CO-OPERATIVE alert for the WAKIL RAKYAAT and the citizenary
By Thuraisingham Shun
The Malaysian Co-operative fraternity consists of 7,000 co-operatives with a membership of above 7 million, snowballing to 16 million with family members incorporated. It has amassed an asset backing of RM79 billion, with an accumulated Share Capital and Reserves above RM24 billion. It is the third largest economic sector of our nation.
It was stated by the authorities that 80 percent of the co-operatives were inactive – they were either dormant, defunct or have been deregistered or have not held their Annual General Meetings. Much shortcomings were highlighted, vis a vis an article captioned
Something is rotten in the Malaysian Cooperative Movement
The Cooperative Movement consists of 7000 Cooperatives with a membership of seven million, snowballing to 16 million with family members included. Since inception of the Cooperative Movement, the Cooperative Movement has amassed Fixed Assets amounting to more than RM79million.
(a) Our status as the third largest economic sector has been dragged down as the fourth engine of growth
(b) 80 percent of the Cooperatives are
– inactive
– defunct
– dormant
– have not held their AGM
– awaiting Tribunal decisions and other problems.
(c) Attempts to selectively force Cooperatives to transfer their Statutory Reserve Fund is being resisted with legal action and with proposals to refer grievances to the United Nations and the International Labour Organisation.
(d) Whilst legal action are pending, the Malaysian Cooperative Commission has blatantly instructed the cooperatives to amend their by-laws and they have come up with their own guidelines, a blatant contempt of court.
(e) Conglomerates like FELDA and MCIS Zurich and other organizations will collapse if the Cooperatives are compelled to transfer their Statutory Reserve Fund and forced contributions to their funds by the Malaysian Cooperative Commission has resulted in insecurity within the movement.
(f) The Cooperative arbitrative machinery is too slow. Sometimes it takes 5 to 8 years to complete litigation process.
(g) Contributions to the Education Trust Fund and Cooperative Development Trust Fund have been misadministered and mismanaged.
(h) Millions spent to set up apex cooperative organizations like Koperasi National Sekolah, Koperasi Pembangunan Negara, Koperasi Perumahan Negara, Koperasi Pembangunan Industri Daerah, and other apex cooperatives organizations are in limbo. The recently launched Koperasi Bela Rakyat (KOBERA) nicknamed COBRA is a duplicacy of the defunct Koperasi Pembangunan Industri Daerah.
(i) School Cooperatives are deemed illegal. ANGKASA’s AGM monopolized by school cooperatives. School students voting.
(j) ANGKASA – Deduction Bureau
– abused
– mismanaged
– duplicating training and auditing
(k) Liabilities of Government, as per Audit Negara Report and Cooperative Commission Report, ambiguous.
(l) Funds from de-registered societies being mismanaged.
(m) Rubber Smallholders Cooperatives not under the purview of the Cooperative Commission.
(n) Bank Rakyat and its subsidiaries are being investigated. Complaints have been sent to the PM’s Department, Ministry of Finance, Securities Commission, moving at snails pace. Being dissipated from subsidiaries at low prices. Legal action is pending. NEAC Action Plan has been ignored.
(o) Cooperative Commission is being investigated by MACC and the Police. Process is moving at snails pace.
(p) ANGKASA – being investigated by MACC. No action on its mismanagement. MACC action is too slow.
(q) The status of the Cooperative Central Bank, Federation of Housing Cooperatives and 15 other deposit-taking Cooperatives are in limbo. These Cooperatives seem to be idle with no action being followed on nor are the shareholders being informed of the status. Action should be initiated to liquidate these cooperatives.
(r) The Prime Minister’s vision of 1Malaysia has been blatantly contravened by the Malaysian Cooperative Commission with its 1Communinity 1Cooperative.
(s) It is a mockery that ANGKASA, the apex cooperative organisation is embarking to form a Cooperative Bank, when its venture into the Amanah Saham ANGKASA has failed with losses amounting to millions.
(t) The Cooperate Commission has misled Parliament and acquired powers to amend Acts passed by Parliament.
(u) The Cooperative Commission has been accorded too much powers – as registrars as regulators, as enforcers, as managers, as development authorities and duplicating the existing training and audit bureaus.
Reports to the Authorities
Various shortcomings and solutions thereon have been put forth to the two former Co-operative Ministers and the current Minister, the Malaysian Anti-Corruption Commission, the Police, the Secretary General of the Ministry of Consumer, Domestic Trade and Co-operatives, the Malaysian Co-operative Societies Commission, the Government Complaints Bureau, PEMUDAH, the Chief Secretary to the Government, and finally the shortcomings have been brought forth to our Prime Minister Datuk Seri Najib Tun Razak, and nothing seems to have been done or is moving in snails pace.
The misstated 2008 year ending Annual Report of the Malaysian Co-operatives Societies Commission reads as follows
The Malaysian Cooperative Societies Commission Annual Report 2008 misstated
The Malaysian Cooperative Societies Commission Annual Report 2008 is inundated with alarming shortcomings:
* the annual accounts have been prepared without vesting orders
* the paid up capital of RM300 million has been omitted
* liabilities to the government in billions omitted
Bank Rakyaat – RM150 billion
MOCCIS – RM78 million
7 cooperatives – RM130 million
Other amounts reflected in Audit Negara report not reflected
* Millions expended to set up a number of apex organisations have been omitted
* expenditure to purchase computers too high
* Income from investment of fund accounts has been credited to the income and
expenditure accounts
* the accounting system is being balanced by the fund accounts
* Details of pending legal action against the Commission has been omitted
* comparative figures for the previous accounting period is not indicated
* details of fund accounts expended not detailed
* the fixed assets listing has no clarity
* Accounts has been qualified by a director who was not a director during the
accounting period
* according to reports in the media, the Commission had an asset backing of
RM49 billion which is not reflected in the Accounts
* disposal of assets illegal
* trust funds being utilised as income is being depleted
* trust funds belong to the contributors, as such they must be listed
* millions expended to ANGKASA from the trust funds not audited
* mismanagement of funds in ANGKASA reflected in a report not acted upon
* cooperatives are reflected in racial quantification contravening the National Cooperative Policy
* report of management consultants on the National Cooperative Policy not indicated
* ambiguous government gazette on the apex status of ANGKASA is prevailing
* Central Liquidity Fund details gazetted when matter is still pending in court
* illegality of school cooperatives not addressed
* School cooperatives allowed to enter into contracts, contravening the age of majority and
the Contracts Act
* profits of school cooperatives being used by headmasters
* position of Cooperative Central Bank fiasco and the deposit taking cooperatives not
explained
* funds from deregistered societies being used by the Commission
* Commission’s circular to cooperatives to write-off Cooperative Central Bank’s shares to
RM1 is illegal
* Lembaga Pertubuhan Peladang’s asseta not indicated in reports
* Same for Fisheries Cooperatives
* Rubber Smallholders Cooperatives not under the purview of the Commission – the
Cooperative Commission was set up to consolidate all cooperatives
This account, I understand had been presented to Parliament and adopted. It is understood that the 2009 annual accounts is also being bulldozed through Parliament with all these mistakes and misrepresentations.
This was brought to the attention of the Government’s Public Complaints Bureau which responded as follows:
BIRO PENGADUAN AWAM
JABATAN PERDANA MENTERI
ARAS 6, BLOK B1, KOMPLEKS JPM
PUSAT PENTADBIRAN KERAJAAN PERSEKUTUAN,
62502 PUTRAJAYA
No. Tel: 03-8872 5777
No. Fax: 03-8888 7778 / 8888 3748
Web: www.pcb.gov.my
Surat Tanpa Setem:
Biro Pengaduan Awam, Jabatan Perdana Menteri,
Peti Surat 9000, KUALA LUMPUR
Ruj. Tuan:
Ruj. Kami: BPA/013/2010.10/SKM/68227
Tarikh: 04/11/2010
Encik Thuraisingham Shun
Kuala Lumpur
WILAYAH PERSEKUTUAN
Tuan,
KES 68227: SHORTCOMINGS IN THE COOPERATIVE MOVEMENT
Saya dengan hormatnya diarah merujuk kepada aduan tuan/puan.
2. Sukacita dimaklumkan bahawa Biro Pengaduan Awam (BPA) telah menerima laporan maklum balas/ siasatan daripada Suruhanjaya Koperasi Malaysia (SKM) yang menyatakan bahawa pihak SKM telah memberi penjelasan kepada isu-isu yang tuan bangkitkan melalui pertemuan yang tuan minta sendiri dan juga dalam forum yang di anjurkan oleh gerakan koperasi . Pihak SKM juga telah pun memberikan maklumbalas serta mejawab isu-isu yang dibangkitkan melalui akhbar dan majalah seperti Malaysiakini Blog , The Sun dan Malaysian Business. Pihak tuan juga telah pun membawa perkara tersebut ke mahkamah dan telah menfailkan dua kes terhadap SKM melalui tiga Koperasi iaitu Koperasi Keretapi Malaysia Berhad , Koperasi Midlands Berhad dan Kesatuan Koperasi Berhad. Pihak SKM telah pun menang dalam satu kes yang di failkan dan satu kes lagi masih dalam pertimbangan mahkamah dan belum di putuskan. Di samping itu , pihak Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) juga telah pun menjalankan siasatan terhadap SKM dan hasil siasatan SPRM mendapati bahawa tiada berlakunya sebarang unsur rasuah dan salah guna kuasa dalam pengurusan kewangan yang diamanahkan kepada SKM. Akaun SKM yang berakhir pada 31 Disember 2008 dan 31 Disember 2009 juga telah pun diaudit oleh Jabatan Audit Negara dan pihak Ketua Audit Negara berpuas hati dengan laporan kewangan yang dikemukakan oleh SKM . Buku Laporan Tahuanan SKM dan akaun yang telah diaudit 31 Disember 2008 telah pun di bentangkan diPersidangan Parlimen pada bulan Disember 2009 manakala Buku Laporan Tahunan SKM 2009 pula akan dibentangkan dalam sesi Parlimen hujung tahun 2010. Disamping itu , pihak tuan juga telah pun mengadakan perjumpaan dengan Y. Bhg. Datuk Ketua Setiausaha KPDNKK pada 3 Ogos 2010 mengenai perkara yang tersebut diatas dan pihak SKM juga telah pun memberi penjelasan ke atas segala isu yang dibangkitkan dalam Mesyuarat Pengurusan dan Pembangunan Koperasi di KPDNKK pada 11 Ogos 2010.
3. Sehubungan itu, kes ini dianggap tutup sekiranya tiada maklum balas tambahan diterima daripada pihak tuan/puan dalam tempoh 7 hari bekerja. BPA mengucapkan terima kasih kerana menggunakan perkhidmatan kami. Bersama-sama ini dilampirkan Borang Maklum Balas untuk dilengkapkan dan dikembalikan kepada BPA. Untuk makluman tuan/puan, tiada caj setem dikenakan bagi penghantaran borang tersebut melalui pos.
4. Kerjasama tuan/puan amatlah dihargai.
Sekian, terima kasih.
“BERKHIDMAT UNTUK NEGARA”
Saya yang menurut perintah,
Signed
b.p. Ketua Pengarah
Biro Pengaduan Awam
Jabatan Perdana Menteri
It is indicated that the Honourable Parliament through the elected Parliamentarians, the Wakil Rakyat, seem to be ignorant of the alarming shortcomings, and have endorsed the shortcomings and misstatements.
Let this serve as a wake-up call to one and all, the Rakyat is not asleep; it is well aware and kicking. It is time to wake-up from the slumber of arm chair management and the lackadaisical attitude to resuscitate the movement. Private sector proposals have been ignored. This clearly indicates that the Prime Minister’s delivery system is at stake and the Prime Minister needs to kick-start the enforcement system.
Looks like everyone seems to be in cahoots, where do we take our grievances to.
Now that Parliament is set to discuss upon the Ministry of Consumer Trade and Co-operate matters on or about 25 November 2009(?), I hope for once the elected Wakil Rakyat will rise above the occasion to remedy the faults in the co-operative sector.
Likewise, this is my clarion call to the Prime Minister, who is no stranger to the Co-operative fraternity, to convene an emergency session of Parliament and to institute remedial action to resuscitate the Co-operative sector to its dignity and decorum as the people’s organization of the nation.
By Thuraisingham Shun
Cooperative Management Consultant and Advisor and Consultant
The International Co-operative Housing Foundation
Co-operative Union of Malaysia and
Midlands Co-operative Union of Malaysia
Tel. No: 016-2438457
Thuraisingham Shun was the first Malaysian to be awarded the “Bonow Fellowship by the International Co-operative Alliance, Geneva. He was the only Malaysian amongst nine nominees worldwide who vied for the “Rochdale pioneer awards” at the General Assembly of the International Co-operative Alliance in Catargena.
