Clarifications Requested from Officials and Staff Acting Contrary to Cooperative Law
Based on the investigation commission’s report on irregularities in the cooperative sector, the Ministry of Land Management, Cooperatives, Federal Affairs, and General Administration has requested clarification within seven days from 14 former officials and employees. To implement the commission’s recommendations and conduct further study, the ministry has formed a five-member committee chaired by the head of the administration division. Minister Pratibha Rawal stated, “Work has begun on a concrete plan for structural reform in the cooperative sector in accordance with the report’s suggestions.” May 31, Kathmandu.
The Ministry of Land Management, Cooperatives, Federal Affairs, and General Administration has intensified its investigation into irregularities and malpractices in the cooperative sector. The Ministry indicated that it is executing the recommendations provided in the report submitted by the commission established as per the Nepal Government Cabinet decision to investigate irregularities within cooperatives in 2025 BS (2062/63 AD).
Following the Cabinet decision dated May 24, 2026 BS (June 7, 1969 AD), the ministry has sought explanations from former officials and employees who, according to the public report, violated cooperative principles, values, and laws in matters such as cooperative registration, scope expansion, approval of service centers and branch offices, and mergers. The report recommended investigating 14 former officials and staff members by name. Those asked for clarification range from branch officers to joint secretaries. The ministry has sent official letters instructing the concerned individuals to submit a written response within seven days, substantiating whether or not they performed according to the commission’s report. The ministry noted that if responses are not received within the prescribed timeframe, necessary action will be taken under applicable laws.
A committee has been formed for further study. To implement the commission’s report and conduct in-depth analysis, the ministry has established a five-member committee led by the Administration Division Chief. The committee includes directors from the Cooperative Regulation Authority, deputy secretaries from the ministry’s Legal Division, a deputy registrar from the Cooperative Department, and a deputy secretary from the ministry’s Cooperative Promotion Branch serving as the member secretary. The committee is tasked with thoroughly reviewing the commission’s report to develop both immediate and long-term reform suggestions, analyzing received clarifications, assisting in drafting the new Cooperative Act, and studying and analyzing files related to cooperatives as mentioned in the report. Minister Pratibha Rawal emphasized that the implementation of the report is being prioritized. She added, “We have already begun working on a solid plan for structural reform in the cooperative sector as per the report’s recommendations.”