Monday, January 22, 2018

Government forms committee to rescue troubled cooperative

The Ministry of Cooperatives and Poverty Alleviation has formed a seven-member management committee – led by Gauri Bahadur Karki – to take over and manage the ‘troubled’ Oriental Cooperatives.
December 14 cabinet meeting had decided to form a committee.
Gauri Bahadur Karki led committee will have Kashi Nath Marasini, Gobinda Bahadur Malla, Dipak Prasad Poudel, Huma Kanta Panthi, Rewati Raman Pokharel and a representative recommended by the Federation of the National Cooperatives as members.
The committee – that has two-year tenure – will compensate the depositors, who lost their savings after the cooperatives went bankrupt around four years ago, said the ministry’s spokesperson Raghuram Bista.
The cooperatives went bankrupt after it disbursed haphazard loans and invested the deposits illegally in real-estate. The real-estate bubble bust sent the cooperatives into bankrupt.