Seven years after forming a committee to resolve failing cooperatives in Nepal, over 90% of depositors’ money remains unpaid, local media reports suggest.
The Problematic Cooperatives Management Committee, established in 2018, has returned just Rs 3.71 billion out of Rs 38.42 billion claimed from 22 troubled cooperatives, helping only about 5,000 depositors.
Over 50,000 more await refunds. Asset valuation and auctions are underway to recover funds, with Rs 2.88 billion returned in the current fiscal year alone. Ideal Yamuna Cooperative was only recently declared problematic and is still under review.
So far, settlements have been completed for just three out of 23 cooperatives. Experts blame the crisis on poor governance, weak regulation, and political interference. Once hailed as a pillar of Nepal’s economy, the cooperative sector now faces widespread distrust and financial instability.