NCFN hails government move on co-operatives
KATHMANDU: National Co-operative Federation of Nepal (NCFN) has welcomed the inspection of cooperatives by the government in recent days.
“The government has inspected five cooperatives each in Lalitpur and Kathmandu,” it said adding that three cooperatives in Kavrepalanchowk are under inspection.
“However, we regret the negative publicity of the cooperatives,”
read a press release signed by NCFN executive chairman
Deepak Prakash Baskota.
“We welcome the regular inspection but regret the remarks of some officials of Ministry of Finance (MoF) against the co-operatives that have also contributed ton the society,” it said.
After the liquidity crunch in the market, cooperatives in urban areas are under the scanner. They are alleged to be involved in margin lending, real estate business and aggressive lending — putting the whole economic sector at risk.
“They will be regulated,” finance ministry officials said adding that some urban cooperatives are involved in activities against the co-operatives’ ethics and their activities will hit the complete cooperative movement in the country.
There are around 18,000 cooperatives in the country. “Thus the regulation of these co-operatives is necessary,” agreed NCFN also. “Some of the co-operatives may
be involved in activities against the cooperatives movement, so we urge the government for regular
inspection.” It has also urged
cooperatives to follow the norms and ethics of the cooperatives movement that can uplift the economy of the country.
Earlier, newly-appointed governor of the central bank Dr Yubaraj Khatiwada also promised to bring a regulation for the supervision and monitoring of cooperatives. “We are planning to form a regulatory authority to monitor and supervise the cooperatives,” he said during his welcome ceremony at NRB.