Samy Vellu slams new Co-op Act
Yip Ai TsinPublished: Jul 6, 2009 2:56 PM | Updated: Jul 6, 2009 7:57 PM
Hoping to resolve the plight of the co-operative movement in the country, MIC president S Samy Vellu has vowed to bring up the shortcomings of the Malaysia Co-operative Commission (MCC) and Malaysia Co-operative Societies Commission Act 2007 to the Prime Minister as soon as it is possible.
Hoping to resolve the plight of the co-operative movement in the country, MIC president S Samy Vellu has vowed to bring up the shortcomings of the Malaysia Co-operative Commission (MCC) and Malaysia Co-operative Societies Commission Act 2007 to the Prime Minister as soon as it is possible.
He chided lawmakers who voted the bill in and for not consulting members of the co-operative movement beforehand.
"How could the people who drafted and passed this act be so careless? With this act, what will be the eventual fate of the co-operatives?" he asked.
Samy Vellu (right) told Malaysiakini that it is unfair not to have representatives from the Indian community in MCC as they had been the forefathers of the co-operative movement and were the pioneers of very big co-operatives such as the National Land Finance Co-operative Society (NLFS).
"Racial composition must be followed in every set up that they do. Then only people from other races will feel that they have a place in whatever new commission formed by the government.
"The multi racial composition of this country should be reflected in the commissions' membership. But here I see, no one from the Indian community is given any opportunity," he said.
He also wanted to know why the act had been passed without approval from members of the co-operatives.
"Co-operatives are a great way of bringing progress to the people. If such an act is created, it will hinder the growth of the co-operatives. This is very, very wrong.
"When you adopt a new act, that act should be approved by the people within the co-operative movement. Here, the rights of the members are deprived. In a co-operative, the member has the first right because he is the owner of the co-operative.
He said that it was the investment pf the individual member that made the co-operative strong and it is because of the trust the members placed in the co-operative that they invested money.
Second look needed
Samy Vellu, who also heads the Koperasi Pekerja Jaya (KPJ), said that he hoped the government will take a second look at the MCC and review the Co-operative Commission Act.
"The co-operative commission is very one sided. Very strong powers are given to them, very draconian powers. They can do anything to anybody. I don't think in a democratic country like ours, we should just grant such powers to one particular organisation," he said.
He also said that "such a big amendment" to the Cooperative Societies Act 1993, should have had the consent from all major co-operative societies.
"They never consulted anybody and just came up with the act. We've been told to shut up and adopt the act. That is very, very wrong because there was no consultation," he said.
He said that Section 43 of the act, in particular, is a "very dangerous clause" as it dictates that "all co operative societies must deposit into the Co operative Deposit Account funds 'not immediately needed for operations or investment' without provision for compensations".
This, he said, will discourage active cooperatives as most co-operatives work very hard in saving their money.
Now they've been told that their money will be taken from them.
"It is out of their efficiency that they have achieved this and the government must appreciate it rather than take it away.
"Furthermore, when the commission invest, we do not know whether it is a rightful investment or not. Based on past histories, we have to be very careful in handling the matter.
He also said that Section 54 of the act, stating that Aevery offence, punishable under the act, shall be a seizable offence, will hinder people from getting involved in co-operatives.
"Maybe, the idea is that with more and more mistakes, more fines can be collected. Even in criminal cases you don't see people being fine so high as this.
Samy Vellu who left for India after this interview, said that he is impressed with the co-operative societies in India and Bangladesh.
"In India, the co-operative movement is very strong. I'm so surprised in countries like Bangladesh and India, the people are running small cooperatives that are helpful to the members and to the people," he said.
Samy Vellu heads two of the largest co-operatives in this country, KPJ and the newly formed Koperasi Didik.
KPJ, with over 30,000 members, specialises in housing schemes and was established in 1979 by Samy Vellu.
Also present was Co-operative Consultant Thuraisingham Shun, who also agreed with Samy Vellu.
He said that that the co-operative movement in Malaysia was pioneered even before the Co-operative Societies Act came into being.
The first cooperative was the Jaffanese Co-operative Society, followed by the Telecoms Co-operative society, the Government Servants Co-operative Society and other which still continue to exist today.
The co-operative movement in Malaysia is 87 years old.
He chided lawmakers who voted the bill in and for not consulting members of the co-operative movement beforehand.
"How could the people who drafted and passed this act be so careless? With this act, what will be the eventual fate of the co-operatives?" he asked.
Samy Vellu (right) told Malaysiakini that it is unfair not to have representatives from the Indian community in MCC as they had been the forefathers of the co-operative movement and were the pioneers of very big co-operatives such as the National Land Finance Co-operative Society (NLFS)."Racial composition must be followed in every set up that they do. Then only people from other races will feel that they have a place in whatever new commission formed by the government.
"The multi racial composition of this country should be reflected in the commissions' membership. But here I see, no one from the Indian community is given any opportunity," he said.
He also wanted to know why the act had been passed without approval from members of the co-operatives.
"Co-operatives are a great way of bringing progress to the people. If such an act is created, it will hinder the growth of the co-operatives. This is very, very wrong.
"When you adopt a new act, that act should be approved by the people within the co-operative movement. Here, the rights of the members are deprived. In a co-operative, the member has the first right because he is the owner of the co-operative.
He said that it was the investment pf the individual member that made the co-operative strong and it is because of the trust the members placed in the co-operative that they invested money.
Second look needed
Samy Vellu, who also heads the Koperasi Pekerja Jaya (KPJ), said that he hoped the government will take a second look at the MCC and review the Co-operative Commission Act.
"The co-operative commission is very one sided. Very strong powers are given to them, very draconian powers. They can do anything to anybody. I don't think in a democratic country like ours, we should just grant such powers to one particular organisation," he said.He also said that "such a big amendment" to the Cooperative Societies Act 1993, should have had the consent from all major co-operative societies.
"They never consulted anybody and just came up with the act. We've been told to shut up and adopt the act. That is very, very wrong because there was no consultation," he said.
He said that Section 43 of the act, in particular, is a "very dangerous clause" as it dictates that "all co operative societies must deposit into the Co operative Deposit Account funds 'not immediately needed for operations or investment' without provision for compensations".
This, he said, will discourage active cooperatives as most co-operatives work very hard in saving their money.
Now they've been told that their money will be taken from them."It is out of their efficiency that they have achieved this and the government must appreciate it rather than take it away.
"Furthermore, when the commission invest, we do not know whether it is a rightful investment or not. Based on past histories, we have to be very careful in handling the matter.
He also said that Section 54 of the act, stating that Aevery offence, punishable under the act, shall be a seizable offence, will hinder people from getting involved in co-operatives.
"Maybe, the idea is that with more and more mistakes, more fines can be collected. Even in criminal cases you don't see people being fine so high as this.
Samy Vellu who left for India after this interview, said that he is impressed with the co-operative societies in India and Bangladesh.
"In India, the co-operative movement is very strong. I'm so surprised in countries like Bangladesh and India, the people are running small cooperatives that are helpful to the members and to the people," he said.
Samy Vellu heads two of the largest co-operatives in this country, KPJ and the newly formed Koperasi Didik.
KPJ, with over 30,000 members, specialises in housing schemes and was established in 1979 by Samy Vellu.
Also present was Co-operative Consultant Thuraisingham Shun, who also agreed with Samy Vellu.
He said that that the co-operative movement in Malaysia was pioneered even before the Co-operative Societies Act came into being.
The first cooperative was the Jaffanese Co-operative Society, followed by the Telecoms Co-operative society, the Government Servants Co-operative Society and other which still continue to exist today.
The co-operative movement in Malaysia is 87 years old.
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