all ministers of affairs have been involved in referring the board of directors of one or more cooperatives for prosecution or investigation.
initially, the issue was localized to associations in specific regions, but the epidemic has since spread both internally and externally, impacting cooperatives across the board.
amidst this wave of corruption and dismissals, one association stands as a beacon of integrity: the renowned internal association, long held as an exemplar and role model, has found its councils referred to the judiciary.
recently, the recurring pattern of embezzlement within cooperative associations, sometimes involving sums in the tens of millions, has become a mundane and predictable occurrence. there appears to be no end in sight to these financial and administrative transgressions, nor to the suspicions of misappropriating shareholders’ funds.
this phenomenon cannot be solely attributed to the financial mismanagement by those overseeing these associations or the pervasiveness of corruption within state institutions. rather, it is inherent in the philosophy of cooperative societies and the laws governing their establishment.
the cooperative structure inherently predisposes those in positions of authority to corruption, as it represents a significant financial entity in which the citizens, the local community members, and the true stakeholders have little more than a nominal financial stake.
the lack of effective oversight mechanisms, coupled with the reluctance of stakeholders to invest significant time and resources in monitoring the activities of the association, exacerbates the vulnerability to corruption within the cooperative system.
the annual sales of cooperative societies reaching one billion dinars serve as an enticing prospect for debtors, particularly those inclined towards complacency. the lack of immediate financial oversight within these institutions, stemming from the weak structural governance by their regional stakeholders, further compounds the susceptibility to malfeasance. it is noteworthy that the majority, if not all, of these cooperative societies’ boards of directors profess religious affiliations, at least superficially.
the mismanagement of receivables within cooperative societies’ boards also extends its ramifications to the boards of directors of charitable societies. despite their shared founding objectives, a disturbing trend emerges where financial irregularities, ranging from millions to billions, have persisted for over half a century, prompting serious scrutiny.
the prevalence of such violations raises questions about the reluctance of higher supervisory or executive bodies to intervene, especially considering that the majority of these influential associations are controlled by boards of directors closely aligned with politicized religious factions.
this immunity enjoyed by these individuals, coupled with the leniency towards their financial indiscretions, underscores a systemic issue that compromises the integrity of these institutions.
meanwhile, those not affiliated with religious political parties, who have demonstrated exemplary integrity and honesty in managing other institutions, find themselves overlooked in the establishment of charitable organizations.
it begs the question of what barriers exist preventing the formation of such organizations by individuals with proven track records of ethical stewardship, as exemplified by their management of associations like the graduates association and the association of socialists and writers.
we extend to the honorable alkhaled family our deepest condolences on the death of our friend faisal abdul razzaq al-khaled.
may his family have patience and mercy.