ARM CHAIR CIVIL SERVANTS DEVISE CO-OPERATIVE LAWS

THE COOPERATIVE ACT (REVISED) 2007 MAKE THINGS LOOK SO EASY FOR ARM CHAIR GOVERNMENT SERVANTS WITH NO KNOWLEDGE OF MANAGING AND OPERATING CO-OPERATIVE ORGANISATIONS.

CCB COLLAPSED IN 1983. A NEW ACT CAME UP IN 1993. { THEN HOW IS THE COOP ACT 2007 INVOLVED WITH CCB.}

PULLING WOOL OVER THE EYES OF CO-OPERATORS.

The government recognized the cooperative movement as the third sector of the economy. As of 31 December the movement’s 5,861,000 members in 4,918 co-op societies generated RM7, 359bil in share capital with fixed assets of RM38bil.

Due to the instability caused by the mismanagement and corruption scandals of the 1980s, a new Cooperative Commission was passed by parliament.

It seeks to oversee and regulate cooperatives under the Cooperatives Act 1993, which is under amendment. Such regulation was due to the collapse of the Central Co-operative Bank (CCB) in the 1980s which caused others with dealings with it to be in trouble. Misappropriation of funds and mismanagement continue to plague the movement.

The new Commission is perceived to have flaws which need to be rectified opined a forum on cooperative societies. The details of the Cooperative Commission especially the 26 areas of prosecution for those found in breach of Cooperative laws was a point. A panel speaker pointed this as "too severe" for it could cause officers, many of whom held positions voluntarily, to shy away from top posts. { NOTE: This is what the powers that be want. So that cronies can take their places.}

The National Cooperative Organization of Malaysia (Angkasa) was criticized for failing in its role as an apex body to inform its members of changes.

A panel speaker said the ministry consulted Angkasa on the changes and inclusions but the members were not told.

New funds as the Co-operative Deposit Account (CDA) and the Central Liquidity Fund (CLF) were set up under the new law, requiring cooperative societies to put their finances in their own statutory reserve fund while "excess" monies are put into the CDA.

Referring to the Cooperative Development Trust Fund (CDTF) and the Cooperative Education Trust Fund (CETF), the Movement has not been told how their contributions to the two existing funds were used.

While monies in their Reserve fund, were used for investment, leaving it in the CDA would hinder the growth returns. These real concerns affect the members who are mainly from the lower income group and senior citizens.

Angkasa deputy president Prof Dr Mohd Ali Baharum said "there was nothing to worry about if co-op society leaders played by the book."

As for the CDTF requiring a 1% contribution from their net profits and the CETF, a 2% contribution, Angkasa general manager Nasir Khan Yahaya explained both were managed by committees appointed by the ministry. ( Who know nothing about physically operating and managing businesses.)

"We request finances to fund our educational programs from the CDTF through the committee," Nasir said. "We have nothing to do with the CETF that is used to run the Cooperative College of Malaysia. In all only 3% is going out of their coffers for the good of the movement as a whole."

Whereas contributions to the CDA and CLF, Nasir said, would belong to the society but be held in trust by the Ministry for better usage. For e.g. the CLF would be used to help co-operative societies with liquidity problems as a last resort. { If the have liquidity problems they should be closed. Not allowed to continue to survive on other people's monies.}

Besides which only large cooperative societies and credit cooperatives need to contribute to the CLF.

While co-ops needing funds for investment purposes could borrow from the CDA. "At the end of the day, the interest earned from lending activities sourced from these 2 funds would filter back to co-op societies by way of returns on savings," clarified Nasir. (Provided that the Borrowers have the decency to pay back the loans in regular instalments - which seldom ornever happens. Look at Koperasi KOBENA Berhad and Koperasi KOPEMA Berhad and many other Co-operatives of similar ilk. Their gut feeling: " Not our money - So why Pay? The Government will look after us as they have been doing the last 50 over years.)

In regard to members not being notified on the law, Prof Mohd Ali said it was not their place to do so prematurely, as it has not received the royal assent. ( NOTE: There is a limit to such nonsensical replies. Surely the members and the public should know before Laws are enacted - NOT AFTER - so that cronies benefit.)

When that is done Angkasa will undertake programs to orientate our members on how to deal with the chances. Allegation the members concerns and input were not solicited before Angkasa members went to the negotiating table to deliberate on the new act, prompted Prof Mohd Ali to clarify the apex body was aware of the issues faced by members which were raised regularly at annual general meetings. ( NOTE: Members of the Apex Councils are famous for collecting fabulous Allowances and gallavating on "Lawatan sambil belajar" and coming back with no input all to the Co-operative Movement.)

"For instance our members told us they wanted a fund set up as a backup in case certain co-operatives needed finances and that is how the CDA and the CLF came to be."{ NOTE: SO WHY RIP 50% of a Co-ops Funds to give to Co-ops that CANNOT LOOK AFTER THEMSELVES.)

It is fallacious to fear the Commission and the amendments to the Cooperative Act 1963 may stifle the industry. In conclusion it was said "it will be imperative for the guardians of the Cooperative Commission especially those who will be looking after the CDA and CLF to ensure all contributing societies are given the same treatment when the time comes for them to dip into these funds."

Transparency must be the keyword here. { This word does NOT exist in Malaysia.}

In the meantime cooperative societies were advised to obey the new rules before they cast their verdict. After all, there is provision in the law for the minister to implement it accordingly.