On Tuesday, MACC arrested the chairman, secretary, treasurer and board member of Koperasi Telekom Malaysia (Kotamas). Two others were also arrested, namely the owner of a supply company to the cooperative, and the board member’s wife, who is a civil servant.
The six are being remanded for five days from yesterday to facilitate investigations.
The MCC said it was taking over Kotamas to “protect the sanctity of the country’s first registered cooperative”, and that among its priorities was the job “to recoup every sen owed to Kotamas”.
According to the daily, MCC, which is the regulatory body for cooperatives in the country, appointed Md Yusof Samsudin as the administrator of Kotamas.
Yusof told the NST that his mission would be to identify and rectify weaknesses in key areas, and ensure that there was no room for corrupt practices or abuses of power.
“We are focusing on three areas — management, business activities and the recovery plan.
“We are also looking into the provision of the by-laws, and if we find weaknesses, we will rectify them to ensure good governance.
“In terms of business activities, we are looking at simplifying certain provisions for loan applications. This includes stopping the use of vendors.
“Members will get loans in cash and can buy products at any store they choose,” Yusof was quoted as saying.
He added that legal action would also be taken against any company found to be owing the cooperative money.
“We will take legal action against these companies. We have referred the matter to our lawyer.”
The six individuals arrested by the MACC are being investigated for fraud and abuse that had resulted in Kotamas losing up to RM23 million.
The loss was allegedly linked to one supply company, which had been the sole vendor for Kotamas since 2015.
Meanwhile, Yusof, whose stint is expected to last two years, also reassured Kotamas members that it was business as usual at the cooperative.
“Kotamas has enough capital to provide loans at a low interest rate,” he told NST, adding that he hoped members would not lose confidence in the cooperative.
MCC executive vice-chairman (operation and regulatory) Meriam Mat Nor said the takeover was done following reports lodged by its members.
“It is to rectify problems in the cooperative, especially in terms of its management, expenses and investments.
“We want to make sure that everything is being done according to the law.
“At the same time, we want to make sure the cooperative will be able to develop,” she was quoted as saying by the NST, adding that the move was allowed for under the Cooperative Act 1993.
She also said Yusof’s two-year secondment to Kotamas may be shortened or extended depending on how swiftly problems in Kotamas could be rectified.
Koperasi Telekom lost RM23 million due to fraud, says report