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Monday , November 29 2021

Bid to hike shareholder profit; Scam seen at co-op

KUWAIT CITY, Oct 21: According to informed sources, the Ministry of Social Affairs has opened an investigation into a video clip in which an individual complains about a cooperative society where the accountant recorded the purchases of a customer on the number of another shareholder’s fund whose purchases exceeded KD 100,000, which the ministry considers as an “abnormal reading” and demands verification, reports Al-Rai daily.

According to the video clip, a customer who did not have a shareholder number wanted his purchases to be credited to a co-op shareholder’s account through the cashier. The latter asked him for his account number, and the customer said he doesn’t own one but he uses another one which turned out to belong to one of the Hussainiyas. It was found in the invoice that the value of the purchases on the account number exceeded KD 100,000 during the year, according to the owner of the circulating clip. He demanded preventing the phenomenon of recording purchases by some customers on the numbers of other shareholders’ accounts.

Regarding the ministry’s procedures, an official source revealed that the ministry has opened an investigation into the video. He said in such cases, the ministry is keen to investigate any “anomalous readings” in the purchases, find out their causes, and tackle them in a way that ensures the veracity of purchases and saves shareholders’ money. It is worth mentioning that the cooperative societies system is based on allocating a fund (account) for each shareholder to keep his purchase invoices. They are then collected at the end of the fiscal year in order to distribute profits. The suspected scam is aimed to increase the share of profits at the expense of the shares of other shareholders.

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