The financially-troubled Koperasi Al-Hilal Berhad (Kohilal) - a co-operative society closely linked to PAS - can expect more woes following a ruling by the Co-operative Societies Tribunal that the appointment of the current board of directors was carried out unlawfully.

On Feb 21, tribunal chairperson Sapini Mat Saman ruled that Kohilal's board meeting conducted on Feb 28 last year in which a vote of no-confidence was passed against the previous chairperson Ahmad Radzi Abdullah and secretary Zakaria Abdul Aziz as "null and void".

He also declared that the appointments of the current chairperson Saidon Othman and secretary Md Shukor Aziz (at the same meeting) as "illegal" and reinstated Ahmad Radzi and Zakaria to the posts.

Ahmad Radzi's lawyer Hasnan Hamzah told malaysiakini that the tribunal made the ruling after finding that the board meeting had not followed the procedures and requirements stipulated in the Kohilal constitution.

He said the tribunal agreed with his arguments that the board meeting was unlawful due to the lack of quorum and that the members had no locus standi to sit as board directors then, as they owned less than RM2,000 worth of shares - the minimum required for a board member.

Back to status quo

Hasnan pointed out that the ruling also affected all decisions, both administratively and financially, made by the board headed by Saidon from Feb 28 last year.

"So it's back to status quo. Legally my client can now sit and head the board of directors," he said in an interview at his office in Jalan Pahang, Kuala Lumpur.

Asked if Ahmad Radzi has reported for duty, Hasnan said he did not know but was informed that there had been a discussion between his client and the (now unlawful) board members, which was mediated by the Co-operative Development Department (JPK) officers.

"My clients told me that JPK called for a meeting on Feb 26 with the two disputed parties. But I have no knowledge on the outcome of the meeting because my duties to my client ended after the tribunal made its decision," he said.

Md Shukor confirmed having attended the meeting with Ahmad Radzi last Saturday and expressed regret that the two parties could not reach understanding over the issue.

He declined to comment on information that the six respondents named in the claim are considering lodging an appeal in the Kuala Lumpur High Court against the tribunal's decision.

"We want to discuss the issue first. If possible, we want to settle this out of court. I cannot confirm anything right now. Maybe things will look clearer next week," he said.

More allegations

Meanwhile sources in PAS claimed that the legal tussle between the two parties is connected to Kohilal's botched investments made between 1996 and 1999 which led to a loss of RM46.5 million.

A Kuala Lumpur politician who declined to be named claimed that Ahmad Radzi had been sidelined as he was not in favour of investigating the botched investments.

"This went against members' wishes who wanted a thorough investigation into the losses. But somehow, his (Ahmad Radzi's) actions then made it very difficult for any investigation," he alleged.

However, an acquaintance of Ahmad Radzi countered the claim, but requested not to be identified.

"Ahmad Radzi is a very outspoken person. He wanted to get to the root of the problems that had led to the losses, which occurred before he took over. He wanted o correct the situation there. That made a lot of people unhappy and that's why they looked for ways to oust him," he claimed.

PAS central working committee member Dr Syed Azman Syed Ahmad Nawawi said the party would do its best to find a solution for affected investors.

"We are taking action. A special committee has been set up which will submit a report to the party's central committee on March 13," he said when contacted.

The alleged mismanagement of Kohilal has haunted recent party meetings and is expected to be raised at the upcoming general assembly or muktamar scheduled on June 1-5.

PAS deputy president Senator Hassan Shukri, who had helmed Kohilal since 1996, led a mass resignation of the co-operative's board of directors in June 2002 following growing dissatisfaction among members.