(Kuala Lumpur, 10th) The Ministry of Entrepreneur Development and Cooperatives has received a total of 59 complaints over the past five years involving cooperative board members in corruption, embezzlement, abuse of power, and misconduct, and all cases have been or are being addressed.
Through a written reply in Parliament to the question from Batu MP P. Prabakaran, Minister Ewon Benedick stated that any cases involving elements of corruption will be referred to the Malaysian Anti-Corruption Commission for further investigation.
He also said that decisions made by the Cooperative Arbitration Tribunal are final and legally binding. Once registered, they are regarded as decisions of a Subordinate Court, and both disputing parties must comply with the award.
However, Ewon Benedick added that according to the Cooperative Societies Act 1993, even if a cooperative fails to comply with the tribunal award or delays payments due to members, the law does not prevent such cooperatives from continuing to collect fees from new members or accept new investments.
“The Cooperative Commission still has the absolute authority, under Section 69 of the Cooperative Societies Act 1993, to issue written orders prohibiting any business, transaction or activity of the cooperative involved, including banning the acceptance of new member fees or investments, in order to protect members' interests and uphold the overall integrity of the cooperative sector.”
He continued that the ministry is currently drafting a new Cooperative Societies Bill to replace the 1993 Act, with a view to further strengthening cooperative supervision and corporate governance.