Cooperatives Act needs to be amended: Secy

KATHMANDU  । Secretary at the Minister for Cooperatives and Poverty Alleviation Suresh Man Shrestha on Friday said problems seen in the cooperatives were due to the Cooperatives Act 1992.
“The problem is aggravating as the Act has not been amended as per the changed context,” Shrestha said, speaking at an interaction jointly organized by Nepal Federation of Savings and Credit Cooperative Unions Ltd (NEFSCUN) and Cooperatives Journalists Society Nepal (CJN).
A high-level commission formed last year by the government had found 130 saving and credit cooperatives in troubled state. They had total liabilities amounting to Rs 10 billion — Rs 7.6 billion in deposits and Rs 2.4 billion in interest amount.
Shrestha said the government would intensify monitoring and supervision of cooperatives in the coming days for better management of rising number of cooperatives in the country.
“Though cooperatives have been doing remarkable works toward alleviating poverty and making contribution to the national economy, wrongdoings of some cooperatives is tarnishing the image of the entire cooperatives sector,” he said, adding, “So, the regulatory oversight would be increased in the coming days.”
Similarly, NEFSCUN Chairman Rishi Raj Ghimire said that self-discipline and self-regulation were the fundamental principles of the cooperatives sector. “Failure to abide by these principles can lead to deviation from the cooperative´s norms,” he said. He also demanded that the government introduce a separate financial cooperatives act to deal with saving and credit cooperatives.
According to NEFSCUNNN, 60 percent of around 30,000 cooperatives registered in the country provide financial services to their members.
Likewise, CJN president Dilli Sapkota said that cooperation and collaboration between cooperatives and media is needed for mutual benefit of both the sides.
by republica