4 Farwaniya Cooperative members face dismissal over financial violations

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Ministry of Social Affairs announces dismissal of 4 board members of Farwaniya Governorate.

KUWAIT CITY, Dec 7: A local press has obtained information revealing that the investigative committee tasked with scrutinizing the operations and financial records of a cooperative society operating within Farwaniya Governorate has recommended the dismissal of four members from the association’s board of directors. The grounds for their dismissal are rooted in alleged financial and administrative violations. The committee further suggested referring these observed violations to the Public Prosecution, citing potential direct harm to the cooperative’s business solvency and financial standing.

Sources from the Ministry of Affairs disclosed that the Cooperative Work Review Committee has submitted its conclusive report to the investigation committee within the Ministry of Cooperative Work. The latter will now commence the examination and auditing process to verify the financial and administrative violations identified during the review. The report will be accompanied by evidence and documents substantiating each individual violation.

Comprising six members from the Fatwa and Legislation Department, the committee hears statements from any implicated board member mentioned during the audit or anyone associated with the observed violations. Additionally, it engages with financial and administrative observers of the association to ascertain the commission of the violations. The committee is set to present its recommendations to the Minister of Social Affairs, who will be responsible for taking necessary legal actions.

Prominent violations identified include a financial deficit, an increase in stagnant goods’ total amounts due to non-compliance with sound purchasing policies, and mismanagement leading to elevated expenses and purchases coupled with reduced sales and revenues. These issues have impacted the financial liquidity and weakened the association’s financial position. The ministry underscores its commitment to taking legal measures to safeguard the substantial cooperative structure, boasting an estimated annual sales total of one billion dinars. Any actions detrimental to the rights of shareholders and the standing of associations will not be tolerated.

In a related development, the Ministry’s Cooperative Control and Inspection Department organized a workshop in the northwest Sulaibikhat region. The workshop, titled “Tasks of Financial and Administrative Control Departments,” aimed to enhance the efficiency of administration employees, particularly financial and administrative controllers assigned to cooperative societies and unions. Ahmed Freij, Acting Assistant Undersecretary for Cooperation Sector Affairs and Director of the Cooperative Supervision and Inspection Department, emphasized that the workshop also sought to increase awareness, knowledge, and expertise in alignment with ministerial decisions and circulars. He stressed the need for intensified activities to enhance awareness and the cooperative culture among administration employees through periodic meetings, expressing gratitude to those responsible for organizing the workshop, as well as its participants.

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