signficant achievement.

Harnarine told the shareholders the HCU matter is similar to the the CL Financial Group, in which case some member companies were in liquidation, some under closed while others, like Republic Bank, were not affected.