1.5 million dinars in suspected embezzlement at Al-Farwaniya Cooperative
Al-Jarida learned that the Ministry of Social Affairs, through its Financial and Administrative Affairs and Cooperative Affairs Sector, has formed a second investigation committee for one of the cooperative societies operating within the Farwaniya Governorate. The committee was tasked with auditing the society’s financial accounts and administrative operations for the two most recent fiscal years (2023/2024 and 2022/2023), following findings by the first investigation committee, which had been established earlier to review the same cooperative’s activities and accounts for the previous fiscal year (2024/2025) and the current fiscal year (2025/2026). The initial committee uncovered suspicions of serious financial irregularities and major administrative violations, leading to a ministerial decision at the end of last May to dissolve the cooperative’s board of directors, refer several of its expatriate employees to the Public Prosecution, and issue travel bans against them to ensure the completion of investigations.
According to sources within the Ministry of Social Affairs, the total value of suspected financial irregularities identified during the first committee’s work amounted to approximately 350,000 dinars. This prompted the ministry to form a new committee to complete the auditing and review of the cooperative’s previous boards of directors, after sensing the existence of earlier irregularities and concluding that what was discovered during the first committee’s work was merely the “tip of the iceberg.”
The sources revealed that within just two months of the new (second) committee commencing its work, suspicions of financial irregularities and embezzlement were uncovered, estimated at approximately 1.5 million dinars. The sources noted that the committee is continuing its work and remains engaged in the review and auditing process. They added that the ministry’s decision to form a second committee is part of its ongoing legal measures to reform the cooperative sector and steer it back on the right path by holding accountable anyone who misappropriates shareholders’ funds, whether current or former board members or administrators.
The ministry stated that “the comprehensive punitive legal measures it has taken over the past two years, since Minister Dr. Umalth Al-Houla assumed the portfolio of Social Affairs—including decisions to dissolve boards, remove officials, and refer cases to the Public Prosecution and other investigative bodies—are not aimed at targeting or undermining the sector, but rather at protecting it, eradicating the entrenched corruption that has persisted for years, and preventing the severe financial losses suffered by cooperatives and the loss of millions of dinars in shareholders’ funds.”
The sources emphasized that the ministry will maintain its firm supervisory approach, noting that “accountability will not be limited to administrative measures alone, but will extend to anyone proven to be involved in or responsible for any irregularities or abuse of position to pursue illegitimate interests.” They clarified that field inspection and supervision teams are continuing their periodic and intensive work across various cooperatives, as part of a comprehensive reform plan aimed at enhancing governance and transparency, regulating cooperative operations, and reinforcing principles of accountability and zero tolerance for violations.
They added that “the ministry is resolutely moving forward to apply the law to all without exception, and any cases in which criminal or financial suspicions are substantiated will be handled with utmost firmness and referred to the competent authorities.”
