KATHMANDU, SEPTEMBER 14
The 'Cooperative Sector Reforms Recommendation Taskforce, 2023' has submitted its report, suggesting short-term, mid-term and long-term measures to address the challenges that have surfaced in the country's cooperative sector. The government had formed the taskforce on May 9.
The taskforce has recommended that if the loan amount exceeds more than 10 per cent of the total to an individual or household, it should be managed within six months. Likewise, board of directors, audit committee and management from the same household and close relatives should be disassociated within three months, stating that services would be affected by the conflict of interest of such individuals. The taskforce has also recommended that the transformation of investment of the cooperatives into different companies, marts and apartments should be managed into liquid property within a year.
Furthermore, the cooperative organisations which failed to pay back the depositors should pay them even by transforming other sectors' investment and fixed assets of the founders. The cooperatives should formulate their detailed plans of action on risk management and inform about it to their regulatory body and central association.
The study taskforce has suggested that the passports of the responsible office-bearers and those involved in the management body should be kept on hold if the depositors' collection was embezzled. The taskforce has also recommended the clearance of financial transaction, lending, saving and loan imbursement within the parallel organisations within a year. Frequent monitoring of the cooperative as well as feedback and reward and punishment have also been recommended by the taskforce.
The taskforce has concluded that shifting the investment by the cooperatives that are run by the family members towards real estate, apartment, stores and other companies has caused problem in the cooperative organisation at present.
Consultations and regular meetings among the board of directors and management team of the cooperative as well as regular information dissemination has also been suggested to ensure the transparency of the organisations.
National Planning Commission Member Dr Jaykant Raut led the taskforce with Secretary at the Ministry of Land Management, Cooperative and Poverty Alleviation Gokarna Mani Duwadi, Cooperatives Management Committee's Chairman Kashi Raj Dahal and others as its members.
A version of this article appears in the print on September 15, 2023, of The Himalayan Times.
