Home minister Ramesh Lekhak faces crucial test as parliament pushes for action on cooperative fraud report

KATHMANDU, Sept 18: The report of the parliamentary special committee investigating the misuse of cooperative funds is now set to test Home Minister Ramesh Lekhak, who plays a crucial role in its implementation. Previously, as the chief whip of the Nepali Congress (NC) in opposition, Lekhak had called for the committee's formation. Now, as the home minister, he is responsible for executing the report through the Ministry of Home Affairs.

Once Parliament approves the report, it becomes enforceable by law, and the Ministry of Home Affairs must ensure its implementation. Ramesh Lekhak, known for his legal acumen, holds the trust of NC members. The NC, while in government, had set a precedent by investigating former home ministers and a deputy prime minister in the fake Bhutanese refugee scam.

NC leader Balkrishna Khand was arrested during the tenure of NC Vice President Purna Bahadur Khadka as deputy prime minister. NC members are now pressing to uphold this precedent. Among those recommended for action by the committee, led by MP Surya Thapa, is former Chairman of Gorkha Media Network GB Rai, who is currently absconding. Meanwhile, Managing Director Rabi Lamichhane claims to have received a 'clean chit.'

Although the report explicitly calls for action against him, Lamichhane, who chairs the Rastriya Swatantra Party (RSP), has been creating public confusion with his 'clean chit' claim. If enough evidence is provided, Lamichhane could face charges of forgery, fraud, and misuse of cooperative funds, as per the committee's recommendations. On Tuesday, he reiterated that there is no evidence against him. RSP members and MPs are also downplaying the committee's findings, asserting that Lamichhane has been exonerated.

Despite Lamichhane’s advocacy for good governance and anti-corruption, the committee's recommendation for action against him has placed him in a moral quandary. His insistence on receiving a 'clean chit' while confusing the public is seen as ethically questionable. GB Rai, also recommended for action, remains a fugitive, with an Interpol 'Diffusion Notice' issued against him.

The committee has proposed seizing the personal assets of cooperative operators and other involved parties to compensate the victims. Political leaders have stressed that the home minister has no option but to act on the report.

CPN-UML Central Committee Member Bishnu Rijal emphasized the need for swift implementation of the committee’s recommendations. "The recommendations must be executed as stated. There should be no deviation, particularly regarding Rabi Lamichhane," he stated.

The report suggests that if institutional assets fall short, personal assets should be used to make up for the loss. "The movable and immovable assets of the operators, involved individuals, their family members, and others should be freezed. If necessary, immovable assets should be converted into movable assets to return the depositors' funds," the committee recommended.

Due to the complete loss of funds invested in Gorkha Media Network, where Lamichhane was the managing director, legal provisions require the recovery of debts from the network's operators.

As the committee has directed the government to prepare an inventory of assets linked to illegal cooperative activities, Lamichhane cannot distance himself from the matter. The committee's financial analysis of 40 cooperatives revealed that Rs 87 billion are at risk. NC central member Ajay Babu Siwakoti has also called for the implementation of the report.

"Ramesh Lekhak was very vocal in advocating for the committee's formation. We trust that he will present the report to the Cabinet and ensure its implementation. Any delays or attempts to obstruct the process will not be forgiven, not just by NC members, but by the public. I am confident the home minister will take immediate action," Siwakoti said, urging the government to take the issue seriously.

On March 19, 2024, while serving as the NC’s chief whip, Lekhak called for the formation of a parliamentary committee for investigation. He warned that if the NC's demand was ignored, the party would continue to disrupt parliamentary proceedings. Consequently, the government formed the committee under MP Surya Thapa to investigate the cooperative fraud.

With the same committee now having submitted its report, Lekhak is in a position to act. Advocate Radhika Khatiwada emphasized that Lekhak should take responsibility. "The Home Ministry must act against all those implicated in cooperative fraud, not just in Lamichhane's case," she said, stressing that the report should be seen as a legal obligation.

The committee has recommended establishing a Cooperative Authority within three months. Until then, the government should use the audit report for the fiscal year ending mi-July 2024 as a basis for regulating and supervising cooperatives with assets over NPR 500 million or those engaged in financial transactions, in line with amendments to the Cooperative Act, 2074 BS, and the Nepal Rastra Bank Act, 2058 BS. The Nepal Rastra Bank must ensure regulation and supervision under the latter act. The CPN (Maoist Center) has long advocated for the formation of the authority, and the committee appears to have addressed this demand.