Koperasi Jimat Cermat dan Pinjaman Mercantile is under investigation for alleged mismanagement and misappropriation of funds. These are believed to have contributed to its current losses estimated as much as RM100 million.

Last month, the Co-operative Development Department, which is handling the investigations, sacked the co-op chairman and secretary and suspended the board of directors.

Sources told The Malay Mail that unapproved purchases included seven Peugeot cars, parked in Langkawi for the exclusive use of some members visiting the island resort.

Other projects include the RM77 million Mutiara Holiday Resort in Teluk Kemang, Port Dickson, and the RM60 million Taman Musendra mixed development project in Airport City, Sepang.

The Taman Musendra project was to have 1,543 residential and commercial properties comprising 290 low-cost flats, 272 units of medium-cost apartments, 550 units of condominiums, 21 shop lots, 123 office lots and 21 bungalow plots.

It is learnt that the land in Sepang was purchased at seven times more than its market value.

The service apartment project in Teluk Kemang, which began in June 1995, was abandoned midway, while only earthworks were done for the Taman Musendra project.

The department is said to be trying to get a new contractor to complete the service apartment project.

The department is also investigating the purchase of five condominium units in Indonesia, purportedly for the use of members visiting the republic.