Panel suggests end to dual executive system at YSESEF
KATHMANDU, JUL 29 - A committee formed to probe alleged irregularities and malfunctioning at Youth and Small Entrepreneur Self-Employment Fund (YSESEF) has suggested ending dual executive head system.
YSESEF Vice-chairman Punya Prasad Regmi and Executive Director Binod Guragain both have executive authority.
The probe committee headed by former banker Ram Krishna Pokharel concluded dual executive system invited confrontation between the two heads affecting regular work at YSESEF, a body formed to make available resources to the youths for self-employment.
The committee’s report, recently submitted to Finance Minister Ram Sharan Mahat, has also pointed out the fund’s failure to recover loans from cooperatives. The cooperative were provided with huge amounts before the investment directive came out.
YSESEF has been struggling to recover loans worth Rs 140 million from cooperatives, including Majdur Sahid Smriti, Himshikhar Saving and Credit Cooperative, Madhuwan Saving and Credit Cooperatives, all of them operated by Maoist leaders.
Maoist leaders Shiva Kattel is involved in Lalitpur-based Himshikhar, Chandra Bahadur Thapa “Sagar” in Gulmi-based Madhuwan, and Shalikram Jamarkattel in Majdur Sahid Smriti Cooperative. Himshikkar and Majdur Sahid had received Rs 50 million, each while Madhuwan had got Rs 18 million.
Jadibuti Cooperative and Himalaya Finance have also received money at the recommendation of the Maoist leaders.
“There should be recovery of loans as per the payment timeline,” states the report. A senior official of Finance Ministry, however, said the report could not specifically recommend about the loans at risk.
The report has also pointed out the fund does not have specialised human resources, and which must be addressed. It says YSESEF lacks specialised departments to deal with specific jobs, such as accounting, financial analysis, monitoring, among others.
With banks and financial institutions (BFIs) requiring to set aside a certain amount for youth self-employment programme as per the Nepal Rastra Bank’s (NRB) directive, YSESEF has maintained accounts in almost all BFIs. The report has raised question whether maintaining accounts in all BFIs is a good idea.
The probe committee, however, termed YSESEF’s objectives good, and stated the chairmanship of the Finance Minister shows high-level political commitment to the programme.
The committee also termed the channelling of funds through cooperatives and the provision of providing 60 percent interest subsidy to the beneficiaries “positive initiative”. According to YSESEF’s website, a total of 20,514 youths have so far benefited from the programme launched in 73 districts.
Source: The Kathmandu Post
