MANGALORE: The Board of Directors of Central Arecanut and Cocoa Marketing and Processing Cooperative Ltd. (CAMPCO), a cooperative society of Karnataka and Kerala, will meet here on Friday to discuss an agenda related to sending back its Managing Director (appointed by the Karnataka Government) and the Secretary (deputed by the Kerala Government).

The meeting assumes significance as both governments have resisted the move by CAMPCO as they are stakeholders in the organisation. The governments have contributed huge sums of money in the form of share capital, grants, subsidy and government guarantee for bank loans taken by CAMPCO. The governments are concerned who will safeguard their funds and the interests of other stakeholders if the two officials are removed and CAMPCO appoints a managing director on its own.

The general body meeting of CAMPCO held on September 30, 2004 resolved to remove both the Managing Director and the Secretary after amending bylaws 20 and 21. The amended bylaws enable its Board of Directors to appoint any permanent employee of CAMPCO as Managing Director or Chief Executive and appoint "its own'' Secretary, who will be an officer below the rank of Managing Director. The board, at a meeting on December 22, 2004, resolved to write to the Karnataka and Kerala governments to withdraw the Managing Director and the Secretary, respectively. At Friday's meeting, the board will discuss the course of action on the removal of two officials.

Official writes

The Additional Registrar (Consumers and Marketing), Department of Cooperation, Karnataka, in a letter to the CAMPCO President dated May 17, 2005, said his office will forward a proposal to the Karnataka Government on the withdrawal of the Managing Director only after CAMPCO pays back the Government's share and loan with interest.

Sources told The Hindu that the Principal Secretary of the department and the Registrar of Cooperative Societies, Karnataka, have told the Government that the Managing Director could be withdrawn only after CAMPCO clears its (Government's) liabilities.

A senior official in the Department of Cooperation, Kerala Government, told The Hindu on Thursday that the Kerala Government filed a review petition a few days ago before I. Satish Chander, Central Registrar of Cooperatives, Delhi, regarding CAMPCO's move to send back the Secretary as it will come in the way of protecting the interests of farmers in Kerala.

Sources said the outstanding share amount of the Karnataka Government with CAMPCO is Rs. 3.87 crores and that of the Kerala Government Rs. 3.25 crores. Besides, both the governments have stood guarantee for bank loans, extended subsidy and granted funds under other schemes.

Sources said the number of members in the CAMPCO Board of Directors is 19. Twelve of them are elected members — six members each from both States. Six members are nominated by the governments — four members from Karnataka and two from Kerala. The Managing Director is a member of the board. According to the recent amendment to CAMPCO bylaws, there will be one nominated member from Kerala and two nominated members from Karnataka.

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