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Penalties Imposed On Cooperatives That Do Not Buy Local Produce
The Cooperatives Sector in the Ministry of Social Affairs has toughened penalties for the boards of directors of cooperative societies that are not committed to the implementation of the mechanism for the direct purchase of local products at a rate of not less than 75 percent of their actual needs, reports Al-Jarida daily quoting a reliable source. The source disclosed that the committee formed as per the recent administrative decision on supporting the promotion of local agricultural produce in cooperatives will work for a period of four months; during which it will conduct field visits to the approved sales outlets to attend auctions, follow up and tally the participating cooperatives and their daily purchase rates, uncover violations, and then take the necessary legal measures.
The source said: “The committee will submit periodic reports about cooperatives that are not committed to implementing Ministerial Resolution number 115/T of 2022 on supporting the promotion of local agricultural products in cooperatives. Article 13 of this resolution stipulates penalties for erring cooperatives, starting with a warning to address the violation, up to the issuance of a ‘judicial seizure’ report that will lead to the suspension of bank credit for a certain period. Other penalties include non-submission of the erring cooperative’s requests to the concerned committees in the ministry, halting its transactions with governmental and private agencies, and suspending its employment file in coordination with the Public Authority for Manpower (PAM). The source added that the committee will also tally the daily purchases of vegetables in each cooperative, compare them to the actual needs, and monitor the quantities of local products available in the market to ensure the daily needs of cooperatives are covered.
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