Most of the troubled cooperatives have their chairmen in executive position against the norms, according to the Department of Cooperatives (DEoC).
Of the 130 cooperatives against which complaints have been filed with a high-level commission formed to investigate troubled cooperatives , “more than 90 percent have executive chairmen”, said DEoC Registrar Kedar Neupane. He said most of these executives were also taking hefty salaries and other benefits, pushing the cooperatives into crisis.
Some of the executives were found to have been taking more than Rs 150,000 in monthly salaries, besides other benefits such as meeting allowance.
“Most of them have not abided by the minimum norms of the cooperatives principles,” Neupane said.
According to the DEoC standard, salaries of chief executives have to be approved by the annual general meeting (AGM), but most of the executives have fixed their salaries and benefits themselves. They even failed to invite all the members at the AGM. The executives also showed faulty audit report to government authorities, according to Neupane.
Increasing problems in the sector have been attributed to the lack of a strong legal measure to punish those violating the norms. The department has failed to issue clear directives to discourage high executive salaries without AGM approval.
Although the DEoC directives talk about fixing the spread and not allowing chairmen to hold executive positions, the regulatory body has failed to implement its own directives.
Executive directors of the cooperatives have also been found to have invested deposits in the realty sectors on the basis of their individual decision. “Even though the cooperatives have to work for fulfilling the interest of their members, the executives focused only on their personal benefits,” said a DEoC official.
The department, however, said it has intensified inspection. “Following the department’s move, a number of cooperatives have started appointing legal advisors to find a way out of the possible legal hassles,” the official said.
The investigation commission formed by the Ministry of Cooperatives and Poverty Alleviation has been assessing more than 12,000 complaints against 130 cooperatives . The total liabilities to be paid to the depositors by these cooperatives amount to Rs 9.63 billion, including Rs 7.25 billion in deposits.
Of the complaints, more than 11,000 are against Oriental Cooperative, which has allegedly misappropriated over Rs 6 billion.
The commission has also received a significant number of complaints against other big cooperatives like Guna, Exim, Shuva Shree, Standard and Prabhu.
The commission has also been accessing the complaints against housing projects run by the cooperatives . Out of 130 troubled cooperatives , operators of only 35 cooperatives have forwarded their plans to pay back the depositors’ money.
source: the kathmandu post,20 march 2014
LINK
Of the 130 cooperatives against which complaints have been filed with a high-level commission formed to investigate troubled cooperatives , “more than 90 percent have executive chairmen”, said DEoC Registrar Kedar Neupane. He said most of these executives were also taking hefty salaries and other benefits, pushing the cooperatives into crisis.
Some of the executives were found to have been taking more than Rs 150,000 in monthly salaries, besides other benefits such as meeting allowance.
“Most of them have not abided by the minimum norms of the cooperatives principles,” Neupane said.
According to the DEoC standard, salaries of chief executives have to be approved by the annual general meeting (AGM), but most of the executives have fixed their salaries and benefits themselves. They even failed to invite all the members at the AGM. The executives also showed faulty audit report to government authorities, according to Neupane.
Increasing problems in the sector have been attributed to the lack of a strong legal measure to punish those violating the norms. The department has failed to issue clear directives to discourage high executive salaries without AGM approval.
Although the DEoC directives talk about fixing the spread and not allowing chairmen to hold executive positions, the regulatory body has failed to implement its own directives.
Executive directors of the cooperatives have also been found to have invested deposits in the realty sectors on the basis of their individual decision. “Even though the cooperatives have to work for fulfilling the interest of their members, the executives focused only on their personal benefits,” said a DEoC official.
The department, however, said it has intensified inspection. “Following the department’s move, a number of cooperatives have started appointing legal advisors to find a way out of the possible legal hassles,” the official said.
The investigation commission formed by the Ministry of Cooperatives and Poverty Alleviation has been assessing more than 12,000 complaints against 130 cooperatives . The total liabilities to be paid to the depositors by these cooperatives amount to Rs 9.63 billion, including Rs 7.25 billion in deposits.
Of the complaints, more than 11,000 are against Oriental Cooperative, which has allegedly misappropriated over Rs 6 billion.
The commission has also received a significant number of complaints against other big cooperatives like Guna, Exim, Shuva Shree, Standard and Prabhu.
The commission has also been accessing the complaints against housing projects run by the cooperatives . Out of 130 troubled cooperatives , operators of only 35 cooperatives have forwarded their plans to pay back the depositors’ money.
source: the kathmandu post,20 march 2014
LINK
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