Kathmandu Post reports there has lately been an outbreak of many instances of scam in cooperative societies in Nepal. Within a short period operator of a Nagwa-based Jana Kalyan Cooperative, fled after embezzling Rs30 million, operators of Himalaya Saving and Credit Cooperative based at Maisthan ran away after misappropriating Rs50 million.
The police have arrested some of the accused but depositors are yet to get back their money.
More than 150 depositors have filed complaints with police. Most of the depositors are daily-wage earners having deposits ranging from Rs3,000 to Rs400,000, a source is quoted saying.
A couple of years ago, operators of Jay Shree Laxmi Saving and Credit Cooperative fled. Around 900 depositors, including vegetable sellers, rickshaw pullers, daily wage earners and small entrepreneurs had deposited around Rs 40 million in the cooperative.
Sources say ordinary Nepali citizens are lured by higher interest rates and slogans of the cooperatives. They deposit their hard-earned money without proper background check, as per the existing Cooperative Act in Nepal, anyone is allowed to establish and run cooperatives.
