KUWAIT CITY, Jan 20: Head of the Union of Consumer Cooperative Societies Musab Al-Mullah affirmed that cooperative societies are the first line of defense for food security. In a press statement issued yesterday in response to reports circulating on social media about the dissolution of all cooperative societies and their management by the Kuwait Investment Authority and the Public Institution for Social Security, Al-Mulla denied the issuance of any directive to privatize cooperative societies or for them to be managed by Kuwait Investment Authority and the Public Institution for Social Security. Al-Mulla said, “We have not been informed of any approach in this regard from any party.”

He explained that cooperative societies are considered private funds for shareholders, through which they choose who will represent them in managing the cooperative societies. There are laws for regulating this matter, and it is not possible to give up the role they play under any justification. The role played by cooperative societies is primarily social in nature, as they do not seek profit in particular, but rather seek to provide many services that benefit shareholders and the people of the relevant area.

Al-Mulla said, “This social experiment is considered one of the most successful experiments at the country level, and at the Gulf, Arab and even regional levels. Many countries were interested in learning about this experience and sought to benefit from it”. He stressed the need to develop this experience instead of fighting it. Meanwhile, inspectors from the Commercial Control Sector at the Ministry of Commerce and Industry closed a company specializing in kitchen works against the backdrop of complaints from 40 citizens who accused it of collecting payments from them in exchange for carrying out contracted work, but it did not deliver what they have agreed upon, reports Al-Rai daily quoting sources. Sources revealed to the daily that the inspectors discovered the company collected around KD250,000 as initial payment for contracts whose total value exceeded KD500,000.

Sources affirmed the submission of a report on the complaints in preparation for referring company officials to the Public Prosecution. Sources said “the results of initial investigations conducted by the inspectors with the complainants indicated that they concluded contracts with the company to begin detailing kitchens for them, and that they settled the advance payments -- an average of approximately KD8,000 each or 50 percent of the total amount required. After paying the deposit and as the agreed delivery date had passed, the complainants discovered that they have been victims of breaches of contract dates, procrastination in delivery, and failure to return the advance payment.”

Sources added “the direct investigation with the company and the complainants showed that the company already approved the contract and received advance payments ranging from KD6,000 to KD12,000 as deposit for implementation. However, until the date of investigating the complaints, the company has not started the work scheduled for its contractors without a convincing reason that reflects its seriousness in implementation.”

By Fares Al-Abdan
Al-Seyassah/Arab Times Staff and Agencies