Representatives of 29 troubled financial cooperatives have reported to the office of the high-level commission formed to launch an inquiry into problematic savings and credit cooperatives to avoid being dragged into police custody.
The commission, on February 5, had written to the Nepal Police Headquarters to round up chairpersons of 48 cooperatives who had failed to appear at the commission’s office despite being summoned to explain the reason behind their failure to return public’s deposits. The commission had asked the police to detain chiefs of those cooperatives suspecting their involvement in corruption and embezzlement of huge amounts at the units, which made them unable to return money parked by the public.
Since the commission officially started working in the first week of December, it has summoned chairpersons of 65 of 70 cooperatives declared troubled so far. In the initial phase, representatives of only 17 cooperatives, including Sudhir Basnet of Oriental Cooperatives and Rajendra Shakya of Guna Multipurpose Cooperatives, appeared at the commission’s office.
After the commission wrote to the Police Headquarters, representatives of another seven cooperatives appeared at the commission. “Recently, another five troubled cooperatives have sent their representatives,” chairman of the commission Gauri Bahadur Karki said.
After summoning representatives of cooperatives, the commission seeks clarification on why they failed to return depositors’ money. At that time, it also asks cooperatives to prepare a detailed reimbursement plan and submit it to the office, along with updated financial reports.
So far, the commission has declared 70 savings and credit, and multipurpose cooperatives as troubled. They were labelled as problematic based on over 13,000 complaints lodged by depositors, who failed to recover their money from these institutions.
source: the himalayan times,16 feb 2014
LINK
The commission, on February 5, had written to the Nepal Police Headquarters to round up chairpersons of 48 cooperatives who had failed to appear at the commission’s office despite being summoned to explain the reason behind their failure to return public’s deposits. The commission had asked the police to detain chiefs of those cooperatives suspecting their involvement in corruption and embezzlement of huge amounts at the units, which made them unable to return money parked by the public.
Since the commission officially started working in the first week of December, it has summoned chairpersons of 65 of 70 cooperatives declared troubled so far. In the initial phase, representatives of only 17 cooperatives, including Sudhir Basnet of Oriental Cooperatives and Rajendra Shakya of Guna Multipurpose Cooperatives, appeared at the commission’s office.
After the commission wrote to the Police Headquarters, representatives of another seven cooperatives appeared at the commission. “Recently, another five troubled cooperatives have sent their representatives,” chairman of the commission Gauri Bahadur Karki said.
After summoning representatives of cooperatives, the commission seeks clarification on why they failed to return depositors’ money. At that time, it also asks cooperatives to prepare a detailed reimbursement plan and submit it to the office, along with updated financial reports.
So far, the commission has declared 70 savings and credit, and multipurpose cooperatives as troubled. They were labelled as problematic based on over 13,000 complaints lodged by depositors, who failed to recover their money from these institutions.
source: the himalayan times,16 feb 2014
LINK
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