The Problematic Cooperative Management Committee, established by the federal government to rescue depositors and manage failing cooperatives, has recovered less than 10 percent of the nearly Rs 38.42 billion in public savings allegedly embezzled or misused by troubled cooperatives across the country.

Established on January 13, 2018 under the Cooperative Act 2074 BS, the committee has been tasked with investigating the assets of problematic cooperatives, recovering misused funds, and settling their liabilities. However, in the seven years since its inception, the committee has failed to resolve the financial troubles of even a single cooperative.

According to the committee, 61,094 depositors have filed complaints stating that their savings were embezzled or misused. As of now, the committee has managed to return and reconcile only Rs 3.71 billion. The remaining Rs 34.71 billion is still pending, raising serious concerns over the committee's competence and the effectiveness of its mandate.

Read: Committee to Solve the Problems of Troubled Cooperatives itself in Trouble

So far, the government has declared 23 cooperatives as "problematic," assigning the committee responsibility for their management. However, only partial settlements have been initiated in three cases. In 15 of these 23 cooperatives, depositors have claimed losses totaling Rs 6.74 billion. The committee is still collecting details for the five cooperatives recently added to the list.

Adding to its inefficacy is its unstable leadership. The committee has seen four chairpersons replaced in first six years. The first chairperson, Gauri Bahadur Karki, was appointed based on recommendations from a government commission he led to study the cooperative crisis. He was removed within five months due to political changes and election-related restrictions. His successors — Yuvraj Subedi, Kumar Prasad Pokharel, and most recently, Kashiraj Dahal — also failed to complete their mandates, either resigning or finishing their terms without achieving key outcomes.

Despite being authorized to freeze the assets of problematic cooperatives, take over operations, and recover loans or liquidate properties, the committee’s impact remains negligible. Member-secretary Keshav Prasad Paudel, during a press briefing on Sunday, admitted that the possibility of fully reimbursing all affected depositors is "extremely low."

From mid-October 2024 to June-end, the committee collected just Rs 298.2 million and has proposed returning that amount to 56,106 depositors. However, this sum covers only 41 to 57 percent of what each depositor is owed.

In its recent annual report, the committee cited limited resources as a key obstacle. It requested additional manpower, vehicles, computers, and 15 police personnel under the command of a Deputy Superintendent of Police (DSP) for security. Yet, these demands remain unmet. Currently, the committee operates with just 18 staff, including administrative assistants and two police officers.

The list of cooperatives officially categorized as problematic includes Oriental Cooperative Ltd, Standards Saving and Credit Cooperative Ltd, Prabhu Saving and Credit Cooperative Ltd, Societal Saving and Credit Cooperative Ltd, Luniwa Multipurpose Cooperative Ltd, Pashupati Saving and Credit Cooperative Ltd, Shivshikhar Multipurpose Cooperative Ltd, and Tulsi Bahumi Cooperative Ltd, among others.

Deposits belonging to members of other cooperatives such as Hamro Naya Krishi Cooperative, Krishi Bikas Multipurpose Cooperative, Kantipur Saving and Credit Cooperative, Laligurans Multipurpose Cooperative, Gautamshree Multipurpose Cooperative, Gorkha Saving and Credit Cooperative, and Nepal Cooperative Financial Institution remain unrecovered.