Dozens of Co-op auditors under scrutiny by Social Affairs Ministry
Sources at the ministry stated that proven negligence or collusion harming a cooperative’s finances or shareholders’ funds will result in penalties, including salary deductions and possible disqualification as a cooperative observer.
• The Ministry of Social Affairs stressed that penalties apply to any negligent staff, not just co-op employees, as auditors play a vital role in shaping key decisions and must ensure accurate reporting or face legal and disciplinary action.
Acting on directives from Dr. Amthal Al-Huwailah, Minister of Social Affairs, Family and Childhood Affairs, the ministry’s Legal Affairs Sector—through the Investigations and Contracts Department—has launched investigations into dozens of financial and administrative auditors assigned to cooperative societies, according to Arabic daily Al Jarida.
Recent decisions have led to the dissolution of some boards, dismissal of members, and referrals to the Anti-Corruption Authority (Nazaha), following confirmed financial irregularities and major administrative violations uncovered by special review committees.
Legal and administrative penalties
According to sources from the Ministry of Social Affairs, if any negligence—intentional or unintentional—or collusion is proven to harm a cooperative society, affect its financial standing, or cause the loss of shareholders’ funds (which are held in trust by the ministry), legal and administrative penalties will be imposed. These may include salary deductions based on the severity of the violation and could lead to disqualification from serving as a cooperative observer.
The ministry emphasized that such penalties will not be limited to cooperative sector employees but will extend to any negligent staff member who fails to perform their duties effectively or address administrative shortcomings.
The sources added that auditors serve a critical role as a bridge between the ministry and cooperative boards of directors. Their reports influence major decisions—such as dissolving boards, dismissing members, or referring cases to the Public Prosecution. Therefore, complete accuracy in report writing is essential. Any negligence, leniency, or failure to report violations will result in accountability, legal action, and disciplinary measures.
The sources added that each observer must verify the occurrence of any violation and support their findings with conclusive evidence, including relevant papers and documents. They emphasized the importance of early intervention—before serious violations occur—through the gradual application of penalties as stipulated by the law and regulations, in a way that upholds the interests of cooperative work.
It was noted that the cooperative supervisor acts as the ministry’s “eyes” over all administrative and financial activities within the associations. Their adherence to legal responsibilities reflects the well-established legal and Sharia principle: “Preventing corruption takes precedence over attaining benefit.” Through their diligent efforts, potential sources of corruption can be blocked and violations prevented before they escalate.
To strengthen the performance of cooperative auditors and ensure the highest standards of integrity and transparency, the ministry has organized specialized training courses. These aim to enhance auditors’ capabilities in preparing sound financial and administrative reports based on solid legal principles, ensuring the validity of any observation or violation recorded against a cooperative.
The courses also included workshops on the legal handling of detected violations, aimed at raising the auditors’ competence, impartiality, and professionalism—qualities essential to their sensitive and impactful role.
