Co-ops seek high-level probe committee

KATHMANDU:

The cooperative sector has urged the government to form a probe committee to solve problems prevailing in the sector. National Cooperative Federation of Nepal — the umbrella organisation of cooperatives — has asked for a high-level committee to be formed to solve problems and promote principle-based practices.

Problems have been increasing among savings and credit cooperatives as they are not following cooperative principles, said president of the federation Keshav Badal. “Savings and credit cooperatives have been violating the values and norms of cooperatives, hence there have been problems,” he said, adding that such problems have not been seen in dairy, agriculture, vegetable and other cooperatives.

Savings and credit cooperatives had deposits of around Rs 148 billion till mid-April and had invested Rs 137 billion. Deposits of around Rs 20 billion of middle-class and poor people are at risk due to improper management and weak monitoring system. Those cooperatives that invested billions of rupees in land and housing projects are in problem.

The federation has asked all cooperatives to follow basic norms and values. Cooperatives are mired in unfair competition and have been investing in projects not owned by members, therefore there is a problem. It should be stopped immediately, the federation has stated in its press note.

Big cooperatives have been violating the legal requirements of timely auditing and general assembly. “All cooperatives must follow the legal process,” Badal pointed out.

According to law, cooperatives have to carry out audits and hold general assemblies every year. The federation

has demanded a strong monitoring mechanism to regulate big cooperatives.

Source: THT