By Thuraisingham Shun
It is indeed an irony that an Indian representative cannot be compromised for one or two seats rather than a monopoly of one community
1st January 2008 saw the implementation of the reluctant Malaysia Cooperative Act, with its draconian laws set to scrounge more funds from the people’s organisation - the Malaysian cooperative fraternity. With much dissatisfaction and insecurity, this issue has been taken to the Malaysian courts for redress.
The Malaysian Cooperative Commission is spearheaded by twelve members, appointed by the King, on the recommendations of the Minister responsible for the cooperative movement.
No Indian representation was preferred in the 12 member Board. Shortcomings of our non-representation were highlighted by the leader of our Indian community in the media.
Sad to say, the Executive Chairman of the Cooperative Commission had reasoned to the media that one member of the Board was a Chinese and the rest were Malays. His reasoning was that the Malaysian Indian population was 7% and the number of Indian cooperatives being only 84, was only 2% of the number of cooperatives as such Indian representation is not needed.
Recapitulating - the first cooperative in our nation was initiated by 9 members of the Ceylonese community and they formed the Jaffanese Cooperative Thrift and Loan Society in 1922 - as it was a communal cooperative, it was only registered in 1924.
The pioneers of this movement then proceeded to form the Telecoms Cooperative, the cooperative for the staff of the postals, the staff of the railway. In fact this group pioneered the first 20 Cooperatives for our nation, and these cooperatives still continue to exist, viable and strong.
It is indeed an irony that an Indian representative cannot be compromised for one or two seats rather than a monopoly of one community.
The recent classification of the multiracial Malaysian cooperative movement in racial overtures by Dato Mangsor Saad, the Executive Chairman of the Malaysian Cooperative Commission, does not augur well for the movement of 87 years. The way the Malaysian Indian population is being quantified in a racial slur is unbecoming of an officer chosen to resuscitate the ailing cooperative movement and is an insult to the community concerned.
This little napoleon has now stepped on racial sentiments, whilst he was the culprit who was responsible for the drafting of the reluctant Cooperative Commission Act, and the Cooperative Act 1993, which has strayed into the Malaysian Constitution on the rights of forming associations and trying to moblise funds in contravention of the Malaysian Constitution.
Appointments to the board of the Commission is the prerogative of the King, and the Minister responsible for the department concerned commenting on the appointments by Dato Mangsor is a slur to the Indian community.
The statements hurled are immature statements by a so-called guardian of the cooperative fraternity. This, again, is in contravention of the Malaysian Prime Minister's idealogy of the 1 Malaysia concept.
He was the culprit who was responsible for the drafting of the acts, and he has wormed his way to the top position to be Chairman of the Cooperative Commission. And this is a conflict of interest.
Likewise his making announcements is subjudice when the matters are being contested in the courts. This is deemed contempt of court.
This little napoleon has stirred up a constitutional matter which is in the Malaysian courts for redress.
In public forums and documents, he has made degrading statements that members of the Malaysian Cooperative fraternity are inferior to members of “negara negara maju”, who are well informed, know their rights and exercise their rights properly.
These remarks show how ill informed, prejudicial and colonial minded Mangsor Saad is.
The amendment to the acts and the implementation of the same has denied the members the right to select their own office bearers.
Billions of savings of the prudent and successful Indian cooperatives are being compelled to transfer their reserves. Such savings and excess funds are transferred to the coffers of the Cooperative Commission to manage in contravention of the noble constitution.
He has classified that 95% of the cooperatives are bumiputra inclined and 2% as Indian based and 3% of Chinese and others, which is totally untrue. He has overlooked the fact that 50% of cooperatives are multi-racial based.
His classifying the movement in a racial sentiment is indeed uncalled for.
LOOKS LIKE HE IS CREATING A HALAL HUB for the multiracial COOPERATIVE movement.
Out of the 86 Indian cooperatives classified, it could well be amplified that these cooperatives are SOLVENT and STRONG, HEALTHY and VIABLE.
It is a known fact that RM150 million was used to resuscitate Bank Koperasi Rakyaat, and Bank Koperasi Rakyaat was involved in the Tinju Dunia episode and had not held their Annual General Meeting for 15 years and they are in a catch 22 situation with fictitious loans. And a major subsidiary is on provisional liquidation.
Likewise billions of government funds have been infused to resuscitate ailing and bankrupt cooperatives, which are yet to be resuscitated.
Dato Mangsor has crossed the borders of democracy by creating draconian laws - failing to view the logic that the threat of arrest without a warrant is overboard, drafting laws to provide total immunity to himself and his officers.
It was stated in Parliament that cooperative officers were privy to allowances from cooperative organisations.
Over and above the cooperative movements, funds moblised for the Education Trust Fund and the Cooperative Development Trust Fund over the years have seen no transparency and accountability. Funds mobilised from deregistered societies have been misused.
Now the movement is at the mercy of contributing to a number of funds created by the Cooperative Commission Act.
The department is in ignorance of government investments in cooperative ventures.
The cooperative movement which was the 3rd economic sector of the nation has been dragged down as the 4th engine of growth.
The cooperative movement is in a precarious situation and needs to be resuscitated. The Cooperative Commission is ill-equipped to manage the movement. Millions expended for government sponsored apex organisations are in limbo. Government infused funds are in limbo.
Management of cooperatives have been ill-advised by the authorities. Ill-experienced consultants have been contracted to study the movement.
Two Ministers have come and gone, the rules and regulations are yet to be gazetted, preceded by the vesting orders which have to be first gazetted before the rules and regulations are implemented.
If the Government can be transparent and accountable, it is hoped that the audited accounts of the Cooperative Commission for the year ending 2008 is made available to the movement at large to gauge the viability of the Cooperative Commission to manage the cooperative funds.
Private Sector Initiative (PSI) programmes have been long submitted to the Prime Minister, the then Minister of Cooperative and Entrepreneur Development, the Education Minister, the present Minister of Consumers and Cooperative Affairs, the Minister of Women’s Development and other organisations some of which has been hijacked.
The Malaysian cooperative movement must face the challenges of globalisation and to change towards a new direction of viability to instill confidence to the 6,000 cooperatives with a membership of 6 million snowballing to 13 million with family members included. This organisation cannot be manipulated any more. It is a people’s organisation built over trust, stability and self confidence with the sweat and blood of our pioneers.
Our team would be initiating discussions with our Prime Minister to resuscitate the ailing cooperative sector soon.
Thuraisingham Shun is a Cooperative and Management Consultant, he was the first Malaysian to be awarded the Bonow Fellowship award by the International Cooperative Alliance, Geneva and was the only Malaysian amongst nine nominees worldwide for the Rochdale Pioneer Awards in Cartegena.
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