Kathmandu, 31 January: Chairman of the National Cooperative Regulatory Authority, Arjun Prasad Pokharel, has said that the foundation is being laid to lead cooperatives towards self-regulation.
In an interaction program organized in the capital with media persons and campaigners of cooperative campaigns after the Authority was duly established by amending the Cooperative Act, 2074 BS(2017) through an ordinance, he emphasized that cooperatives should self-regulate themselves as per the principle. Pokharel, who is also the Secretary of the Ministry of Land Management, Cooperatives and Poverty Alleviation, said that if cooperatives do not self-regulate, the Authority will take legal action and move forward with regulation.
He also informed that the Authority is setting the basis as it is not possible to self-regulate cooperatives in a vacuum. Chairman Pokhrel said that the Authority has moved forward with 15 decisions after taking the oath of office and holding its first meeting. He also informed that currently, more than 600 cooperative workers are in jail for misusing savers’ money and 1,500 cooperative campaigners have gone missing.
It is said that the Authority will also work to prepare a basis for returning the savings to those who have not received money after saving in cooperatives. Chairman Pokharel also said that the Authority’s main objective is to maintain good governance in the approximately 34,000 cooperatives under the jurisdiction of all three levels of government.
Omdevi Malla, President of the National Cooperative Federation Limited, said that crores of rupees of cooperatives were at risk due to the failure to form the Credit Information Center on time as per the provisions of the Cooperative Act, 2074 BS. She said that after the formation of the Credit Recovery Tribunal, the money sunk in cooperatives would start to be recovered.
Chandra Prasad Dhakal, Chairman of Nepal Savings and Credit Central Cooperative Association Limited (NEFSCUN), said that the issue of returning savings has not been mentioned in the ordinance that was issued to resolve the cooperative problem. He also said that since members and share members are mentioned differently, a definition of both is necessary. Chairman Dhakal also emphasized the need to differentiate between those who deal in savings and credit transactions and other cooperatives.
Uddhav Sapkota, president of Bagmati Province Savings and Credit Cooperative Association Nepal (PROSCU), stressed that the ordinance should be amended as it is not appropriate to specify boundaries based on the working area. He said that the provision that property owned in another district cannot be mortgaged is also not practical.
