Government should turn cooperative societies into a giant corporation

Reports of corruption in Kuwait's cooperative societies periodically prompt the Ministry of Social Affairs to dissolve boards and refer members to the Public Prosecution on suspected embezzlement and other violations. But the article argues that removing board members alone will not solve the deeper problem.

Cooperative societies were created around the “owner-consumer” principle: consumers became shareholders and received a share of the profits. The article credits the late Sheikh Jaber Al-Ahmad with drawing inspiration from the idea during a visit to Beijing, accompanied, as the writer recalls, by then-Minister Abdulrahman Al-Ateeqi. Al-Ateeqi later enacted the Cooperative Societies Law in 1979.

Under that system, cooperatives served residents in the areas where they operated. Their responsibilities included social, cultural and health services, support for schools, summer activities, annual profit distributions and contributions to neighborhood cleanliness and beautification. The writer says they initially fulfilled that role without illegal practices and prospered for years.

The article says personal interests later redirected the societies toward certain board members. Elections became a route for creating political figures and influential people, while corruption spread amid weak oversight and declining ethical standards, particularly after Kuwait's liberation from the Iraqi invasion and the resulting erosion of national trust.

The writer describes Social Affairs Minister Dr. Amthal Al-Huwailah's anti-corruption efforts as clear and commendable, but asks how long the ministry can continue dissolving boards and appointing replacements. The proposed alternative is to transform cooperatives into large joint-stock companies, possibly one corporation covering all of Kuwait, while ensuring uninterrupted services and preserving their role in serving residents.