The Consumers Association of Penang disagrees with those who recently voiced their opinion that the amendments to the Co-operatives Act 1993 will kill the co-operative movement.
Many of our local co-operatives do not operate in the spirit in which co-operatives are founded – which is mutual help to improve the social and economic well being of its members.
Many times co-operatives end up benefiting only the office bearers. There have been numerous cases of missing funds, abuse of power and mismanagement by the directors of co-operatives.
We have also received many complaints from members who lost their money when their co-operatives became insolvent.
There is no doubt that there is a need to have greater control over the activities of co-operatives to ensure that funds are not abused for personal use.
Genuine co-operatives should not fear the new amendments