KUWAIT CITY, May 22: The Cooperative Societies Sector in the Ministry of Social Affairs will soon issue a decision to suspend the signatures of 13 cooperative boards of directors for their continued violation of Ministerial Resolution No. 115T/2022 on the promotion of local agricultural products in cooperatives. Sources disclosed such a decision will paralyze all the work of the boards of directors of cooperatives, particularly since it will lead to the disruption of their financial affairs, which are considered the cornerstone of their dealings with companies supplying food and consumer goods. Sources said the decision is based on the recommendation of the committee tasked to evaluate and monitor the implementation of the aforementioned resolution, whose members conduct field visits to cooperatives to ensure that the boards are following the purchasing policy for local agricultural products.

Sources pointed out that, in coordination with the Public Authority for Manpower (PAM), the matter may reach the point of suspending the labor file of the concerned cooperative; in addition to imposing the penalty of dismissal or dissolution under Article 35 of Decree-Law No. 24/979 regarding cooperatives, amended by Law No. 118/2013. Sources added that the decision to suspend accreditation will be taken after the issuance of a warning to the violating cooperative and a remedial notice within two weeks. “In the event of noncompliance, the team shall issue a judicial seizure order for the identified violation. A cooperative’s requests will not be submitted to the relevant committees at the ministry if the violating procedure is not rescinded. The transactions with governmental and civil entities will then be suspended, and the approval signature will be suspended for a certain period,” sources explained.