PORVORIM: Chief Minister Pramod Sawant has assured the Goa Legislative Assembly to launch a thorough inquiry into alleged irregularities across various Co-operative Credit Societies including the Visionary Urban Co-operative Society Ltd following complaints of frauds.
The CM conceded that irregularities into the functioning of the Society has been since 2007, while he also appealed to the people to deposit money only on being assured their money would be safe.
“People should be aware. If there is an FIR, people should refrain from depositing (in the concerned Society). I will order a thorough inquiry. We are seeking an amendment to the Act that will give powers to arrest the fraudster, because in absence of these powers (some) Co-operative Societies are indulging in frauds and later go scot-free,” he said while replying to a Calling Attention on Tuesday.
Congress MLA Aleixo Reginaldo Lourenco and NCP’s Churchill Alemao had jointly moved the motion raising apprehensions of the shareholders and depositors of various Co-operative Credit Societies and in particular the Visionary Urban Co-operative Society Ltd over the alleged fraud of Rs 39 crore. The legislators sought action to be taken against the Directors, Auditors by the Registrar of Co-operative Societies, who failed to detect the irregularity. They also sought action to prevent such scams in the future as well as the recovery process.
“It is important to recover the money of the depositors. The government should also find out where the money of the depositors vanished,” Alemao said as the House discussed the issue at length.
Lourenco has urged to resolve the crisis rather than indulging in ‘party politics.’ He also did not support the amendments to the Act apprehending it would result in loss of jobs of around 10,000 people.
The Opposition bench brought to the notice of the House that audits have not been carried out for several years leading to such scams. Leader of Opposition Digambar Kamat said that all Co-operative Societies are going through a bad phase.
The House also discussed that people are being attracted to Co-operative Societies to either evade tax or other purposes. CM Sawant and Minister for Co-operative Societies Govind Gaude urged the people not to fall prey until they are assured through independent inquiries that their money will be safe. “People want to be rich overnight. People should not chase for more money…. Nevertheless our focus will be on the recovery of the loss and Co-operative Societies that have been randomly giving out loans (without verification) will come under the scanner,” Gaude assured the House.
The minister further informed the Goa Legislative Assembly that Department Auditor during the years from 2007-08 to 2009-10 have reported various illegalities in the functioning of the Society whereby its funds have been found misappropriated/misutilised by the management and staff members of the Society. A First Information Report has also been filed in this connection.
In addition to this, directions are given to file a special report to the concerned Auditor for the year 2017-18. “The Auditor has pointed out various financial and functional irregularities and in order to verify in detail, a considerable amount of time is required to establish the quantum of misappropriation/misutilisation of funds of the Society and further action on the same will be initiated in due course of time as per the provisions of the law,” Gaude added.
Meanwhile, the State government thereafter introduced The Goa Co-operative Societies (Amendment) Bill, 2020 that seeks to omit fourth provision to sub section (6) of section 59 of the Goa Co-operative Societies Act, 2001. The amendment is sought to enable the Board of Directors of the Apex or Federal co-operative society who is the representative of the primary co-operative society to also enjoy managerial right in individual capacity over such a primary co-operative society.
