The cooperative sector, the third largest abstracted economic sector of our nation is again in the doldrums. The movement is in a precarious situation. True information has not reached the top leadership. Eighty percent of cooperatives are inactive. The vicious cycle of the cooperative conundrum has reared its ugly head again.

In 1988, it was the deposit-taking fiasco, with the downfall of the Cooperative Central Bank (the idealistic, depleted 29 Leboh Ampang building is still in existence). The same year saw the economic crisis and the cooperative downturn.

Lat year saw the eminent cooperative fiasco with only 20% or about 732 cooperatives being active. Immediate measures must be initiated to check the rot. Billions of government funds which have been injected into some cooperatives would have to be written off if serious action is not initiated immediately to recoup the disbursement.

The collapse of the cooperative movement is eminent. It has to be restructured to befit its existence. Check the rot, heed the immediate past prime minister's clarion call for ‘the cooperative movement to come out from the cycle of low participation, low professionalism and productivity and become more professional in their approach into its operational existence'.

The government machinery is ill-equipped to administer this fraternity. The National Economic Action Council in its action plan had well outlined a perspective for the growth of this sector which has been ignored.

After 20 years, the government had initiated a salient Cooperative Policy in 2004. The policy, however, has not brought all the aspects of the cooperative movement within its ambit. It has not emphasised on the diversified character of the real structure of the cooperative movement. Its emphasis has been on the democratic and autonomous management.

No emphasis has been placed on economic and rural development. The cooperative movement in Malaysia is still rural-orientated; the policy has not meted out a salient directive for the urban areas.

Before we could realise the fruits of this policy, a shallow Cooperative Commission Act, full of flaws and doubts and with insecurity had reared its ugly head with draconian laws in force from Jan 1, 2008.

Sad to say, this people's movement has now limped into a state of chaos with the advent of reluctant entity, the ‘Cooperative Commission' with its draconian laws set to scrounge on the long-term savings of the cooperative members.

After 50 years of independence, this movement is being taken over by bureaucratic control with the advent of this Cooperative Commission. We had in the past honourably contributed in the millions to the Education Trust Fund for more than 50 years. Millions have been contributed to the Central Depository Fund from 1994.

We do not know how the monies have been spent. Transparency and accountability are demanded. The stakes are higher in the Malaysian cooperative fraternity. A fifth of our nation's population has accumulated billions of ringgit in members' contributions.

The third largest economic sector of our nation is in dire peril. Those responsible for the attempt to stifle the enthusiasm of these people-orientated organisations should be charged for ‘economic sabotage'.

The government machinery, the auditor-general, the Income Tax Department and the attorney-general should seriously dwell upon the controversy of this act for the benefit of the members of the cooperative fraternity whose membership encompasses the middle and lower-income group of society.