Eight Dasma co-op board members resign, cite financial woes

KUWAIT: Eight members of Dasma cooperative board of directors submitted their resignation, only two months after being elected due to its deteriorating financial situation. Chairman of the Board Essam Al-Ali explained that when he ran for elections along with some others, they knew the situation was bad, but what they discovered few days after forming the board was shocking as it became clear the situation was much worse than what had been published in the previous budget. Ali continued that when the co-op assets were checked, debts exceeded KD 9 million, and not KD 6 million according to official numbers.

He said the second obstacle they faced was Kuwait Finance House (KFH), the holder of the largest debt, which meant depriving the co-op from goods of 128 companies that are under the umbrella of KFH, in addition to the many complaints against the co-op due to the issuance of not-sufficientfunds (NSF) checks estimated at thousands of dinars by the previous board prompting banks to refuse supplying the co-op with checkbooks and to blacklist it. Ali added they were surprised that the supermarket is not licensed and most licenses of the investment stores are expired, while the co-op administration is not able to renew them.

Besides, warehouses are empty of goods and their value is KD 400,000 only. Ali said what made things worse is the over employment at around 270 employees, most of whom without productivity, at a monthly cost of KD 65,000. Meanwhile, Ali thanked social affairs and labor minister, Hind Al-Subaih, for her interest in the society’s situation and her attempt to remove obstacles and find solutions.

Saudi-Chevron Ahmadi municipality warned companies that have contracts with Saudi Chevron to move out within one week. The request came after oil production was stopped in Wafra field, then in Khafji. Meanwhile, Kuwait refused to issue licenses for Chevron workers.

By A Saleh


This article was published on 30/07/2015