The panel led by Dr Dinesh Chandra Devkota, vice-chairman of the National Planning Commission (NPC), is soon submitting its report to the government.[break]
“We are suggesting a host of measures, including establishment of a separate ministry to govern the sector,” Sudarshan Dhakal, registrar of Department of Cooperatives (DoC), told Republica.
The panel, which was constituted about one and a half years back, has also suggested formulating national policy to govern the sector, especially saving and credit cooperatives (SCCs) that are operational across the country.
A total of 22,646 cooperatives, including 10,500 SCCs, have been registered across the country, according to DoC.
“Taking growing scope of cooperatives into consideration, we´ve recommended that the government formulate short-term and long-term programs to cope with the new challenges and to conduct effective monitoring of this sector,” said Dhakal, who is also the member-secretary, of the team.
A government-sponsored study last year had found SCCs, especially the big ones, involved in financial irregularities, challenging existing cooperative norms and standards. It had prompted the Ministry of Finance to issues directives to DoC with new guidelines to regulate the SCCs. However, majority of the SCCs are still failing to adhere to the guideline that was expected to bring the SCCs back on track.
Realizing the lack of stringent laws to penalize wrongdoing cooperatives, the committee has also suggested amending existing laws and strengthening monitoring apparatus by developing DoC as an independent and all powerful agency to regulate the sector.
“We´ve suggested that the government enhance the monitoring capacity of DoC by providing necessary human resources and infrastructures,” said Dhakal.
The team has also recommended that the government convert state-controlled cooperatives into full-fledged cooperatives to lessen government control on them and develop DoC as a national academy for imparting cooperative related trainings and promoting cooperative spirit.
Five cooperatives, including Sajha Yatayat, Sajha Aushadi and Shajha Publications, are controlled by the government even though they are registered under the Cooperative Act.
Though the DoC has been demanding that the government expand its network to 58 districts from the existing 38, citing healthy rise in number of cooperatives across the country, the panel has suggested expanding DoC´s presence in all 75 districts.
A recent survey on Organization and Management (O&M) of DoC had suggested that the government raise the department´s workforce to around 800 from the existing 175.
“The panel has also suggested continuing the joint monitoring of cooperatives by the MoF, Nepal Rastra Bank and DoC until a mechanism of self-regulation by the cooperatives themselves is put in place.
According to conservative estimates, cooperatives across the country have mobilized deposits of over Rs 150 billion from general public.
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