The government has decided to revamp the audit system for cooperative banks and strengthen the vigilance mechanism to prevent financial irregularities. Minister for Cooperation V.N.Vasavan said here on Thursday that the revised audit mechanism was aimed at preventing scams such as the one at the Karuvannur Service Cooperative Bank in Thrissur.
Mr. Vasavan, who held an online discussion with presidents of cooperative banks, said the government would work out a package to ensure that investors in the Karuvannur bank would not lose their money.
The new system
Outlining the revamped audit system, he said the Chief Secretary had requested the Accountant General to release the services of officers in the rank of Deputy Accountant General for the audit of cooperative banks. These officers would be assisted by officials in the Cooperation Department.
The vigilance set up would be strengthened by appointing officers in the rank of SP as regional vigilance officer. Mr. Vasavan said the new system would ensure timely inspections and action to thwart any irregularity.
The audit of cooperative banks would be carried out by a three-member team led by a Deputy Accountant General. A cooperative audit monitoring information system would also be put in place and the online platforms of primary agricultural cooperative societies would be integrated, Mr. Vasavan said.
Prompt action
He said the government had taken prompt action in the case of the Karuvannur Cooperative Bank. “The governing committee was disbanded and efforts are on to bring all the culprits to book”.
The meeting also decided to streamline the Vidyatharangini loan scheme to provide interest-free loans for children to purchase digital equipment for online classes.
In a pressnote issued later, Mr. Vasavan said 25 cooperative societies for youth would be set up within two weeks under the Chief Minister’s 100-day programme. Societies for paddy farmers had already started functioning and societies for artists would soon become operational, the pressnote added.
