Some top co-op officials face probe as panel discovers funds violations

Reports submitted by four co-ops under scrutiny

KUWAIT CITY, April 15: The investigation committee in the Ministry of Social Affairs, in the realm of cooperative work, is poised to commence scrutiny of the recently submitted final reports. These reports, forwarded by committees tasked with reviewing the operations and financial accounts of four cooperative societies across various regions, are under examination, reports AlJarida daily.

Sources from within the ministry suggest that the committee may recommend the removal of one or more members from the boards of directors of these cooperatives and refer them to the Public Prosecution.

This recommendation stems from suspected administrative and serious financial violations detected by audit committees, which directly impacted the financial stability of the associations and compromised their fiscal standings. The committee is diligently reviewing the evidence to determine appropriate legal actions to safeguard the associations’ interests.

Membership of the committee includes individuals from the Fatwa and Legislation Department. They meticulously verify any observed financial and administrative transgressions supported by evidence and documentation. Subsequently, individuals implicated during the audit process are summoned to provide statements.

Financial and administrative observers of the associations are also consulted to ascertain the veracity of the violations. Recommendations are then submitted to the Minister of Social Affairs for necessary legal actions, which may include retaining the report, imposing penalties on the board of directors, removing members, or dissolving the board and referring it to prosecution for severe financial and administrative infractions.

Prominent violations identified by the committee include failure to adhere to sound procurement policies and mismanagement leading to inflated expenses and purchases coupled with declining sales and revenues, impacting liquidity.

The committee maintains impartiality and integrity in its operations, prioritizing the protection of shareholders’ funds and guiding the associations back to compliance. The ministry remains resolute in taking requisite legal measures to safeguard the integrity of the cooperative framework and uphold shareholder rights.

Previously, the Minister of Social Affairs, Family, and Childhood Affairs, Sheikh Firas Al-Malik, referred five former boards of directors of Mishref Cooperative Society (from 2019 to 2023) to the Public Prosecution based on the committee’s recommendations.

Additionally, a previous board of Al-Rawdha and Hawalli Cooperative Society, which assumed management in 2022, will be transferred to the General Department of Investigations at the Ministry of Interior.