Power of Registrar to surcharge officers, etc

(1) Where in the course of– (a) an audit under section 55; (b) an inquiry under section 60; an inspection of books under section 60; or (c) a liquidation of a credit union, it appears that any sum of money is due to the credit union from any person or group of persons who or which have taken part in the organization or management of the credit union, the Registrar may, of his own motion or upon the application of the Board or Liquidator or any creditor or contributor of the credit union, as the case may be, examine the conduct of such person or group of persons and order the person or the group to, Credit Unions Act 71 (i) repay with such interest as the Registrar thinks fit such money or part of such money; (ii) restore such property or part of such property; or (iii) contribute such sum as the Registrar thinks fit to the assets of the credit union by way of compensation. (2) Before making an order under sub-section (1) against any person or group of persons, the Registrar shall give that person or group of persons an opportunity to be heard and to show cause why such order shall not be made. (3) Where an order under sub-section (1) for the payment of any sum by way of compensation, has not been complied with, such sum may be recovered by the credit union on application to the magistrate having jurisdiction in the registered place of business of the credit union, as though it were a fine imposed by sentence of a magistrate, and in default of payment the magistrate may impose a sentence of imprisonment on such person or group of persons, for a term not exceeding six months or until due payment is made, whichever is earlier. (4) Nothing contained in this section shall, be deemed or construed to preclude or otherwise affect the institution or maintenance of a prosecution against any person or group of persons referred to in sub-section (1), in respect of any offence under any other written law.