The Malaysian Cooperative Commission Annual Report for the year ending 2010 in Parliament
By Thuraisingham Shun
The Audit Negara Report has not addressed the missing billions in the Cooperative system.
The accounts of Audit Negara for the year ending 2010 of the Malaysian Cooperative Commission is to be passaged in the current Parliament session. Ardent attempts to obtain a copy of the same from the offices of Audit Negara and the Cooperative Commission bas been in vain. Thanks to the bureaucracy and red tape of the little Napoleons. I feel that for the third year in succession the misstated accounts are being bulldozed through Parliament and quietly without being debated.
For the year accounts for the years ending 2008 and 2009, it was identified that RM billions were missing from the system. Funds have been mismanaged and a host of shortcomings has been forwarded for the attention of Tan Sri Ambin, the Auditor-General himself, vis-a vis as follows.
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
* legality 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 assets not indicated in reports
* Same for Fisheries Cooperatives
* Rubber Smallholders Cooperatives not under the purview of the Commission – the
The Cooperative Commission was set up to consolidate all cooperatives.
It is fervently hoped that the Wakil Rakyat will be alert this time to question the missing links and other details stated.
Looks like that the Cooperative Commission was introduced to write-off the missing billions and other alarming shortcomings.
The various shortcomings and our Private Sector Initiatives (PSI) had been forwarded in eight memoranda to the Prime Minister. Another four memorandum have been delivered to the respective Minister(s); memorandums have been forwarded to the Chief Secretary to the Government, the respective Miniisty Secretary Generals, the Deputy Minister and a memorandum had been forwarded to the PEMANDU Directorate.
The Government has to initiate serious action to resuscitate the Cooperative Movement and to identify and account for the missing billions and other shortcomings without delay.
The plight of the 8500 cooperatives with its membership of 9 million, snowballing to 17 million with family members is in stake.
The Prime Minister is requested to initiate an emergency session of Parliament to restore the confidence of this people’s movement of the middle and lower income group, immediately. All draconian laws to scrounge the savings of cooperatives should be repealed.
The cooperative fraternity is set to deliver its voters for the next general election.
Written by:
Thuraisingham Shun
Cooperative & Management Consultant
Dato’ Mustapa Kamal Maulut
Chairman Portfolio Koperasi
The National Malay Chambers of Commerce
