The NHRC calls for urgent reforms to stop cooperative fraud and protect citizens. Thousands suffer financial losses due to mismanagement, and immediate action is needed to restore trust.
Cooperatives play a key role in Nepal’s economy. They provide access to financial services, especially in rural areas. But recent years have seen alarming cases of fraud and irregularities.
Many institutions fail to repay deposits, leaving families in distress.
Victims have repeatedly complained about these issues. The NHRC believes government oversight has significant gaps. These loopholes allow fraudulent practices to continue unchecked.
Cooperatives were created to empower communities. Instead, unethical practices are now widespread. People’s hard-earned savings remain unpaid. Victims’ livelihoods are at risk. Trust in cooperatives is eroding quickly.
The NHRC has identified key problems. Loose oversight allows cooperatives to misuse funds, causing many people who trusted cooperatives to face severe financial hardship.
These issues also harm the sector’s credibility. Millions of depositors and stakeholders are affected.
The Commission points out that this is not just financial misconduct. It is a human rights issue. Economic insecurity affects the dignity and safety of individuals, particularly vulnerable populations.
The NHRC has proposed clear steps to resolve the crisis. First, a compensation system must be established. Victims deserve to get their deposits back. Defaulting cooperatives must be identified.
The government should ensure quick compensation for those affected.
Second, stricter monitoring is essential. The government must enforce oversight to prevent further fraud. Regular audits and penalties for wrongdoers are necessary. Institutions must be held accountable for financial misconduct.
This crisis has hit ordinary Nepalis the hardest. For many, cooperatives are their only access to financial services. Small business owners and low-income workers now face economic uncertainty.
These individuals trusted cooperatives to safeguard their money. Instead, they are left with losses and need solutions in sight.
The NHRC’s message brings hope to those suffering. Victims have long advocated for justice, and the Commission assures them that their voices are heard. Wrongdoers must face consequences, and citizens’ rights must be prioritized.
While immediate action is crucial, the NHRC also stresses the importance of long-term solutions. Preventing future fraud is just as important as resolving the current crisis.
Education also plays a role in solving the issue. Citizens need financial literacy to make safer investment choices, and awareness about economic rights and responsibilities can protect people from exploitation.
The NHRC’s statement is a direct call to the government. It urges immediate and decisive action. The focus must be on resolving victims’ grievances and punishing those responsible. Delays will only worsen the crisis and erode more trust.
The Commission reminds the government of its duty to protect citizens. Accountability is not optional. Swift reforms are necessary to restore the credibility of the cooperative sector.
Only through accountability and reform can trust in cooperatives be rebuilt.