COOP arrears to be settled

Cabinet decision to dispense $50 million in reimbursement to stakeholders

The cabinet appointed an interim committee to manage the COOP of Lebanon through a decree issued on November 29. The decree empowered the interim committee to act with the prerogatives of the COOP’s Board of Directors.

The committee shall carry out a detailed review of the assets and liabilities of the COOP, prior to an extensive audit. The committee shall then conduct a judicial follow up on companies, or individuals, which the survey shows are involved in illicit activities, mainly pertaining to the contract with the United Company for Central Markets (UCCM).

The cabinet has recently approved the transfer of $50 million to the Ministry of Finance in order to dispense reimbursements to COOP shareholders.

The interim committee shall undertake negotiations with the COOP’s stakeholders and depositors in order to attain settlements on the reimbursement amounts. The settlements must be documented through contracts signed by the stakeholders, and by the committee, on behalf of the Ministry of Finance.

The committee includes seven members: Mohieddine Doughan (Chairman), Osmat Abdul Samad, Majed Majzoub, Salah Younes, Asaad Torbey, Samer Assi, and Nadine Nehme.

The COOP of Lebanon stores have been operating under the management of UCCM since late 1990s. UCCM is registered in Lebanon, but is majority-owned by Saudi Al-Muhaidib Group (AMG), which owns the Giant Stores chain of supermarkets in the Gulf.