Kathmandu. The commission formed to investigate the irregularities in the cooperatives has made public its report.
The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has concluded that weak regulation, political interference and non-transparent operation are the main reasons for the crisis in the cooperative sector.
The report states that the cooperatives were given permission for registration, expansion of scope and expansion of service centers and branches without adequate study and criteria. The report concluded that some directors deviated from the main purpose of the cooperative, misappropriated the money of the savers and carried out non-transparent transactions.
The report has identified lack of coordination among multiple regulatory bodies, lack of effective information system, financial indiscipline, poor governance and lack of skilled manpower as the main reasons for the problems in the cooperative sector. The Commission has concluded that the political affiliation of the cooperatives and managers and direct and indirect political interference have also contributed to the current crisis.
The Ministry of Land Management, Cooperatives and Poverty Alleviation has expressed commitment to reform the cooperative sector. The ministry has said that reforms have been carried out by making cooperative monitoring and regulation effective, amending the acts and rules and giving priority to the return of savings and loan recovery.
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