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KUWAIT CITY, Jan 17: A report issued by the committee, which was recently formed by the Ministry of Social Affairs to review the work and accounts of the Farwaniya Cooperative Society affiliated to the Farwaniya Governorate, revealed a number of violations committed during the era of the previous board of directors, most notably the cooperative’s indebtedness to a local bank (supplier companies) estimated at KD 1.9 million, which prompted the aforementioned bank to take legal measures against the cooperative society and file a case to recover its money, after the failure of amicable methods to obtain its dues, reports Aljarida daily.
According to the report, the violations also included tampering with the automated system (cashier) in the vegetable and fruit branches, or what is known as the “electronic clearance”, to reduce or increase the quantities sold in a fictitious manner that does not reveal or reflect the truth of purchasing power within these branches. Another violation was the increase in the monthly salary of the cooperative society’s general manager and disbursing allowances and additional salary to him without right or legal basis, and without informing the Ministry of Social Affairs for prior approval.
The report also revealed wholesale manipulations within the vegetable branches, and non-compliance with ministerial and administrative decisions that regulate the issue, in addition to an exaggerated price increase, as well as an increase in the salaries of branch officials and additional disbursement to them without the approval of the Ministry of Social Affairs, which caused direct and deliberate damage to the financial position of the cooperative society. Regarding Ahmadi Cooperative Society, a former appointed director was referred to the Public Prosecutor on suspicion of market manipulation, abuse of power and the consequent waste of funds, as well as failure to follow the proper mechanism when purchasing vegetables and fruits, and imposing a large number of individual decisions without referring to the ministry or obtaining its prior approval.