A boardroom tussle within Koperasi Al-Hilal (Kohilal) - a co-operative society closely linked to PAS - has forced the Co-operative Development Department (JPK) to intervene into the running of the financially-troubled entity.

The department has invoked its powers under section 64 of the Co-operatives Society Act 1993 which allows the registrar-general and its officers to inspect accounts and documents of any co-operative society.

Kohilal executive director Md Shukor Aziz told malaysiakini that he received a letter from JPK last Wednesday, informing the co-operative society of the decision. Officers have since called at the office in Jalan Pahang, Kuala Lumpur, to inspect the documents.

"I believe this is the first step before the department invokes its other powers under sections 66 (to conduct an inquiry) and 69 of the Act before effectively taking over its administration," he said when contacted.

"When that happens the department will decide whether to suspend or dissolve the current board and appoint an ad-hoc board of directors to manage Kohilal pending the next EGM."

Md Shukor said the latest development was due to a "tussle" among board members following the re-instatement of Kohilal chairperson Ahmad Radzi Abdullah and secretary Zakaria Abdul Aziz who had successfully challenged a vote of no-confidence passed against them last year.

"We tried to patch things up after the co-operatives tribunal re-instated them, but failed to reach a compromise. The faction that initiated the vote of no-confidence is still at odds with the new chairperson and secretary and vice-versa.

"One group has six members, while the other has four. We need at least seven to hold a legal meeting...so we have not been able to hold a meeting. I think that's why JPK has taken action."

Members' interests

A PAS politician from Kuala Lumpur who declined to be named expressed concern for Kohilal's members who have continued to pay a monthly contribution of RM80 into their accounts.

"So who protects the members now? What will happen to their contributions? We must remember that most of them are party members and from the lower income group," he said.

"Something must be done to protect their interests. With the legal suits it is facing, the situation is worrisome."

He also lambasted the special committee formed by PAS to look into the problems that have been plaguing Kohilal, following its botched investments between 1996-1999 which have led to losses amount to several million ringgit.

"What has the so-called special committee done? Has it done its job? Are the members too busy with campaigning for party elections to look into this?" asked the politician.

However, Md Shukor explained that until JPK makes a finding, all decisions related to Kohilal's administration and finance have to be put on hold.

"No one can decide anything and no money can go out. We are only allowed to pay the workers' wages. I don't think this will be for long though. We are probably looking at a new board being set up by June."

As for the special committee, Md Shukor said he knows nothing about this or what it has done to date, adding that he has not met any of its members.

"I don't know what has happened to the committee. I don't know what is it supposed to do anyway. You should ask them instead," he said.