The Malaysian Cooperative Societies Commission Annual Report 2008 misstated

By Thuraisingham Shun, Cooperative & Management Consultant, Advisor Cooperative Union of Malaysia and Midlands Cooperative 

The Malaysian Cooperative Societies Commission Annual Report 2008 is inundated with alarming shortcomings:

* the annual accounts have been prepared without vesting orders
* the paid up capital of RM300 million has been omitted
* liabilities to the government in billions omitted
     Bank Rakyaat – RM150 billion
     MOCCIS – RM78 million
     7 cooperatives – RM130 million
     Other amounts reflected in Audit Negara report not reflected
* Millions expended to set up a number of apex organisations have been omitted
* expenditure to purchase computers too high
* Income from investment of fund accounts has been credited to the income and expenditure accounts
* the accounting system is being balanced by the fund accounts
* Details of pending legal action against the Commission has been omitted
* comparative figures for the previous accounting period is not indicated
* details of fund accounts expended not detailed
* the fixed assets listing has no clarity
* Accounts has been qualified by a director who was not a director during the accounting period
* according to reports in the media, the Commission had an asset backing of RM49 billion which is not reflected in the Accounts
* disposal of assets illegal
* trust funds being utilised as income is being depleted
* trust funds belong to the contributors, as such they must be listed
* millions expended to ANGKASA from the trust funds not audited
* mismanagement of funds in ANGKASA reflected in a report not acted upon
* cooperatives are reflected in racial quantification contravening the National Cooperative Policy
* report of management consultants on the National Cooperative Policy not indicated
* ambiguous government gazette on the apex status of ANGKASA is prevailing
* Central Liquidity Fund details gazetted when matter is still pending in court
* illegality of school cooperatives not addressed
* School cooperatives allowed to enter into contracts, contravening the age of majority and the Contracts Act
* profits of school cooperatives being used by headmasters
* position of Cooperative Central Bank fiasco and the deposit taking cooperatives not explained
* funds from deregistered societies being used by the Commission
* Commission’s circular to cooperatives to write-off Cooperative Central Bank’s shares to RM1 is illegal
* Lembaga Pertubuhan Peladang’s asseta not indicated in reports
* Same for Fisheries Cooperatives
* Rubber Smallholders Cooperatives not under the purview of the Commission – the Cooperative Commission was set up to consolidate all cooperatives

This account, I understand had been presented to Parliament and adopted. It is understood
that the 2009 annual accounts is also being bulldozed through Parliament with all these
mistakes and misrepresentations.