Despite all the penalties, expulsions, referrals to the Public Prosecution, and public disclosure of violations, and despite the firm approach adopted by the Ministry of Social Affairs towards the boards of directors of various cooperative societies, particularly those managing large sums of money, some officials continue to misappropriate the funds of these societies. Methods of misappropriation have become more sophisticated, and the temptation to steal has increased.
Loopholes in the relevant laws have made it easier for some officials to commit violations. Frequent changes in personnel and oversight mechanisms within these entities have also reduced the effectiveness of supervision. What motivates those who manage cooperative and charitable societies to make greater efforts to uncover corruption is the perception that these funds are not public money, but rather the small contributions of shareholders who pay little attention to how their money is managed.
Years ago, I had written about the scandal involving several charitable societies that obtained licenses to operate cafés, restaurants, flower shops, and gift stores inside dozens of hospitals and medical centers without paying rent or covering the costs of cleaning, electricity, or water. It was later revealed that these locations, originally allocated to charitable societies, had been subleased for nominal amounts to certain members of parliament affiliated with their religious group. Their names were published in newspapers and recorded in the parliamentary proceedings.
These contracts were later canceled and replaced with more favorable arrangements. Just days ago, it became clear that leasing these locations could generate substantial revenue for the State Treasury. Caribou Coffee agreed to pay KD 906,000 annually to operate a café in the new Cancer Hospital. Al-Ghunaim Company, owner of the Coffee Bean brand, secured contracts to operate cafés at the Al-Rashed Allergy Center and the Farwaniya Dental Center for an annual rent of KD 406,000.
The Kuwait Flour Mills Company obtained the right to operate a café at Al-Razi Hospital for an annual fee of KD 258,000. Coffee Bean also won the contract to operate the shops in the Ministries Complex for KD 1,254,000 annually. It was therefore unsurprising that the Ministry of Social Affairs, which oversees cooperative societies, discovered that some cooperative societies had been leasing fast-food outlets and juice and beverage shops for as little as KD 1,500 per month. It was later revealed that the leaseholders had been subletting these premises to other investors for monthly amounts ranging from KD 8,000 to KD 10,000.
This prompted the ministry to require the cooperative societies to file lawsuits against the subtenants and seek their eviction, as the contracts prohibited subletting. Where were the ministry’s inspectors while these large-scale abuses, some of which continued for more than 14 years, taking place? Millions of dinars have been lost by the shareholders of these societies, and the ministry may never be able to recover those losses.
Most likely, no one will be held accountable for this negligence and failure to act. The current system for managing and overseeing cooperative societies that handle large sums of money creates conditions conducive to corruption among their managers, making a comprehensive overhaul and more effective restructuring essential.
By Ahmad alsarraf
email: [email protected]
