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Ministry of Social Affairs to investigate 20 cooperatives over suspected violations

These measures are part of recent steps taken by the Ministry’s Financial, Administrative, and Cooperative Affairs Sector to discipline the boards of directors of several cooperatives found to have committed serious violations.

The Ministry of Social Affairs is preparing to form several investigation committees to review the work and financial records of more than 20 cooperative societies across Kuwait — nearly 30 percent of the country’s cooperatives. The move comes after reports of suspected financial and administrative violations.

According to informed sources, the committees will examine complaints submitted by shareholders and findings from ministry-appointed auditors that indicate possible irregularities. If violations are confirmed, the Ministry has pledged to take strict legal action to protect shareholders’ funds and maintain the integrity of the cooperative sector, reports Al-Jarida daily.

These measures come alongside recent steps taken by the Ministry’s Financial, Administrative, and Cooperative Affairs Sector to discipline the boards of directors of several cooperatives found to have committed serious violations.

The Ministry’s goal is to restore proper management and ensure that cooperatives fulfill their main purpose — providing quality goods to consumers at affordable, cooperative prices.

The sources noted that the scale of this initiative reflects the depth of issues that have accumulated in the cooperative system over the years. The Ministry believes decisive intervention is necessary to safeguard this multi-billion-dinar sector, which plays a crucial role in Kuwait’s food security.

Meanwhile, an investigation committee recently formed to audit one cooperative in the Capital Governorate has nearly completed its final report, which reportedly uncovers several violations. The Ministry is expected to issue a decision soon to dismiss the association’s board members and refer them to the Public Prosecution.

In the meantime, the Ministry continues to advance its digital transformation project aimed at linking all cooperatives to its automated monitoring system. Sources said the second phase — covering financial and administrative connections — is almost complete, with about 50 cooperatives already linked and the remaining 26 expected to join before the end of this month.

This progress comes ahead of schedule by about four months and sets the stage for the next phases: the introduction of an electronic inventory system and, ultimately, the integration of artificial intelligence (AI) into cooperative operations.

The electronic inventory system is expected to eliminate the disruption in product availability that consumers often experience during traditional manual stocktaking periods. With the new system, cooperatives will be able to update and monitor their inventory instantly, ensuring continuous product supply.

The Ministry has also instructed all cooperatives to fully link their entire stock of goods — not just their strategic reserves — to the central system. This will enhance transparency and efficiency in monitoring supply chains and sales.

In its final stage, the integration of AI will enable continuous performance evaluation of cooperative boards through accurate financial and administrative data. The system will identify weaknesses, highlight mismanagement or risky purchasing policies, and recommend corrective measures — ensuring that cooperatives operate with full accountability and remain financially sound.


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