Graft allegations galore against cooperatives

Several thousand graft allegations have piled up with the department of cooperatives against the managing bodies of multipurpose cooperative societies across the country over the years for lack of action, officials said.  
Dillydallying by the authorities concerned in settling the allegations and taking preventive action -- for reasons better understood than explained -- has mainly been blamed for such a situation.       
There have been allegations galore on misappropriation of billions of taka by many muscle-wielding men on the managing bodies of cooperatives.
According to sources at the Department of Cooperatives (DoC), so far around four thousand complaints have been lodged with different offices of the department across the country between 2011 and 2012.
The complainants sought action against the authorities of the multipurpose cooperative societies (MCS) for their alleged involvement in financial irregularities.
Although the department initiated investigation against most of the complaints, no visible actions had yet been taken by the DoC authorities.
Remedies elude the helpless cooperators despite necessary provisions are there in the existing law for bringing the errant MCS managers to book.
Moreover, the dillydallying attitude of the authorities concerned created space for many MCSs to sell out their rest of the property and assets.
Such alleged anarchic situation is creating further uncertainty over recovery of the embezzled money, victims said.
Under the existing provisions of the cooperatives act, if the MCSs are found guilty of financial embezzlement, the DoC can confiscate the assets of the cooperatives, dissolving the managing committee.
In further punitive action, the department can freeze bank account, appoint administrator to MCSs concerned, take initiative for an amicable solution and dispose of the property.
Besides, the law also has powered the authority to take action against its officers for neglect of their duty which paved way for the MCSs to shift the deposited money.   
However, high officials at the DoC said the department cannot apply the provisions for shortage of manpower and some other complicacies of the law.
"Due to shortage of manpower we have not yet confiscated property of MCSs. The department does not have enough force to go for such action," additional registrar (admin) of the DoC Amiya Kumar Chattapadhya told the FE.
He, however, said the department is putting pressure on the managing bodies of the MCS to pay off all the dues of their clients.
Replying to a query, Mr Chattapadhya said due to complexities in some provisions of the cooperative act the department cannot levy fine or issue arrest warrant against the MCS authorities.
"We have written letter to the ministry for some clarification of laws. After receiving reply, I think the department would be able to issue arrest warranty against the guilty," he added.
However, experts said indifference on the part of the DoC is suspicious and paving the way for the MCS authorities to siphon off the defalcated money and then go into hiding.
"Immediately after receiving complaints, the DoC could issue injunction on property and freeze bank account of an MCS. But they do not do that and rather request the MCS authorities to sell out their property and pay off all the dues," executive director of the Transparency International Bangladesh (TIB) Dr Iftekharuzzaman told the FE.
"It is clear that the MCSs' authorities deceive the innocent people by luring them with promises of high profit and later go into hiding. So the DoC should take immediate steps to issue injunction on all tangible properties of the MCSs," he added.
"If such actions are taken only then we would think that the department was working neutrally," said the local campaigner of the international anti-graft watchdog based in Berlin.  
However, government-approved cooperative societies across the country have been caught up in scams involving billions of taka, received as deposits from the clients.
The MCS were allowed to take deposits from people other than their members as per the Cooperative Act-2001. But the Act amended once again early last year deleted the provision.
According to different district cooperative officers, many societies allegedly collected deposits worth billions of taka from people, assuring them of paying lucrative returns every month.
They promised to offer interests as high as 25 per cent on monthly basis.
After giving the benefits for a certain period of time, they succeeded in collecting more money from greater numbers of people.
After some years of such brouhaha, the organisers of these societies vanished, leaving behind hundreds of people defrauded.
Sources at the DoC guesstimated the amount of money thus mobilised to be around Tk 200 billion, including that of the much- talked-about Destiny Multipurpose Cooperative Society Ltd.

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