O Government, Transform the Cooperative Societies into a Mega Company

Periodically, reports emerge regarding corruption in cooperative societies, leading the Ministry of Social Affairs to dissolve their boards of directors and refer certain members to the Public Prosecution on suspicion of embezzlement and other numerous violations.

Before addressing these issues, we must examine the history of these societies and how they evolved into institutions playing a significant role in Kuwaiti society. Their foundational concept is based on the principle of "owner-consumer," where members purchase goods and receive profits. This idea was adopted by the late Sheikh Jaber Al-Ahmad Al-Sabah, may God have mercy on him, during a visit to Beijing, China. Accompanying him, as I recall, was the late Minister Abdulrahman Al-Otaibi, may God have mercy on him, who worked to enact the relevant law in 1979.

Since then, these institutions have focused on serving the residents of their respective areas. Their statutory functions include providing social, cultural, and health services to participating residents in the area, such as supporting schools, funding summer activities, distributing annual profits to participating members, and contributing to the cleanliness and beautification of the area.

Initially, these institutions fulfilled their roles without any illegal practices, operating actively for years. However, when personal interests intervened, their nature changed. Instead of serving participants, they began serving the private interests of certain board members. Their elections transformed into mechanisms for creating political figures and influential individuals. Consequently, corruption spread within them, as is the case with most institutions in the country, following the weakening of oversight and the absence of ethical constraints, particularly after the liberation of Kuwait from the Iraqi invasion, which primarily caused a breakdown in national trust.

The efforts of Minister of Social Affairs Dr. Amthal Al-Huwaili to eradicate corruption in these institutions are widely acknowledged and can be considered a legal corrective measure. However, the question remains: Is accountability sufficient? To what extent can the dissolution of these societies’ boards and the appointment of replacements continue, and would the alternative be better?

Answering this question requires thinking outside the box to ensure that the role of these consumer institutions remains intact, while simultaneously serving local residents, eradicating corruption, and encouraging their development.

I believe there was an experience in one of the cooperative societies that was converted into a joint-stock company, which proved to be a successful model. Therefore, why not adopt a solution by transforming them into major joint-stock companies, potentially a single company for all of Kuwait, while preserving the services they provide and ensuring that citizens remain both owners and participants?

Historical experience has demonstrated that so-called "socialism," particularly of this type, has failed and even encouraged corruption. Consequently, board elections have become tempting for anyone seeking rapid, illicit enrichment.

According to data from their federation, the annual revenue of these societies exceeds 1.5 billion Kuwaiti dinars, with profits reaching approximately 25 percent. This lucrative environment tempts those with weak moral compasses to exploit legal loopholes and granted authorities to amass wealth through fraudulent means.

Furthermore, changing the law alone will not suffice. There is a well-known principle in the legal world: legislation, no matter how comprehensive, always contains loopholes that thieves, corrupt individuals, and criminals can exploit. Therefore, if these societies were converted into a single joint-stock company for all of Kuwait, or into several such companies, oversight would be stricter. They would continue to serve local residents while increasing profits, as this structural change would eliminate corruption and prevent corrupt individuals from unlawfully appropriating benefits.