Key Takeaways:
- Rs 1.7 million refunded to 42 depositors in first phase.
- Five troubled cooperatives owe Rs 22.38 billion to over 14,000 savers
- Online complaint system to launch July 17 for victims
The Bagmati Province government has begun refunding deposits to small savers of five cooperatives declared financially troubled, marking the first phase of relief for victims affected by Nepal's cooperative crisis.
Chief Minister Indra Bahadur Baniya formally launched the refund process on Tuesday by distributing nearly Rs 1.7 million to 42 depositors at the Bagmati Province Good Governance Centre in Jawalakhel.
The refunds cover small depositors of five crisis-hit cooperatives-Civil Savings and Credit Cooperative, Darshan Savings and Credit Cooperative, Sumeru Savings and Credit Cooperative, National Namobuddha Savings and Credit Cooperative, and Laligurans Savings and Credit Cooperative.
According to the Office of the Problematic Cooperative Management Committee, the five cooperatives owe a total of Rs 22.38 billion to 14,064 depositors.
Earlier, on June 5, the committee published the names of 114 major loan defaulters and directed them to immediately repay outstanding loans in a bid to recover funds for depositors.
Addressing the programme, Chief Minister Baniya said the provincial government was committed to ensuring justice for cooperative victims and warned that those responsible for misusing depositors' savings would face strict legal action.
He said the government was working to restore public confidence in the cooperative sector, adding that while cooperatives should serve as a foundation for people's economic prosperity, the misconduct of a few individuals had tarnished the sector's reputation.
Baniya also stressed the need to link cooperatives with production, employment and economic development, pledging support for well-managed cooperatives while maintaining strict oversight of institutions involved in irregularities.
Minister for Cooperatives and Poverty Alleviation Binu Rayamajhi said the provincial government will introduce an online complaint registration system from July 17 (Shrawan 1) to streamline the process of returning deposits to victims of troubled cooperatives.
