Youth and Small Entrepreneurs Self-Employment Fund ( YSESEF ) has failed to disburse loans through banks and financial institutions (BFIS) adequately, while the credit disbursed through cooperatives have been misused.
This is what the recently-unveiled 51th Annual Report of the Office of Auditor Geneal (OAG) states.
Initially, efforts were made to mobilise the resources through BFIs to create self-employment, but a failure to do so forced the government to go through cooperatives. Besides, the fund’s lending to crisis-ridden Himalaya Finance has not been recovered. YSESEF had invested Rs 16.49 million in the company. It has requested the Prime Minister’s Office and the Nepal Rastra Bank to help recover the amount.
YSESEF Executive Director Binod Guragain admitted that the loan has not been recovered from Himalaya Finance, but he said the loan was sanctioned before his appointment as YSESEF ’s executive director.
The report has also given a few examples of how the loans provided through cooperatives were misused.
The OAG found loans worth Rs 3.49 million provided through four cooperatives in Mugu district were not utilised as per the YSESEF ’s objectives.
It has suggested withdrawal of the amount granted to the cooperatives.
Similarly, the Fund has also failed to recover Rs 45.55 million in non performing loans and interest from a cooperative based in Gulmi.
The cooperative was given Rs 18 million in two instalments as per the agreement signed on November 23, 2011.Guragain admitted to problems in loan recovery from some cooperatives, and said the fund would take action against them.He, however, said institutions like the Department of Cooperatives should properly monitor its licencees.
The report also said the loans have not been sanctioned as per the recommendation of the evaluation team, and the loans either exceeded or fell short of the recommended amount by Rs 500,000 to Rs 1.5 million.
The cooperatives that received loans in excess of the recommended amount have failed to pay interest timely.
“A few cooperatives were given huge amounts and the fund has been facing difficulties in recovering the loans,” according to the OAG report.
It also said YSESEF has failed to properly utilise recourses it revived from BFIs under the deprived sector lending. The central bank has told BFIs to lend one-third of their deprived sector lending through YSESEF .
Until last fiscal year, BFIs have lent Rs 3.83 billion to YSESEF , but the latter could only re-lend Rs 1.72 billion. This means 45.12 percent of amount received from BFIs has not been utilised.
“The fund’s failure to utilise the credit has resulted in poor people not being self-employed adequately,” states the report.
The fund’s lending through commercial banks has also remained poor, with just Rs 109.15 million being lent over the last five years, against an agreement with five banks for Rs 3.15 billion.
Nepal Bank Limited didn’t even take resources from YSESEF after signing the agreement.
source: the kathmandu post,18 april 2014
LINK
This is what the recently-unveiled 51th Annual Report of the Office of Auditor Geneal (OAG) states.
Initially, efforts were made to mobilise the resources through BFIs to create self-employment, but a failure to do so forced the government to go through cooperatives. Besides, the fund’s lending to crisis-ridden Himalaya Finance has not been recovered. YSESEF had invested Rs 16.49 million in the company. It has requested the Prime Minister’s Office and the Nepal Rastra Bank to help recover the amount.
YSESEF Executive Director Binod Guragain admitted that the loan has not been recovered from Himalaya Finance, but he said the loan was sanctioned before his appointment as YSESEF ’s executive director.
The report has also given a few examples of how the loans provided through cooperatives were misused.
The OAG found loans worth Rs 3.49 million provided through four cooperatives in Mugu district were not utilised as per the YSESEF ’s objectives.
It has suggested withdrawal of the amount granted to the cooperatives.
Similarly, the Fund has also failed to recover Rs 45.55 million in non performing loans and interest from a cooperative based in Gulmi.
The cooperative was given Rs 18 million in two instalments as per the agreement signed on November 23, 2011.Guragain admitted to problems in loan recovery from some cooperatives, and said the fund would take action against them.He, however, said institutions like the Department of Cooperatives should properly monitor its licencees.
The report also said the loans have not been sanctioned as per the recommendation of the evaluation team, and the loans either exceeded or fell short of the recommended amount by Rs 500,000 to Rs 1.5 million.
The cooperatives that received loans in excess of the recommended amount have failed to pay interest timely.
“A few cooperatives were given huge amounts and the fund has been facing difficulties in recovering the loans,” according to the OAG report.
It also said YSESEF has failed to properly utilise recourses it revived from BFIs under the deprived sector lending. The central bank has told BFIs to lend one-third of their deprived sector lending through YSESEF .
Until last fiscal year, BFIs have lent Rs 3.83 billion to YSESEF , but the latter could only re-lend Rs 1.72 billion. This means 45.12 percent of amount received from BFIs has not been utilised.
“The fund’s failure to utilise the credit has resulted in poor people not being self-employed adequately,” states the report.
The fund’s lending through commercial banks has also remained poor, with just Rs 109.15 million being lent over the last five years, against an agreement with five banks for Rs 3.15 billion.
Nepal Bank Limited didn’t even take resources from YSESEF after signing the agreement.
source: the kathmandu post,18 april 2014
LINK
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