A series of botched investments between 1996 and 1999 has landed the PAS-linked Koperasi Al-Hilal Bhd (Kohilal) - which is believed to have RM60 million in assets - in hot soup, and it is now staring at the possibility of its premises being auctioned off.

Former Kohilal member Abdul Aziz Awang Kecil has obtained from the Temerloh Sessions Court a writ of seizure and sales against the cooperative for the return of his investment amounting to RM48,055.

His lawyer, who requested anonymity, told malaysiakini that the order was issued in June 2003 after Kohilal ignored his client's claim.

"We filed the suit in 2002 but they (Kohilal) did not answer. When the case came up in court they did not come. So that's how we got the judgment," he added.

He said after the first attachment to auction the cooperative's premises in Jalan Sarekei off Jalan Pahang was filed, a Kohilal representative said they wanted to settle the sum and asked him to withdraw his action.

"But after sometime, we received no money. So I filed a second attachment in June 2004 and I got the court bailiff to seal the ground floor of their premises which is a three-storey shop lot. Then another representative said they wanted to settle the amount," he added.

Monthly installments

The lawyer said he withdrew the action after they agreed to pay his client RM10,000 and promised to settle the remaining sum of RM38,000 through monthly installments.

"We agreed that Kohilal will pay my client RM1,000 a month until the remaining sum is settled. But unfortunately until today I have not seen a single sen apart from the RM10,000," he added.

He said he has already filed a third attachment to auction the premises to recover the remaining sum and is awaiting a notice from the Kuala Lumpur court's bailiff.

"This time, I think, we will ask for the whole premises to be sealed. We have been patient for so long and I think they have taken advantage of us," stressed the Pahang-based lawyer.

The alleged mismanagement of Kohilal's investments has plagued PAS as most of the cooperative's board of directors are party leaders and workers.

The issue had been raised in party meetings and conferences including the recent munaqashah (special convention).

The delegates who had raised the issue, among others, wanted the leaders responsible for the botched investments to own up to their mistakes and resign.

The discontentment revolves around millions of ringgit collected from cooperative members between 1996 and 1999. The status of the various business investments, including in an ostrich farm in Australia, is still unknown.

Neither PAS leaders nor cooperative officials have clarified the matter.

The dissatisfaction had also led to the mass resignation of Kohilal's directors chaired by Senator Hassan Shukri, who is now PAS' deputy president, in June 2002. He had been helming the cooperative since 1996.

'We're not stupid'

Contacted later, Kohilal's current chairperson Saidon Othman confirmed there was an agreement to pay Abdul Aziz the remaining RM38,000 owed to him in monthly installments.

"Yes, the board agreed to that and we have done our part by issuing about 35 post-dated cheques. We have given them to our lawyer in Kuantan. I think they should just talk to our lawyer and the matter will be settled," he added.

Asked on Kohilal's failure to respond to the suit when it was first filed in 2002, Saadon said that he knew nothing about the suit as it was filed before the new board of directors took over.

However, Abdul Aziz's lawyer insisted that he received no cheques from the cooperative and said that he would continue with his application to recover his client's money.

"We are not asking you to pay debt. My client just want his money back so that he can start a small business. That's all. We are patient but we are not stupid. If I get the money before I get the bailiff's notice then maybe I'll consider dropping the whole thing," he said.

Meanwhile, a cooperative insider said the current board is now forced to clean the mess created by the previous management.

"The previous board refused to do anything and had arrogantly ignored the suit when they were served with the legal documents.

"Had they properly appointed a lawyer to answer the suit, the cooperative may not have to pay anything at all. After all, any disputes can only be settled in a cooperative tribunal," he added.