The cooperative sector in Nepal has been reeling under massive financial scandals for years, with thousands of ordinary savers losing their money due to weak regulation, political patronage and institutional misconduct. Despite forming 13 committees since 2024 to study the crisis and recommend reforms, no effective resolution has emerged, and public trust has eroded.
A special parliamentary probe led by UML leader Surya Thapa revealed that 40 cooperatives, including 18 publicly questioned entities, embezzled nearly Rs 88 billion. Illegal loans alone exceeded Rs 53 billion, while investment-linked fraud accounted for nearly Rs 3 billion.
Over the past decade, police have arrested 669 individuals in connection with cooperative scams, while 1,540 are still at large. High-profile political figures and cooperative officials, such as former Home Minister Ravi Lamichhane, ex-MP Ichcharaj Tamang and former DIG Chabilal Joshi, are among those jailed or absconding.
The fraud linked to institutions like Gorkha Media, Civil Cooperative and Swarnalakshmi Sahakari has affected tens of thousands of savers, yet most victims remain uncompensated and the economic damage persists.
