DoC summons directors of 15 troubled cooperatives

KATHMANDU, JUN 09 -

The Department of Cooperatives (DoC), through a public notice, has summoned board members of 15 troubled cooperatives along with their latest audited annual reports within a week. These cooperatives have been reported to have embezzled billions of rupees in public deposits.

Of the 15 cooperatives , nine are from Kathmandu and the rest from Lalitpur.

Kathmandu-based cooperatives are Oriental Saving and Credit,  Maitidevi; Exim Multipurpose, Thapathali; Muskilma Sajilo Multipurpose, New Baneshwor; Gaganchuli Saving and Credit, Gongabu; Pacific Saving and Investment, Kathmandu; Biswash Multipurpose, Maitidevi; Standard Saving and Credit, Putalisadak; Oracle Saving and Credit, New Baneshwor; and Kuber Saving and Credit, Maharajgunj. Similarly, Lalitpur-based cooperatives are Dip Shikha Saving and Credit, Manbhawan; Rasa Saving and Credit, Bisankhu Narayan; Anjuli Saving and Credit, Imadol; Sukunda Saving and Credit, Pulchok; Corona Saving and Credit, Kusunti; and Ugrachandi Saving and Credit, Mangal Bazaar.

According to the DoC, these cooperatives have remained shut and top officials are out of contact.   They have not been holding annual general meetings for the last three-four years and most of them have failed to repay depositors’ money for over a year.

Among others, Oriental has collected Rs 4 billion from over 7,000 depositors, Exim has collected Rs 470 million from 1,700 depositors and Oracle has collected Rs 150 million from 1,300 members. The department, which is also the secretariat of the high-level committee formed to scrutinise troubled cooperatives , issued the notice after the regulator failed to get sought details from the cooperatives . DoC Registrar Kedar Neupane said they were compelled to issue the notice after their efforts to contact the cooperatives ’ board members for the last six months went in vain.

The government had formed the eight-member committee under Nepal Rastra Bank Deputy Governor Maha Prasad Adhikari six months ago, which was mandated to investigate problems in these cooperatives . The DoC had identified 22 troubled cooperatives which will be probed. The DoC said they would initiate legal action against if the board members fail to show up by the deadline. “We will initiate auction of property owned by these cooperatives to repay depositors and will seek police action against them if they failed to respond within the deadline,” said Neupane, who is also a member of the committee.

Source: The Kathmandu Post