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The cooperative sector of the country has been overwhelmed by fraudulent activities like fake marriages, property transfers and divorces. What’s more, cooperative institutions have been found to prepare fake audit reports and create fictitious creditors and shareholders.

The report prepared by the Parliamentary Special Investigation Committee on Misappropriation of Cooperative Savings reveals various malpractices and illegal activities in the cooperative sector. Among the 40 cooperatives under the committee’s scanner, 22 were declared problematic, while questions have been raised about the governance of 18 others. Six of these cooperatives have transactional links with the Gorkha Media Network.

GB Rai’s role

Gitendra Babu (GB) Rai from Okhaldhunga operated seven cooperatives across the country. He exercised sole decision-making authority in all of them. Some of these institutions were new, while others had merged with existing cooperatives. 

GB misappropriated nearly Rs 8.84bn in deposits from these cooperatives. Funds were misappropriated from Supreme Savings and Credit Cooperatives in Butwal, Sahara in Chitwan, Suryadarshan in Pokhara, Samanata in Banke, Swarnalaxmi in Kathmandu, Sanopaila in Birgunj and Hamro Naya Krishi Cooperative.

Chartered flight for spouse 

GB remains under intense public scrutiny, yet police have not been able to arrest and investigate him. According to the committee’s report, GB chartered helicopters using cooperative deposits to celebrate his wife’s birthday in exotic locations like the Everest Base Camp.

“This is an example of how they misused the depositors’ money,” said committee chair Surya Thapa. “We found various types of misuse of cooperative funds during our investigation.”

The top defaulter  

Shivashikhar Multipurpose Cooperative Limited in Kaushaltar, Bhaktapur, tops the list of cooperatives in terms of misappropriation of deposits. The cooperative now has a total liability of Rs 10.91bn, according to the report. This comprises savings, interest due on savings and various tax obligations to the state.

Shivaashikhar was formed through a merger of Shivashikhar Agriculture Cooperative with Shikhardeep Multipurpose Cooperative some five years ago. Kedar Nath Sharma was the chairperson of both institutions prior to the merger.

Per the report, the cooperative had mobilized savings without proper asset and liability management, resulting in a significant imbalance between assets and liabilities.

According to cooperative regulations, members cannot get new loans till the repayment of initial loans. However, Shivshikhar repeatedly disbursed Rs 674.2m to 24 members through 72 loans.

Other cooperatives that misappropriated billions include Sri Laligurans, Agriculture Development, and Sumeru of Lalitpur; Kantipur, Gorkha, Swarnalaxmi, Oriental, Capital, Gautam Shree, Jestha and Kumari of Kathmandu; and Ideal and Sanopaila of Birgunj.

These cooperatives owe Rs 634.2m in various taxes to the government and Rs 1.38bn in interest to depositors for their savings.

A silver bullet?

Committee chair Thapa has a simple solution to the crisis: the implementation of the committeé’s recommendations.

Since 1967, various state-commissioned committees, commissions, study teams and special committees have ‘studied’ cooperative institutions and submitted their reports to responsible authorities, but their recommendations have largely gone unimplemented. 

This parliamentary special investigation committee is the 13th such committee and the first first committee formed by the parliament whose recommendations were passed unanimously and submitted to the government for implementation.

Submitted in mid-September, the committee’s report has recommended establishing a cooperative authority within three months and, until then, supervising cooperatives with total assets exceeding Rs 500m under the Cooperative Act and Nepal Rastra Bank Act (amended March 2024).

The committee has recommended conducting audits of cooperatives by auditors registered with the Cooperative Authority and classifying cooperatives into A, B and C categories based on capital and financial mobilization capacity for regulation. It has also suggested dissolving the National Cooperative Development Board and Cooperative Department after the establishment of the Cooperative Authority.

Warning of protests 

Meanwhile, Kushalabh KC, central chairperson of the Cooperative Depositors Victim Protection National Campaign, has accused the government of taking no action on cooperative victims’ demands. “No matter how much we shouted, the government didn't listen. We are preparing for decisive street protests on Dec 20,” he said. “No one will return home until concrete decisions are made.”

He said the government hasn’t implemented written agreements made repeatedly.

Kiran Shrestha, chairperson of the Suryadarshan Savings Victims’ Struggle Committee, accused the government of not taking concrete steps to return the depositors’ money. “The government seems occupied only with arrests, actions and controlling protests with no discussion on returning the savings.” 

According to Shrestha, 1,050 people have filed complaints seeking the return of their deposits parked in Pokhara-based Suryadarshan Cooperatives alone.

In response to the concerns about the gobbling up of the depositors’ funds, Minister for Land Management, Cooperatives, and Poverty Alleviation Balram Adhikari said that preparations are afoot to establish a cooperative authority as per the parliamentary committee’s recommendations. “Work has not gained momentum because there is a lack of clarity on whether the authority will be under the central bank or the government,” he added.

Singapore’s Aditya Birla Global Trading Pvt Ltd has been awarded a contract by Krishi Samagri Company Limited to supply 25,000 tonnes of DAP fertilizer to Nepal. The contract is valued at approximately Rs 2.56bn. Aditya Birla Global Trading Pvt Ltd will deliver the fertilizer to the locations of Birgunj, Biratnagar, and Bhairahawa.

As of Oct 15, 155,689 tons of fertilizer have been imported, according to the Ministry of Agriculture. For the current financial year, the government has allocated a budget of around Rs 28bn to import 500,000 tons of chemical fertilizers.

The Nepali women’s U-19 cricket team made a strong start in the ICC U-19 T20 World Cup Asian Qualifiers, defeating Thailand by 67 runs in Dubai on Wednesday. Defending a target of 103, Nepal bowled out Thailand for just 35 runs.

Rachana Kumari Chaudhary was the standout performer with the ball, taking four wickets for 10 runs, while Puja and Riya Sharma each took two wickets. Krishna Gurung and Manisha Kumari Upadhayay also contributed with one wicket each, keeping Thailand’s score low.

Thailand’s Aphisara Suwanchonrathi was the only player to reach double figures, scoring 13 runs off 23 balls, while the rest of the team struggled against Nepal’s bowling attack.

Nepal, batting first, scored 102 runs for six wickets in their 20 overs. Captain Puja Mahato led the way with 35 runs off 40 balls, supported by Seemana KC and Sonu Pakhrin, who each scored 19. Thailand’s Charukan Saema took two wickets, while Sunisa Bongkodphongampai claimed one.

Nepal is set to face Kuwait on Nov 7 and the UAE on Nov 9 in the double round-robin tournament. Finishing first in the points table would secure Nepal’s spot in the 2025 U-19 Women’s World Cup in Malaysia.

Prime Minister KP Sharma Oli has congratulated Donald Trump on his election as President of the United States. Oli extended his congratulations to Trump through the social network X. The Prime Minister remarked that Trump’s second-term election marks a new chapter in American history. He also expressed his readiness to strengthen Nepal-US relations and promote mutual prosperity and cooperation.

Trump was elected president on Wednesday, defeating Democratic candidate Kamala Harris.

Gold prices dropped by Rs 4,000 per tola on Thursday. The Nepal Gold and Silver Traders Federation set the price of gold at Rs 164,500 per tola, down from Rs 168,500 the previous day. Silver prices also saw a decrease, dropping by Rs 55 per tola from Rs 2,015 on Wednesday to Rs 1,960 on Thursday.

Globally, gold prices fell sharply by 3.2 percent in just one day. Gold, which was trading at $2,745 per ounce on Wednesday, dropped to $2,657 per ounce by Thursday morning.

This significant decrease is linked to the strengthening of the US dollar following Donald Trump’s election as President.

The strengthening US dollar has also contributed to the drop in gold prices. Historically, gold and crude oil prices tend to move inversely to the value of the dollar.

Today marks the celebration of Chhath, a festival embodying purity, goodwill, and faith, observed with great enthusiasm.

The main ritual will take place this evening, as devotees worship and make offerings to the setting sun.

Though traditionally observed in the Terai districts, Chhath has recently gained popularity in hilly and mountainous areas, including the Kathmandu Valley.

During the festival, participants fast, take holy baths, and offer prasad and argha to the sun while standing in water.

In Janakpurdham, large gatherings are occurring at historic ponds like Ganga Sagar, Dhanus Sagar, Ram Sagar, Ratna Sagar, Bihar Kunda, Argaja, Maharaj Sagar, and Agni Kunda.

Preparations include bamboo fencing, banana trees, and vibrant lighting, enhancing the celebratory atmosphere.

Over 124,000 foreign tourists visited Nepal in Oct 2024.

According to the Nepal Tourism Board (NTB), a total of 124,393 tourists arrived in Nepal in October, marking a 6.04 percent increase compared to the same month in 2023, when 117,306 tourists visited. However, this figure is still 92.76 percent of the arrivals in October 2019, when 134,096 tourists visited.

In the first 10 months of 2024, around 941,000 tourists arrived in Nepal. The highest monthly arrival was recorded in March with 128,167 tourists.

Monthly tourist arrivals this year were: 79,100 in January, 97,426 in February, 111,376 in April, 90,211 in May, 76,736 in June, 64,600 in July, 72,719 in August, and 96,305 in September.

Top 10 Tourist Markets

India led the tourist arrivals in October with 16,313 visitors, followed by the United States with 16,023, and the United Kingdom with 8,019. Other key markets included China (7,750), Australia (6,929), Germany (6,018), France (5,485), Bangladesh (4,476), Sri Lanka (3,125), and Italy (2,635).

In October, India accounted for 13.11 percent of total arrivals, followed by the USA at 12.88 percent, the UK at 6.45 percent, China at 6.23 percent, and Australia at 5.57 percent. Germany contributed 4.84 percent, France 4.41 percent, Bangladesh 3.60 percent, Sri Lanka 2.51 percent, and Italy 2.12 percent.

The social media platform TikTok has been officially registered in Nepal for the first time. TikTok received its registration certificate on Wednesday.

According to the Ministry of Communication and Information Technology, TikTok has obtained VAT and PAN numbers.

The government had previously decided to ban TikTok in Nepal on November 13 last year, citing its lack of registration in the country.