The Cooperatives Promotion Department has been instructed by the agriculture minister to check and grade all the cooperatives throughout the country in a bid to clean up cooperatives in the wake of mismanagement at Noppaklao Ruamjai savings cooperative.
Agriculture Minister Chatchai Sarikalya has vowed to take stiff legal action against the management of Noppaklao Ruamjai savings cooperative under probe for mismanagement and corruption.
He said that, initially, about 1,000 cooperatives are expected to be dissolved due to incompetency and mismanagement.
Cooperatives Promotion Department deputy director-general Pichet Viriyapaha said that the board of Noppaklao Ruamjai savings cooperative was being investigated and results are expected in 15 days.
He asked for calm among cooperative members, assuring that the cooperative would not go bankrupt or collapse as only a small amount of fund was lent out.
He indicated that certain rules regarding savings cooperatives and credit union cooperatives which have fund of more than 5 billion baht each need to be amended to prevent abuses by the management.
Regarding dividend to be paid to cooperative members, he said rule concerning dividend should be changed to set the amount of dividend to be paid to members at not more than 80 percent of net profit.
Source: Thai Public Broadcasting Service (Thai PBS)