KATHMANDU, July 7: The Office of the Problematic Cooperatives Management Committee has returned or settled a total of Rs 3.71 billion for victims of troubled cooperatives.
According to Committee Chair Shriman Kumar Gautam, a total of 61,094 depositors had filed complaints stating that their savings—amounting to Rs 38.42 billion—were embezzled, misused, or misappropriated.
Of this, Rs 34.71 billion still remains to be refunded. The committee, tasked with managing the assets and liabilities of cooperatives that violated the core principles and objectives of the cooperative system, has so far declared 23 cooperatives as troubled entities. Among them, three are currently in the process of returning funds and settling accounts.
Between mid-October and June 28, the committee proposed returning Rs 298.2 million to 56,106 depositors of various cooperatives. However, it was revealed at a press briefing that this amount represents only 41 to 57 percent of their original deposits.
The committee’s Member-Secretary, Keshav Prasad Paudel, said that based on the current assessment, it is highly unlikely that depositors will be able to recover the full amount of their misappropriated savings. He emphasized that the committee is making every possible effort to return the maximum amount to affected depositors.
The committee has the authority to take over ownership of troubled cooperatives and freeze the assets and business dealings of those responsible.
Member Kashi Chandra Baral stated that efforts to recover loans, sell assets, and return collected funds are being carried out in a planned manner.
Some of the cooperatives listed as problematic include Oriental Cooperative Ltd., Standards Saving and Credit Cooperative Ltd., Prabhu Saving and Credit Cooperative Ltd., Societal Saving and Credit Cooperative Ltd., Lunibha Multipurpose Cooperative Ltd., Pashupati Saving and Credit Cooperative Ltd., Shivshikhar Multipurpose Cooperative Ltd., and Tulasi Multipurpose Cooperative Ltd.
Additionally, 56,106 depositors are still awaiting refunds from several other cooperatives, including Hamro Naya Agriculture Cooperative, Krishi Bikas Multipurpose Cooperative, Kantipur Saving and Credit Cooperative, Laligurans Multipurpose Cooperative, Gautamshree Multipurpose Cooperative, Gorkha Saving and Credit Cooperative, and Nepal Cooperative Financial Institution.
Established in mid-December 2017 and active since July 2, 2018, the committee has been working under the federal government to implement strategic plans for the return of public savings from troubled cooperatives.