Cooperative Sector Savings Decline by One Trillion in Eight Months; Lack of Reliability Evident in COPOMIS Data

A recent operational review reveals that total savings in the cooperative sector have decreased by nearly one trillion Nepali rupees, limiting the amount to NPR 1.029 trillion as of Falgun in the current fiscal year. The Cooperative Department and COPOMIS data inconsistencies have made it difficult for the commission to ascertain the official number and details of cooperative institutions. Alongside declines in savings and loan investments, the department noted a reduction of approximately 800,000 cooperative members over eight months.

June 29, Kathmandu – Total savings in the cooperative sector dropped by nearly NPR 100 billion by Falgun this fiscal year. As of last Ashad (mid-July), total savings stood at NPR 1.1 trillion but fell by roughly NPR 100 billion in eight months. The Cooperative Department reported that total savings at the end of Ashad of the previous fiscal year were NPR 1.125 trillion, while by the end of Falgun in the current fiscal year, it declined to NPR 1.029 trillion.

However, the reliability of data available in the Cooperative and Poverty-related Information System (COPOMIS) is diminishing. The commission examining irregularities in the cooperative sector clarified that COPOMIS does not provide dependable and credible data.

“About eight years have passed since the operation of COPOMIS began, yet it has failed to provide reliable and trustworthy data,” the commission’s report states. “If one relies on COPOMIS data, even the exact number of cooperative institutions cannot be confirmed.”

Officials highlighted discrepancies within the Cooperative Department’s provided figures as well. According to the department, the number of cooperatives registered by province each fiscal year totals 36,942. However, files submitted to various federal and provincial entities after federalism implementation indicate 34,710 cooperatives, while COPOMIS shows 41,187 as of fiscal year 2081/82.

The report concludes, “This shows there is no verified figure available for the number of cooperative institutions. It is necessary to manage data to ensure accuracy.”