Mismanagement and increasing losses’ have pushed the Kerala State Cooperative Consumers’ Federation (Consumerfed) into a serious crisis, reports Hindu. .
A white paper prepared by its Managing Director said the accumulated losses touched Rs.1,052.49 crore against its net asset value of Rs.545.62 crore. The federation straying into new domains without expertise cost it dear and the future of 1,720 employees stood threatened. The losses had been soaring, from Rs.7,931.82 lakh in 2007-08 to Rs.16,023.73 lakh in 2013-14.
Apart from mismanagement, including shoddy accounting and maintenance of records, the white paper mentioned several ventures launched by the federation came to grief. The Nanma scheme for selling 10 essential commodities at 20 per cent below market rate through Nanma Stores, was a case in point, the report said.
The Triveni Institute of Pharmacy, set up in Thrissur, for about Rs.12 crore without government recognition or financial aid, failed to take off as expected. This amounted to duplication of the functions of the Cooperative Academy for Professional Education, the paper said.
A loan of Rs.25 crore taken from the Thrissur District Cooperative Bank for setting up a high-security printing press was diverted as working fund at the head office and the loan had not been repaid, the paper mentioned.
