Probe panel seizes Oriental’s documents

KATHMANDU, APR 21 -

A high-level probe commission formed to investigate troubled cooperatives on Sunday seized financial documents of Oriental Savings and Credit Cooperative from its Maitidevi-based head office after its chairman Sudhir Basnet did not submit the papers despite repeated requests.

Of the total 12,778 complaints registered against troubled cooperatives with the commission, 11,286 complaints are against Oriental. And, out of more than Rs 9.63 billion liabilities of 130 troubled cooperatives, Oriental alone has liabilities worth more than Rs 6 billion.

A team led by Kathmandu Division Cooperative chief Balaram Niraula, auditor Sagar Sigdel, advocate Keshab Gautam and a group of depositors, among others, seized two computer servers and documents from the office, according to the commission. This is the first time the commission has raided a troubled cooperative.

The commission said although Basnet was in regular contact, he was showing no urgency to submit the financial documents. “We were compelled to raid Oriental’s office after Basnet failed to come in contact for the last two weeks,” said the commission’s member Sushil Ram Mathema.

He said the commission seized the documents just to study its financial transactions. “We will investigate the assets and liabilities situation, credit, balance sheet and memorandums of understanding Basnet signed with buyers of his housing projects,” Mathema said.

Ever since the commission started its work, Basnet has been expressing commitment to complete his housing projects and use the revenue to pay his liabilities. He has started construction work on Imadol-based Vegas City, Sanepa-based Sanepa Housing, and Naxal-based Imperial Housing.

According to a report of the commission, Basnet has assured that he would pay Rs 1.50 billion earned after selling his housing projects through a bank account maintained by the commission.

Basnet has also committed to carry out Due Diligence Audit of all his transactions. Last year, he assured thousands of Oriental depositors that he would pay back their money. “However, neither he took initiatives to fulfil his commitments nor did he cooperate with the commission,” said Mathema.

Source: The Kathmandu Post