DoC bid to regulate co-ops’ working
KATHMANDU, MAY 03 -
Amid concerns over cooperatives accumulating a huge amount of deposits, the Department of Cooperatives (DoC) has recommended the government to establish district cooperatives offices in 20 additional districts having 100-700 such financial institutions for proper monitoring.
The districts are Panchthar, Terhathum, Bhojpur, Okhadhunda, Ramechhap, Sindhuli, Sindhupalchowk, Lamjung, Gorkha, Parbat, Myagdi, Gulmi, Arghakhanchi, Pyuthan, Salyan, Dailekh, Achham, Bajhang, Dadeldhura and Jumla.
A four-member committee under DoC represented by the Ministry of Agriculture, Ministry of Finance and Ministry of General Administration also suggested that 64 monitoring officers be added in districts having more than 700 cooperatives. Lalitpur, Morang and Kavrepalanchwok fall in the category. The panel also advised opening a divisional office for two districts each having less than 100 such institutions.
Sudarshan Dhakal, registrar at the DoC, said they made such recommendations to make the monitoring and supervision of cooperatives effective. According to DoC, the country currently has more than 20,000 cooperatives and they have amassed deposits of around Rs 130 billion—20 percent of the total deposits in commercial banks. Cooperatives based in Kathmandu Valley alone have a deposit base of more than Rs 100 billion. In the absence of an all-powerful regulatory body like the Nepal Rastra Bank (NRB) to monitor cooperatives, there are fears that public deposits might be at risk. According to a DoC study, big cooperatives were found to have not maintained good governance, prompting the department to take some measures to address the concerns over the safety of public deposits. The DoC has made it mandatory that savings and credit cooperatives should submit their financial reports on monthly basis.
However, DoC admitted that it is struggling to implement this provision due to lack of adequate human resources. The committee, in its report, has suggested capacity building of DOC’s employees and appointing an additional 198 individuals in offices under the department. Currently, there are 594 employees under DoC.
The committee’s report has also suggested appointing under-secretary level officials to head offices in Kathmandu, Lalitpur, Kavrepalanchwok and Morang, as these districts have a large number of cooperatives.
Source: Kantipur
Amid concerns over cooperatives accumulating a huge amount of deposits, the Department of Cooperatives (DoC) has recommended the government to establish district cooperatives offices in 20 additional districts having 100-700 such financial institutions for proper monitoring.
The districts are Panchthar, Terhathum, Bhojpur, Okhadhunda, Ramechhap, Sindhuli, Sindhupalchowk, Lamjung, Gorkha, Parbat, Myagdi, Gulmi, Arghakhanchi, Pyuthan, Salyan, Dailekh, Achham, Bajhang, Dadeldhura and Jumla.
A four-member committee under DoC represented by the Ministry of Agriculture, Ministry of Finance and Ministry of General Administration also suggested that 64 monitoring officers be added in districts having more than 700 cooperatives. Lalitpur, Morang and Kavrepalanchwok fall in the category. The panel also advised opening a divisional office for two districts each having less than 100 such institutions.
Sudarshan Dhakal, registrar at the DoC, said they made such recommendations to make the monitoring and supervision of cooperatives effective. According to DoC, the country currently has more than 20,000 cooperatives and they have amassed deposits of around Rs 130 billion—20 percent of the total deposits in commercial banks. Cooperatives based in Kathmandu Valley alone have a deposit base of more than Rs 100 billion. In the absence of an all-powerful regulatory body like the Nepal Rastra Bank (NRB) to monitor cooperatives, there are fears that public deposits might be at risk. According to a DoC study, big cooperatives were found to have not maintained good governance, prompting the department to take some measures to address the concerns over the safety of public deposits. The DoC has made it mandatory that savings and credit cooperatives should submit their financial reports on monthly basis.
However, DoC admitted that it is struggling to implement this provision due to lack of adequate human resources. The committee, in its report, has suggested capacity building of DOC’s employees and appointing an additional 198 individuals in offices under the department. Currently, there are 594 employees under DoC.
The committee’s report has also suggested appointing under-secretary level officials to head offices in Kathmandu, Lalitpur, Kavrepalanchwok and Morang, as these districts have a large number of cooperatives.
Source: Kantipur
