NewBiz Report
KATHMANDU, August 13

The owners of problematic cooperatives have requested additional time to return the savings of the general public. 

During an inquiry by the parliamentary special committee investigating the misappropriation of cooperative funds, they explained that repaying the savings depends on recovering outstanding loans and investments, which will require more time.

The committee has started questioning the directors of cooperatives that have failed to return public savings.

Committee chairman Surya Thapa said that they have been interrogating owners currently in jail for cooperative fraud as well. 

On Saturday, the committee questioned CB Lama, Chairman of Pashupati Multi-Purpose Cooperative and former chairman of Kantipur Savings and Credit Cooperative.

On Sunday, Nunam Subba, Chairman of Civic Development Cooperative; Kedarnath Sharma, Chairman of Tulasi Multipurpose Cooperative Limited, and Kedarnath’s wife Geeta Sharma were interrogated.

The committee also questioned Hemraj Dahal, former Chairman of Sumeru Savings and Credit Cooperative in Pulchowk, alongside current Chairman Krishna Prasad Kandel, proposed Chairman Birendra Maharjan, and collected a statement from Raj Bahadur Singh, a shareholder of Sumeru Savings and Credit Cooperative on Sunday.

Similarly, former Civil Savings and Credit Cooperative Society Limited Chairman Ichcharaj Tamang, National Cooperative Bank Limited (NCBL) chairman KB Upreti, and Kantipur Savings and Credit Cooperative director Himalaya Bikram Malla Thakuri were questioned on Monday.

Most of them blamed liquidity issues in cooperatives for their inability to return funds.

The directors said that inability to recover their investment in real estate and other business, and poor loan recovery made them unable to return the people’s savings, according to Committee Chairman Thapa.

The committee is set to interrogate the directors of twenty-nine cooperatives and twenty-six individuals accused in the ongoing investigation.

Last week, following a discussion with Home Minister Ramesh Lekhak, the committee directed that a dozen and a half people, who are currently evading arrest and are involved in savings misappropriation, embezzlement, and fraud, be brought before them.

The National Cooperative Federation of Nepal (NCF), which oversees cooperatives across Nepal,  has also called on Prime Minister KP Sharma Oli to address current issues within the cooperative sector.

On Monday, a delegation from NCF led by its President Om Devi Malla urged the PM Oli to prioritise the establishment of a credit information centre, a debt recovery tribunal, and a savings and credit protection fund as outlined in the Cooperative Act, 2074.

The delegation also called on the government to offer concessional loans to cooperatives, prioritise data collection, and enhance regulation, monitoring, and promotion of the cooperatives.

Malla claimed the misinformation that loans from cooperatives do not need to be repaid brought the issue from the street to Parliament, worsening it further.

She called for changes to around 47 laws that are hindering the effective use of cooperative capital in the productive sector.

Former minister and former federation chairman Keshav Badal suggested that the Prime Minister, Finance Minister, and Minister of Land Management, Cooperatives, and Poverty Alleviation should hold a serious discussion to find solve the cooperative issue.