KUALA LUMPUR: THE Malaysian Cooperative Commission (MCC) has moved to take over the management of Koperasi Telekom Malaysia Bhd (Kota Mas) to protect the sanctity of the country’s first registered cooperative.
Among its priorities is to recoup every sen owed to them.
MCC, which is the regulatory body for cooperatives in the country, appointed Datuk Md Yusof Samsudin as the administrator of Kota Mas.
Speaking to the New Straits Times yesterday, Yusof said his mission would be to identify and rectify weaknesses in key areas, and ensure that there was no room for corrupt practices or abuse of power.
“We are focusing on three areas — management, business activities and the recovery plan.
“We are also looking into the provision of the by-laws, and if we find weaknesses, we will rectify them to ensure good governance.
“In terms of business activities, we are looking at simplifying certain provisions for loan applications. This includes stopping the use of vendors.
“Members will get loans in cash and can buy products at any store they choose.”
Kotamas, Yusof said, was ready to act against companies which owed the cooperative money.
“We will take legal action against these companies. We have referred the matter to our lawyer.”
It was reported that a company had an accumulated debt of RM23 million with Kota Mas and had not been dealt with by the cooperative.
Yusof assured the members of the cooperative that it was operating as normal.
“Kota Mas has enough capital to provide loans at a low interest rate.”
He said he hoped members would not lose confidence in the cooperative.
MCC executive vice-chairman (operation and regulatory) Meriam Mat Nor said the takeover was done following reports lodged by its members, who were affected by the board of directors’ dispute.
“It is to rectify problems in the cooperative, especially in terms of its management, expenses and investments.
“We want to make sure that everything is being done according to the law.
“At the same time, we want to make sure the cooperative will
be able to develop,” she said, adding that the move was allowed for under the Cooperative Act 1993.
Meriam said Yusof’s stint would be for two years.
“But, it also depends on how swiftly the problems in Kota Mas can be rectified. We may extend the term if needed.
“When everything is under control, we will call an annual general meeting for Kota Mas members to choose a new board of directors.”