KUWAIT CITY, Jun 4: Dr. Amthal Al-Huwailah, Minister of Social Affairs, Family and Childhood Affairs, has announced a sweeping crackdown on mismanagement and corruption within Kuwait’s cooperative sector, underscoring the ministry’s commitment to financial integrity and the protection of public funds.  Dr. Al-Huwailah revealed that, since taking office, the ministry has dissolved the boards of 15 cooperative societies due to documented violations cited in official oversight reports. "This phase marks a critical step in correcting systemic flaws and ensuring that all violators are held fully accountable," she said. "There will be no exceptions when it comes to safeguarding public interest."

As part of the ministry’s anti-corruption initiative, 97 Kuwaiti nationals—including board members and staff of cooperative societies have been referred to the Public Prosecution, along with 118 expat employees. Dr. Al-Huwailah emphasized that these actions are rooted in a firm policy of zero tolerance toward financial and administrative misconduct.

Additionally, 19 financial and administrative auditors overseeing cooperatives that are currently facing dissolution are under investigation. Two have already been penalized, with inquiries ongoing into the others. The ministry is also undertaking a comprehensive review of its auditing processes and performance evaluation systems.

Minister Dr. Amthal Al-Huwailah, Minister of Social Affairs, Family and Childhood Affairs

Dr. Al-Huwailah stressed that enhancing transparency and improving regulatory oversight is now a national imperative. Recent amendments to Kuwait's financial disclosure laws, part of the "Integrity" framework, aim to bolster institutional accountability, not only in cooperatives but also in charitable and other public-facing sectors.

“Cooperative societies are vital to our national economy and social stability,” she said. “We are determined to ensure these institutions continue to provide high-quality goods and services at fair prices while maintaining rigorous governance standards.”

She made it clear that the ministry will not hesitate to refer anyone to legal authorities if found guilty of misusing public funds or committing administrative or financial violations.

The minister outlined a multi-pronged strategy to revamp the cooperative sector, which includes:

Dr. Al-Huwailah also highlighted the ministry's collaboration with cooperative societies to uphold legal compliance, urging full cooperation with inspectors and auditing teams. She emphasized the importance of budget discipline and urged strict adherence to the financial limits approved by the General Assembly and the Ministry.

The minister reiterated the importance of national talent in revitalizing the cooperative sector and called on cooperatives to support Kuwait’s workforce development initiatives. As part of the Kuwaitization policy, cooperatives have been instructed to promptly report vacancies in supervisory positions to the Ministry.

In support of local entrepreneurship, Dr. Al-Huwailah reaffirmed the ministry’s backing for small and medium-sized enterprises (SMEs), calling them a cornerstone of economic resilience. "Strengthening ties between cooperatives and SMEs will not only support national economic goals but also boost food and consumer security," she noted.

Moreover, the minister emphasized the importance of upholding hygiene and health regulations in cooperative operations, ensuring legal labor practices, and curbing marginal labor.

Dr. Al-Huwailah concluded by reaffirming the ministry’s unwavering resolve to clean up the cooperative sector. “We will continue to enforce strict regulations and legislative reforms to preserve the societal and economic value of these institutions,” she stated. “Our ultimate goal is to build a transparent, sustainable, and community-driven cooperative system.”