Lawmakers call for amendment in Cooperatives Act to resolve problems

KATHMANDU: Parliamentarians have advocated for a revision of the Cooperatives Act to address issues within this sector.

During a meeting of the Agriculture, Cooperative and Natural Resources Committee under the House of Representatives on Sunday, the majority of committee members called for amendments to the Act.

Ashok Kumar Chaudhary stressed the need for legislative changes to tackle problems in the cooperative sector. He advised the government to educate people about the purpose and benefits of cooperatives, as well as to establish proper standards for regulating cooperatives.

Manbir Rai criticised the present government's inability to resolve issues in the cooperative sector, labelling it as immature.

Surya Prasad Dhakal, former committee member, suggested introducing a new rule that prevents more than one member from the same household from joining a cooperative.

Bir Bhadur Balayar expressed the view that lawmakers should not protect any erring cooperatives. He stressed the need for the Problematic Cooperatives Management Committee to be equipped with more human resources and for its members to be provided with security.

Committee Chairperson Arzu Rana Deuba proposed sending a letter to the Prime Minister to address issues in the cooperative sector. She opined that the problems facing cooperatives have become severe recently and that the government should not cover the losses incurred by bankrupt cooperatives.

Kashiraj Dahal, Chairperson of a Committee on Management of Problematic Cooperatives, stated that they were unable to achieve their goals due to a lack of human resources.

He revealed that out of the 31,000 cooperatives across the country, 500 are currently problematic. Dahal noted that while cooperatives initially performed well, they became problematic after investing in unproductive sectors.

Similarly, Gokarna Mani Duwadi, Secretary at the Ministry of Land Management, Cooperatives and Poverty Alleviation, stated that there was confusion over who would address the issues, which was hindering the resolution of problems in cooperatives.

"When attempts are made to take actions against fraudulent cooperatives, legal obstacles arise. The federal, provincial and local levels should classify cooperatives and intensify their monitoring. Contradictory Acts and laws should be discussed and clarified as soon as possible," he asserted.

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