Even 50 percent of cooperatives registered in the province do not submit annual reports
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Lumbini Province Cooperative Registration Officer's office has issued 19 point instructions after the increase in misappropriation of common fund saved in cooperatives. In Lumbini, more than two dozen cooperatives with provincial jurisdiction have embezzled more than one billion of general funds.
As the number of co-operatives where funds are embezzled and the situation of savers' money sinking is increasing, the Office of the Registration Officer has issued instructions to update the personal details, meetings, audits and financial details of the co-operatives in the Kopomis system. As of last July, there are 850 cooperatives registered and operating in the office of the Cooperative Registration Officer in Deukhuri, Lumbini Province. Among them, 400 cooperatives have not submitted their annual report. So far, 25 cooperatives of the state have filed a complaint in the office of the registration officer saying that they have embezzled funds.
Cooperative Registration Officer Suresh Chandra Acharya said that due to the lack of effective monitoring and non-compliance with cooperative laws and regulations, the situation is increasing, the public's trust in cooperatives is losing, and billions of public funds are being embezzled. In accordance with sub-section (1) of Section 77 of the Provincial Cooperative Act, 2076 and Rule 38 (e) of the Provincial Cooperative Regulations, 2076, every cooperative has been instructed to enter and update the personal details of all share members, the details of the members of the Board of Directors, the Audit Supervisory Committee and other sub-committees, and the details of savings collection and loan investment by the share members.
In the 19-point directive, it is asked to send monthly, quarterly and annual reports of meetings and decisions of the general meeting, board of directors, accounting supervision committee and other sub-committees through Kopomis system. Within three months of the end of the financial year, the overall statement of the association/institution is to be prepared and entered into the COPOMIS system, the auditor selected as decided by the annual general meeting must complete the audit before the end of October, all the cooperatives dealing in savings and loans are also instructed to analyze the indicators of Pearls and MCI and include them in the audit report.
Similarly, it has been asked to hold a general meeting only with the attendance of at least 51 percent of the shareholders following the procedure as mentioned in the Cooperative Act and Rules. If the quorum is not enough, the meeting should be adjourned and another general meeting should be held within 7 days in the presence of at least 33 percent of the members. It has been instructed to elect the Board of Directors and the Accounting Supervisory Committee within the time specified in the Cooperative Act Rules, and to submit to the office three copies of the statement with photographs of the Board of Directors, the Accounting Supervisory Committee and the manager.
Similarly, it has been instructed to implement the annual budget and program only after approval by the general meeting, to make the organization's income-expenditure, profit and loss, savings collection and loan investment reliable and transparent, using online-based software technology to audit the software as well. In order to organize the loan investment and recovery process of the organization, it has been instructed to classify the loans into 1 percent for good loans, 25 percent for bad loans, 50 percent for doubtful loans and 100 percent for bad loans.
The cooperative organizations have been instructed to keep the personal details of the employees working in the cooperative organization correct, to employ the employees only by providing them with appointment letters and clear job descriptions, and to return the amount of the protected capital return fund based on contributions and transactions without adding it to the share dividend in accordance with the law. If the amount in the Protected Capital Return Fund, Share Dividend Fund and Employee Bonus Fund cannot be spent in the relevant financial year in accordance with the prevailing laws and regulations, it has been instructed to transfer the amount to the reserve fund.
The financial information in Nepal Rastra Bank has been linked to the Go AML software of the unit and it has been instructed to submit the Border Transaction Report (TTR), Suspicious Transaction Report (STR) and Suspicious Activity Report (SAR) within the specified time and submit the same information to the Cooperative Registration Officer's office.
It has been directed that the cooperative societies registered and operating before 2076/77 should proceed with the process of rewriting the regulations so that they do not conflict with the provisions of the Provincial Cooperative Act, 2076, prepare the charter of services provided by all cooperative societies to their shareholders and keep them visible to all shareholders and provide services accordingly. Government of Nepal, National Cooperative Regulation Authority on May 9, 2082 It has been instructed to fully follow the issued regulatory standards, the instructions issued on 23rd June 2082 and the consolidated instructions issued on 32nd June 2082 by the Department of Agriculture, Cooperatives and Poverty Alleviation Cooperatives, Government of Nepal.
