KUALA LUMPUR: The Malaysia Co-operative Societies Commission (SKM) has the authority to remove cooperative board members, freeze bank accounts and investigate mismanagement or abuse of power that affects members' interests.
Deputy Entrepreneur Development and Cooperatives Minister Datuk Mohamad Alamin said these enforcement powers were provided under the Cooperative Societies Act 1993 to ensure proper governance and management of cooperatives.
"We can conduct inspections under Section 64 of Act 502 and, if necessary, open investigation papers under Section 45 of Act 665.
"Under Section 69(1) of Act 502, we have the authority to remove cooperative board members, suspend or dismiss them from their positions and impose compounds on cooperatives," he told the Dewan Rakyat today.
He was responding to a supplementary question from Datuk Adnan Abu Hassan (BN-Kuala Pilah), who asked whether SKM could take enforcement action against cooperative board members involved in misappropriation, abuse of power or poor management resulting in financial losses and affecting members' interests.
Mohamad said SKM has a dedicated enforcement unit empowered to investigate suspected offences and open investigation papers.
He said the commission also worked closely with other enforcement agencies, including the Malaysian Anti-Corruption Commission (MACC), police, Inland Revenue Board (IRB) and Securities Commission Malaysia.
"Sometimes, complaints fall beyond our jurisdiction, which is why we cooperate with other law enforcement agencies.
"We have also taken such measures in previous cases," he added.
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