Ministry of Social Affairs and Transparency Authority monitor investigations into 20 cooperative societies amid allegations
Al-Jarida has learned that the Ministry of Social Affairs, represented by its Financial and Administrative Affairs and Cooperation Affairs sector, in cooperation with the Public Authority for Combating Corruption (Nazaha), is continuing to monitor the progress of investigations into 20 “benchar” (tire repair and oil change) branches affiliated with cooperative societies. The aim is to verify the correctness and integrity of the procedures preceding the awarding of these branches to investors.
According to sources from the Ministry, the file was previously referred to the Legal Affairs Department to identify any violations committed in this regard, amid initial indicators suggesting that irregularities marred the awarding processes, resulting in the loss of substantial funds that could have strengthened the cooperatives’ financial positions and enhanced their standing.
Sources confirmed that the Cooperative Development and Membership Administration at the Ministry has begun re-examining all investment contracts related to the awarding of electricity branch, tire repair, and oil change (benchar) outlets. This review aims to verify the correctness and integrity of the awarding procedures, examine all documents, papers, and files related to the tenders, and address complaints and appeals filed regarding these procedures. It was noted that a specialized committee is conducting field visits to benchar branches to monitor violations, document them, and take necessary action.
The sources highlighted that the most prominent violations discovered in the benchar file include concluding contracts with investors directly, without following the proper legal tendering framework. This framework requires offering the benchar branch as an open auction to all interested parties, with the award going to the highest bidder, thereby generating significant revenue for the cooperative society.
Furthermore, the sources pointed out that some investors exceeded the allocated space for benchar branches, in clear violation of the Ministry’s and relevant government authorities’ regulations and requirements. Additionally, some investors to whom benchar branches were awarded failed to pay the full agreed-upon subsidy amount, without serious demands from the boards of directors to collect the remaining balance. This was compounded by rental values being significantly lower than the actual market rates.
Azdari Al-Mutairik, Director of the General Administration of Cooperation Affairs at the Ministry, issued a directive to all boards of directors of cooperative societies, stressing the necessity of complying with decisions by the Ministry of Commerce and Industry and relevant authorities regarding the maximum limit for cash transactions and sales in central markets and cooperative branches, capped at 200 Kuwaiti dinars only.
The Ministry urged cooperative society boards to exercise caution regarding non-compliant cash transactions to avoid legal accountability, emphasizing that it would not tolerate any violations that affect public funds or compromise the integrity of cooperative operations.
