Auditing of cooperative societies by external auditors required, HC told
The HinduMost cooperative societies in the State are dominated by political parties, making them vulnerable to corruption and favouritism, according to a report filed by the amicus curiae appointed by the High Court in a case relating to the Karuvannur Cooperative Bank case. While recommending independent, regular, and rigorous audits by external auditors, the amicus curiae pointed out that the administrative members are appointed based on political connections rather than merit, and these connections often are used as a shield for fraudulent activities. Loans are sanctioned to individuals or groups based on political connections rather than proper procedures or collateral requirements. The cooperative societies have become so politicised, and combined with lack of any oversight, they are a fertile ground for mismanagement and corruption.
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Political influence leaves cooperative societies vulnerable to corruption in Kerala: Report
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