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UNDER FIRE: Rev Carmel Jones

THE NATIONAL Church Leaders Forum (NCLF), which represents Britain’s black church leaders, has come out in support of Rev Carmel Jones, founder of the Pentecostal Credit Union (PCU). He was publicly censured by the Financial Services Authority (FSA) for issuing loans worth £1.2m under members’ names, but then channelling the money to a church organisation.

Unfortunately, the relationship between the PCU and the unnamed church broke down at the end of 2009 and the loan repayments stopped. The estimated amount outstanding is in excess of £670,000. 

The FSA findings have resulted in major changes at the PCU. Rev Jones has stepped down from his role as head of the organisation, and has been banned from overseeing this practice.
systems

The PCU has also replaced its entire Board of Directors, has a new chair and following an external review of its systems, will be adopting a new way of working, broaden its range of services and widen its membership.

The new chair Leslie Lanihan stated: “The previous directors made a number of mistakes in relation to the granting of loans and the credit union has suffered financially as a result. We apologise unreservedly to our members for these actions and thank them for exercising goodwill towards the PCU.”

What was not highlighted in the public censure, was the fact that the PCU had been lending to churches before the FSA was established in 2002, and that Rev Jones founded the PCU in 1979 because the black community experienced great difficulty in getting loans from high street banks.

Over the years, it has loaned money to numerous black-led churches, enabling them to purchase their own building. Churches that have benefited from PCU’s services include Ruach Ministries and the New Testament Assembly.

SUPPORT: Ruach Ministries’ Bishop John Francis says Rev Jones was a good man

After joining the FSA, the PCU was warned to stop lending to corporate bodies. However, in his desire to assist black churches, Rev Jones suggested to the FSA ways that would allow the PCU to continue to do so. When these ideas were rejected, the PCU continued to make such loans, which was in breach of guidelines.

But the NCLF commended Rev Jones for providing valued financial service to the black community.

Bishop John Francis of Ruach Ministries said that while he understood the FSA’s rationale in censuring Rev Jones, the use of phrases like ‘disgraceful behaviour’ to describe his mistake gave the wrong impression, as the minister did not profit from his actions.

He said: “Rev Jones and the Pentecostal Credit Union have been an asset to our church because when our bank said ‘no’ it was the credit union that provided us with a loan to purchase our building. The banks were simply not lending to black churches. I am sorry that the creative ways by which Rev Jones was able to assist us and others has landed him in trouble. Rev Jones is a good man.”

Rev Delroy Powell of the New Testament Assembly added: “I know first-hand of the three decades of relentless efforts and personal sacrifice that Rev Jones has given to servicing the needs of our people, when no other help was there.

Powell continued: “I am pleased that now the FSA rules have been changed the PCU is no longer restricted and forced to use ‘creative’ ways to assist our community. Sadly this legacy has come at a personal cost to Rev Jones who many of us will hail as the champion behind one of the UK’s most successful financial co-operatives.”