The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has introduced a 10-point action plan aimed at addressing problems, irregularities, and the growing number of complaints from depositors in the cooperative sector. The ministry has directed all seven provincial governments and local bodies to implement the plan.
According to the ministry, the initiative seeks to enhance monitoring of cooperatives operating in violation of the law and identify the actual status of inactive institutions across the country.
Under the action plan, all cooperatives will be required to join the Cooperative Management Information System (COPOMIS). The ministry has also instructed authorities to accelerate the updating of records and information of cooperative institutions in accordance with the Cooperative Act.
The ministry has directed provincial and local governments to prepare a list and collect detailed information on cooperatives that have not held annual general meetings, conducted audits, or joined the COPOMIS system for more than two years. It said this process would help identify inactive and high-risk cooperatives and pave the way for necessary action.
The action plan also requires authorities to verify whether savings and credit cooperatives have obtained the necessary licenses to conduct financial transactions. For this purpose, coordination with the National Cooperative Regulatory Authority has been emphasized.
In addition, the ministry has instructed authorities to maintain updated records of orders, directives, fines, and other actions taken following inspections. Cooperatives showing signs of financial risk will be subjected to enhanced monitoring and supervision.
The action plan further calls for suggestions from provincial and local governments on legal reforms needed to make the processes of cooperative administration, registration, regulation, monitoring, and dissolution more effective. The ministry has asked them to submit their recommendations within 15 days.
