Panel for separate ministry to oversee cooperatives

KATHMANDU, Sept 5: A government panel is recommending different measures including a separate ministry, cooperative policy and amendment to existing acts to effectively regulate savings and credit cooperatives. The panel has also suggested amending foreign aid policy to lure donors for the development of cooperatives.

Last December, the government had formed a high-level commission headed by Yuvaraj Khatiwada, then vice-chairman of the National Planning Commission (NPC). [break]

On the back of growing scope of cooperatives on the one side and increasing malpractice in the sector, Prime Minister Madhav Kumar Nepal had ordered formation of the panel to recommend measures within one month.

The committee was mandated to make policy recommendations, and procedural and structural changes for reforming the cooperatives sector. However, the panel delayed in presenting recommendations due to changes of members in the panel.

Then vice-chairman of NPC, Khatiwada, is now the governor of the Nepal Rastra Bank and then member secretary and registrar of the Department of Co-operatives (DoC) Maheshwar Prasad Sharma Poudel has already retired.

To speed up the process of drafting the recommendations, the high-level committee has formed a sub-committee led by Sudarshan Dhakal, registrar of DoC, with Bijaya Ghimire, vice chairman of National Cooperatives Federation, and Netra Neupane, member secretary of Cooperative Board of Nepal, as members.

Amend act to regulate savings and credit cooperatives

Set up separate ministry for cooperatives

To attract foreign aid for cooperatives

Promotion of cooperatives in crucial sectors

Separate cooperative policy

The sub-committee is going to submit its suggestions to the prime minister through the NPC.

Registrar Dhakal said the sub-committee is going to recommend formulation of a national cooperatives policy, amendment to existing acts and regulations for long-term development of cooperatives, separate act for facilitation in savings and credit mobilization by cooperatives and amendment to existing Cooperative Board Act.

According to him, promotion of cooperatives in crucial sectors such as agriculture market, tourism, school, transportation, insurance and health has also been recommended.

"We are also going to recommend measures to uplift the condition of cooperatives -- Sajha Sahakari, Sajha Prakashan and Sajha Yatayat -- which are in sick condition due to lack of proper policy and efficient management," Dhakal told myrepublica.com.

Dhakal said old agricultural cooperatives owe Rs 1 billion in loan to the Agricultural Development Bank.

In the recommendations, the panel has also called for appointment of qualified and competent persons in the government-run cooperatives.

The recommendations also include establishing a separate ministry to oversee the cooperatives sector, strengthening the structure of DoC and expanding to to various parts of the country, establishing cooperative training academy as well as building capacity of regional cooperative training centers and regional cooperative offices in the five development regions.

At present a total of six cooperative training centers are operating under DoC.

"To pave the way for foreign aid in cooperative development, we have also suggested amending foreign aid policy, which is still silent about foreign aid in the cooperative sector," Dhakal added.

He said German aid agency GTZ, Japanese International Cooperation Agency (JICA) and Finnish aid agency FINIDA have been showing interest to increase support though cooperatives.

The committee has also stressed the need for increasing government subsidy for cooperatives, which are supposed to generate employment in rural areas. Last year, the government had provided Rs 8.7 million in subsidies to open 36 cooperative-based enterprises.

prabhakar@myrepublica.com