Coops to promote good governance

KATHMANDU, FEB 13: 

Cooperatives involved in the savings and credit business have decided to promote good governance in the sector. The decision was taken today – the final day – of the Savings and Credit Cooperative Societies (SACCOS) Summit 2012. 

The summit has decided to promote good governance and democracy at the local level, said president of National Cooperative Federation of Nepal Keshav Badal. “Correction in current practices, expansion of cooperative services across the country and establishing it as the third pillar of economy, will be our focus,” he said. 

Two years back, the government had accepted cooperatives as the third pillar of the economy after the public and private sectors. However, the management of saving and credit cooperatives is not capable enough to compete with the other two sectors. 

The summit has accepted a 11-point declaration which focuses on reforms in savings and credit cooperatives. “Reforming cooperatives based on international principles will be our top agenda for the next two years,” said treasurer of Nepal Federation of Savings and Credit Cooperative Unions Deepak Thapa. 

According to Thapa, SACCOS has decided to invest among the poor and women to alleviate poverty in the country. “In the declaration, we have focused on developing transparency and accountability 

in the sector,” he said, adding that the summit highlighted the need for self-control and a strong internal auditing system among cooperatives. 

The summit has asked for a separate law to govern the sector as there are more than 11,000 cooperatives involved in the business. “We want new laws that will promote the sector, help regulate them and enhance their role in the national economy,” he added. 

According to the Department of Cooperatives, the cooperatives sector in the country has direct involvement with over three million people and contributes three per cent to the gross domestic production. 

The cooperatives sector has deposits worth Rs 110 billion and investments of Rs 97 billion in different sectors throughout the country. During the summit, participants discussed on 10 paper presentations on the cooperatives movement, their problems and prospects. There were 400 participants from 42 districts including international delegates at the summit.

Source: THT