KATHMANDU, May 28: Public trust in Nepal’s cooperative sector has weakened due to financial irregularities, misuse of savings, and poor regulatory oversight, according to a government report.
The findings were included in the “Cooperative Irregularities Investigation Commission Report, 2026,” which highlights growing instability in the sector.
Depositors lose billions of rupees due to lack of effective reg...
The report states that although cooperatives are an important pillar of Nepal’s economy under the constitutional three-pillar economic model, recent financial misconduct and weak supervision have undermined public confidence.
It also found that many cooperatives were registered or expanded without proper feasibility studies, need assessments, or adherence to standards, leading to operational difficulties.
The commission noted that some operators and managers diverted funds for personal use, engaged in non-transparent transactions, and moved away from the core purpose of cooperatives.
Weak regulation, unchecked expansion, political influence, and poor governance have been identified as key causes of the current crisis. The report also points to a lack of coordination among regulatory bodies, weak information systems, financial indiscipline, and a shortage of skilled human resources as major challenges.
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