Only 723 of 1900 Cooperatives in Kathmandu Submit Annual Reports

March 21, Kathmandu – Approximately 1,900 cooperative organizations operate within Kathmandu Metropolitan City. However, nearly 50 percent of them fail to submit their annual reports regularly. This situation indicates underlying issues within the cooperatives. According to the cooperative department of Kathmandu Metropolitan City (KMC), only 723 cooperatives have submitted their annual reports on a regular basis.

According to Duvrukumar Kafle, head of the KMC cooperative department, the metropolitan office has repeatedly urged these cooperatives to submit their annual reports consistently. Cooperatives that have not submitted reports for an extended period, often citing various excuses, are preparing to face legal action. Kafle stated, “Some cooperatives do not maintain contact, while others involved in disciplinary action fail to submit reports. Additionally, cooperatives that unlawfully grant loans typically do not submit regular reports either.”

The metropolitan office has directed these cooperatives to immediately conduct their annual general meetings and submit the audit reports along with the general assembly decisions and annual reports to the KMC cooperative department. Kafle explained that for cooperatives that continue to neglect submitting general assembly reports, an investigation trap has been planned. To prevent misappropriation of depositors’ funds, the metropolitan office will first require submission of reports before proceeding with deregistration processes.

KMC has cautioned all depositors against falling for the temptation of high-interest returns, which could result in losing their savings. Kafle advised, “Before saving money, it is important to verify whether the cooperative operates according to its rules, whether audits are conducted, if the interest rates are reasonable, the transparency of the institution’s finances, and the oversight by regulators.” He added, “Do not deposit money in cooperatives run by acquaintances or relatives without due diligence, as it could lead to losses.” Currently, many cooperatives managed internally face financial management problems, and lack of legal enforcement has exacerbated these issues.