The flagrant encroachments on the sanctity of the shareholders’ funds, estimated at hundreds of thousands of dinars, in addition to a series of administrative violations and manipulations by some members of the boards of directors, which are still unfolding within the cooperative societies, which have reached a dangerous level requires urgent intervention from the concerned government agencies and MPs.
A local Arabic daily has learned 13 senior officials face tougher legal penalties for committing abuses. 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 accounting entries and records and other audit methods, in addition to following up on the purchasing policy, inventory turnover rate, and the mechanism for subtracting the invested branches of the association, then It recommended the dismissal of members of the association’s board of directors and their referral to the Public Prosecution, as well as the referral of 13 officials from some major markets’ trusts to the prosecution.
According to the report, the annual inventory of the Society’s central markets for the fiscal year ending on December 31, 2021 showed a huge financial deficit in the era estimated at 343,000 dinars, while the total amounts of spoiled goods amounted to 33,773 dinars.
This is in addition 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.
The report revealed that the audits of the companies supplying vegetables showed the existence of a monopoly and that in 2021 the association made a reduction in prices on some commodities in the central markets through companies worth 233,825 dinars to support the central market through price differences.
The report indicated that the association 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 9900 dinars in exchange for distributing masks, sterilizers and medical gloves by an individual decision, and did not The amount is paid to date, and Article 29 of Ministerial Resolution 166/2013 regarding the basic model of associations.