Cooperative Society Revealed to Have Granted Loans up to NPR 140 Million to a Single Individual

14 Jestha, Kathmandu – Data has emerged revealing that a cooperative society provided loans of up to NPR 140 million to a single individual. This information was obtained through a study conducted by the Cooperative Irregularity Investigation Commission. According to the commission’s findings, one cooperative disbursed loans totaling one crore rupees to an individual within a single day. Specifically, loans of NPR 49 million and NPR 51 million were extended through two separate transactions on the same day, the commission stated.

The commission’s report notes that more than 49% of board members have taken loans from the cooperative. ‘On the same day, loans of NPR 49 million and NPR 51 million were granted to a single individual, amounting to over one crore rupees in total loan investment,’ the report highlighted. Additionally, the commission pointed out that cooperatives, without maintaining adequate provisions in the loan loss reserve fund, declared profits and distributed dividends.

The commission also observed irregularities facilitated by cooperative directors through the use of software that maintains two separate sets of transaction records, making it easier to manipulate financial data. It further commented that, despite managing business worth billions, the cooperatives’ management often comprises individuals with only secondary-level education (SLC). Furthermore, officials tend to issue loans to their family members and close relatives, deepening systemic issues within the cooperative sector.

Following the commission’s monitoring and reporting, there is a legal provision for summoning cooperative officials for discussions and providing directives and suggestions. However, the commission revealed that the cooperative department often fails to respond or take action in such matters.