The report pointed out that 71 billion 30 million 43 million rupees were embezzled by the savers only in the 40 institutions studied by the Centenary Investigation Special Committee.

According to the public report on Friday, the total assets of that organization, which has a share capital of 3.81 billion rupees, is about 13 billion rupees. Up to the period of the study, those organizations have kept about 2 billion in savings in banks and financial institutions and have given loans of 53.78 billion 51 million. During the same period, the total investment of those cooperatives is more than 3 billion.  The

committee studied the cooperatives by classifying them into three categories: declared problematic, publicly questioned (related to Gurkha media network) and others. Supreme, Sahara, Suryadarshan, Samana, Swarnalakshmi and Sano Paila Cooperatives, which have been publicly questioned, have not been able to return the savings of Rs 6.32 billion. The committee concluded that an amount of 655.4 million was embezzled from that cooperative to Gorkha Media Network. The

committee has recommended action against Gorkha Media chairman Gitendrababu (GB) Rai, the then managing director and RSVP chairman Ravi Lamichhane and directors Chabilal Joshi and Kumar Ramtel in misappropriation of cooperative savings. Rai is absconding while Ramtel is in Pokhara jail pending trial. But the investigation on Lamichhane was blocked because he was the Home Minister. The complaints filed by the savers and the metropolis were also denied by the police and the investigation report prepared by the CIB was also hidden. The then head of CIB, Shyam Gyawali, appeared before the parliamentary committee and claimed that CIB had not conducted such an investigation. However, the committee has also included the report of the CIB.

"Funds were regularly flowing to Gorkha Media Network Pvt. from cooperative organizations including Suryadarshan of Pokhara and Supreme of Butwal, but no one came to know about the act against the law," the report said, "others remained unaware." The operators of Gorkha Media Network during the inquiry said that even they did not know that the money was flowing from the cooperative. The directors with share ownership of the company should be explained on the basis of the prevailing legal provisions regarding the liability of the company's funds.

Similarly, 22 cooperatives declared problematic by the government have yet to return the savings of 42 billion 817 million rupees. According to the report, one or two individuals have taken loans of up to 1.35 billion rupees from the troubled cooperatives. It is mentioned in the report that if repayment is made from the assets of such people, some problems will be solved. In some, the same person has been the president of the cooperative for 20/25 years. It has also been found that the same person has borrowed up to 29 times without repaying the previous loan. It is mentioned in the report that those who take the cooperative's savings and invest in the names and companies of their brothers, family members, people they like.

'They have taken loans up to 88/89 crores in a single company. The principle of a cooperative does not allow such work to be done. Although prohibited by law, the money of the cooperative has been invested in the company. Private wealth has been acquired from the cooperative's money. However, according to the law, such property has been taken and kept in the name of people who are not known," Surya Bahadur Thapa, chairman of the committee, said, "When saving more than 1 million, the source must be disclosed. However, crores-crores of resources have been kept in the open. The report has pointed out that 12 other troubled institutions under the mandate of the

committee have embezzled 22 billion 164 million rupees of savers without returning them. There are 753 local level, 7 provinces and 1 cooperative department in regulating cooperatives and 761 regulatory bodies. Everyone registers, they also regulate. But the details are not updated with any regulatory body. The report pointed out that even though there is occasional surveillance, it is carried out in a mysterious manner.

Although there is no problem in cooperatives operating in rural areas, the committee has concluded that a large amount of savings has been embezzled due to corruption in urban cooperatives. Due to financial problems in more than 500 cooperative organizations across the country, the victims complain that billions of rupees have not been returned to the savers. 

'The main problem seen now is in the (satellite) cooperatives that are opened in a frivolous manner and look like banks, the operators of the cooperatives are not from that community, the small and daily savers are not their target, except for a few exceptions, such cooperatives are basically in trouble,' the report states. , 'Cooperatives became like banking institutions rather than financial businesses based on cooperation. The report also mentions that there is a problem in the same organization because the cooperative has been made a business of collecting savers' savings and using it for personal gain to defraud.

It seems that the major factor in the current problem in the cooperative sector is the lack of self-discipline among the cooperative operators themselves. In addition to that, the entire social system, including the government, regulatory bodies and irresponsible saver members, are responsible according to their role in this overall process,' the report says, 'cooperatives have deviated from the basic purpose and principles of cooperatives, collecting large amounts of savings from non-members, keeping periodic savings, non-members. And when the actions of investing against the law in unnatural persons, including investing in land and shares, the co-operative sector has been hit by the innocuous law that cannot regulate such co-operatives.' 

During the drafting of the Cooperative Act, 2074, the legislature has removed some of the proposed regulatory provisions and some have been relaxed, the report concluded that there is now a problem in this area. "On the one hand, there is a situation where there is a complaint that the regulatory body has no other rights except to impose a maximum fine of 5 lakh rupees and to declare it problematic," the report said, "Thus, the regulation of the cooperative sector has become directionless and has reached its current state." The operating style within cooperatives is member-centered and member-controlled, it should be, but being 100 percent open and loose from state regulation and control does not guide the future of the cooperative sector. It is clear that the future is not safe.' 

It is mentioned in the report that in the decision to expand the service centers of most of the cooperative organizations that have been declared problematic, the discretionary powers of the registrar of the cooperative department have been used uncontrollably. Based on a single decision of the registrar, service centers have been expanded to 35 districts of the cooperative on the same day. With the decision of the registrar, more than a dozen cooperatives have expanded their service centers across Nepal. This type of uncontrolled service expansion has pushed cooperatives into financial crisis,' the report states. 

It seems that the discretionary right has been misused in the approval process of the merger and consolidation of cooperatives. The committee concludes that the problem has arisen because of the arbitrary decision based on the recommendation of the limited director without the approval and consent of the members of the cooperative without integration according to cooperative values ​​and principles.