Minister of Social Affairs Dissolves Board of Directors of Al-Zahraa Cooperative Society Due to Financial and Administrative Violations - Sarmad

Dr. Amthal Hadi Al-Huwail, Minister of Social Affairs, Family, and Childhood, issued a ministerial decision dissolving the board of directors of Al-Zahraa Cooperative Society, following the completion of audit and inspection procedures that revealed serious financial and administrative violations necessitating the adoption of necessary legal measures in accordance with the law.

The Minister emphasized that the decision aligns with the Ministry’s steadfast approach to protecting shareholders’ funds, reinforcing principles of integrity, transparency, and governance, and firmly addressing any transgressions that undermine cooperative work or violate the systems and regulations governing it. She stressed that the Ministry will not tolerate any impunity and will hold accountable anyone proven to be involved in violations.

She clarified that the decision also referred certain incidents and suspicions to the Public Prosecution for appropriate action, to complete investigations and hold accountable all those found responsible under the law.

Furthermore, the Minister stated that, in order to ensure the continued provision of services to shareholders and safeguard their interests, the Ministry has appointed an interim manager to oversee the society’s affairs and operations during the transitional period, pending the completion of the legal and regulatory procedures mandated by law.

Dr. Al-Huwail affirmed that the Ministry of Social Affairs remains committed to implementing its reform plan to strengthen oversight of cooperative societies, reinforce accountability and governance, and protect public funds and shareholders’ assets, thereby enhancing confidence in the cooperative sector and ensuring that all societies comply with the laws and regulations governing their operations.