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KUWAIT CITY, June 14: The theft of shareholders’ money, estimated to be in hundreds of thousands of dinars, in addition to a series of administrative violations and manipulations committed by some members of the boards of directors, which continue to unfold within the cooperative societies, have reached a dangerous level that requires urgent intervention from the concerned government agencies and representatives of the National Assembly, and impose tougher penalties for those involved in these abuses, reports Al-Jarida daily.
The most recent of these infringements is what was mentioned in the final report of the committee formed by the Ministry of Social Affairs to review the business and accounts of one of the cooperative societies in the Jahra governorate, which examined the entries and records and other audit methods, in addition to following up on the purchasing policy, inventory turnover rate and ended up recommended the dismissal of members of the society’s board of directors and referring them to the Public Prosecution as well 13 other officials to the prosecution.
According to the report, of which the newspaper obtained a copy, the annual inventory of the Central Society’s markets for the fiscal year ending on December 31, 2021 showed a huge financial deficit estimated at 343,000 dinars, while the total amounts of stagnant goods amounted to 33,773 dinars, due to the failure to follow sound purchasing policies in violation of Article 77 of Ministerial Resolution 46/2021 regarding the regulation of cooperative work, which resulted in this despite the fact that the Board of Directors was informed of this deficit by 5 official reports issued by the head of the accounting department, but it was approved in the presence of all its members and in an official record.
The report revealed that the audits of the companies supplying vegetables showed the existence of a monopoly in supplying it, and that in 2021 the association made a reduction in prices on some commodities in the central markets through companies, with a value of 233,825 dinars to support the central market through price differences. The report indicated the coop held a series of festivals in 2021, without having a prior license from the Ministry of Commerce, in violation of the text of Article 77 of the aforementioned decision, in addition to the fact that the Chairman of the Board of Directors in March 2020, spent 9,900 dinars for distributing masks, sterilizers and medical gloves by an individual decision.
The report pointed out that the association transferred 2.825 million without presenting it to the financial controller, distributed between 2020 in the months of May, July and September, and 2021 in January, in addition to cashing checks for the purpose of maintenance, without presenting them also to the controller, and disbursing huge financial rewards against the end of the year, distributing them to some employees who are not entitled to it, in violation of the labor law in the private sector, as well as disbursing rewards estimated at about 20 thousand dinars in April 2021, without presenting the matter to the board of directors, adding that “the association is not committed to the staff according to the ministry’s instructions, in violation of item 11 of the executive regulation issued in this regard.