Access Denied to Representatives of Civil Cooperative, Savers Left in Uncertainty

Loan borrower Lalkaji Gurung from Civil Cooperative has barred representatives appointed by the troubled cooperative management committee from entering the Civil Mall premises. Vishnu Prasad Ghimire, one of the representatives appointed by the committee, stated that they have been unable to work as the Civil Mall office has been locked. Following the Supreme Court’s interim order to maintain the property and liabilities of Civil Mall as they are, both savers and the management committee find themselves increasingly uncertain. July 27, Kathmandu.

Borrowers of Civil Cooperative have obstructed the investment recovery process undertaken by representatives appointed by the troubled cooperative management committee. Lalkaji Gurung, a director of Civil Mall and borrower of Civil Cooperative, blocked these representatives from entering the mall. After the Civil Savings and Loan Cooperative became problematic, the responsibility to manage assets and liabilities was given to the committee. The government amended the Cooperative Act to empower the committee to recover loans even from the relatives of borrowers who defaulted on their payments.

However, borrower Lalkaji Gurung has locked the Civil Mall office to prevent appointed representatives from gaining entry. The committee appointed two directors to Civil Mall, which holds 50 percent of the cooperative’s shares. Representatives Vishnu Prasad Ghimire and Ashanadhwaj Khadka, who arrived with appointment letters, reported that the office was locked and closed. ‘The committee appointed me and Ashanadhwaj Khadka as directors of Civil Mall,’ said Ghimire, ‘but upon arrival, other shareholders had already closed the office.’