‘Savings Passbook Exists, But No Cooperative Institution’
According to reports, depositors from Hamro Pacific, Sandhya, and Prosper Savings and Credit Cooperative Societies have submitted requests to the National Cooperative Regulatory Authority (NCRA) for the refund of their savings. The authority stated that it has been unable to find any information about the addresses or management of these cooperatives and is unable to estimate the possibility of refunding the savings. Depositors from these three institutions have demanded refunds exceeding NPR 80 million, while the authority has recommended that the Ministry declare these institutions as problematic. (April 24, Kathmandu)
Depositors from Hamro Pacific, Sandhya, and Prosper Savings and Credit Cooperatives filed refund requests with the NCRA. Upon receiving the applications, the authority attempted to locate the cooperatives’ addresses and contact persons but could not find any precise address or clear information about their management, according to a senior official. “No clear information regarding the institutions or their management was available,” the official said.
The misuse of depositors’ savings by cooperative management and default in loans, leading to failure to refund deposits, has been a long-standing issue. However, in these three cases, a new form of fraud seems apparent. Former Secretary Gopinath Mainali commented, “There must be some records or details about these institutions that could be used as a basis for strict action to recover the depositors’ funds.” He added, “If the institutions are abandoned, simply leaving former executives or officials unaccountable will not resolve these problems.”
Mainali emphasized that passing directives alone will not suffice. Some of these cooperatives are not even registered, and it is unrealistic to expect deposits to be refunded by untraceable institutions. A few months ago, the NCRA recommended the Ministry of Land Management, Cooperatives and Poverty Alleviation declare 16 cooperatives as problematic. However, the ministry returned the recommendation, citing incomplete procedures and refusal to declare them as problematic.
According to the details sent by the authority to the ministry, four depositors of Hamro Pacific Savings and Credit Cooperative have requested refunds amounting to approximately NPR 4.98 million. Similarly, 48 depositors of Sandhya Savings and Credit Cooperative have requested NPR 29.86 million, while 130 depositors of Prosper Savings and Credit Cooperative have filed for refunds totaling NPR 51.45 million.