Ministry Examining Several Co-op Auditors under Social Affairs Jurisdiction
A Fresh Spin
Dr. Amthal Al-Huwailah, Minister of Social Affairs, Family, and Childhood Affairs, has issued orders to crack down on negligent auditors in cooperative societies. This move comes in response to financial and administrative irregularities that have led to the dismissal of board members and referrals to the Anti-Corruption Authority, as reported by Al Jarida.
In the aftermath of these revelations, the ministry's Legal Affairs Sector, via the Investigations and Contracts Department, has launched a massive investigation into countless auditors assigned to these cooperatives.
The ministry is clear: if any negligence or wrongdoing—intentional or unintentional—is discovered, causing harm to a cooperative society, affecting its financial stability, or leading to the loss of shareholder funds, stringent penalties will be imposed. These penalties may include deductions from salaries, and in severe cases, disqualification from serving as a cooperative observer.
It's important to note that these penalties won't be aimed solely at employees within the cooperative sector. Any staff member found to be falls short in their duties or overlooks administrative concerns will face repercussions.
As a bridge between the ministry and cooperative boards, auditors wield significant influence over key decisions, such as board dissolutions, member dismissals, and referrals to legal authorities. As such, their reports must be meticulously accurate to avoid any form of negligence, leniency, or concealment of violations. Failure to do so will result in accountability, legal consequences, and disciplinary measures.
To substantiate their findings, auditors must provide evidence—relevant documents and papers—and act swiftly, preventing comprehensive violations through proactive application of penalties as specified by law and regulations.
The ministry regards the cooperative supervisor as its eyes over all administrative and financial activities within these associations. The principle of "Preventing corruption takes precedence over attaining benefit" guides them in ensuring that potential sources of corruption are thwarted and violations are prevented from escalating.
To strengthen the performance of cooperative auditors and uphold the highest standards of integrity and transparency, the ministry has organized specialized training courses. These courses aim to hone auditors' abilities to prepare thorough financial and administrative reports, based on solid legal principles, ensuring the validity of any observation or violation recorded against a cooperative.
These training sessions also covered the legal handling of detected violations, with a focus on enhancing auditors' competence, impartiality, and professionalism—qualities essential to their crucial role.
- The Investigations and Contracts Department, part of the ministry's Legal Affairs Sector, is examining numerous auditors assigned to cooperatives, as they hold significant influence over key decisions and must ensure meticulous accuracy in their reports to avoid negligence or concealment of violations.
- In the event of negligence or wrongdoing discovered by auditors that leads to harm to a cooperative society, financial instability, or loss of shareholder funds, stringent penalties will be imposed, ranging from salary deductions to disqualification from serving as a cooperative observer.
- The ministry, aiming to strengthen the performance of cooperative auditors and upholding the highest standards of integrity and transparency, has organized specialized training courses to improve their abilities, focusing on preparing thorough financial and administrative reports based on solid legal principles and ensuring the validity of any observation or violation recorded against a cooperative.
