National Seminar Ends with 7-Point Declaration

The national seminar of accounts supervisory committees, hosted by National Cooperatives Bank in Kathmandu, adopted seven point declaration for enhancing transparent and risk-free cooperatives.

The national seminar has come up with a commitment to enhance capacity of accounts supervisory committees and strengthen internal control system in cooperative organizations for effective and quality service through robust self-regulatory practices.

Likewise, the declaration noted the commitment to develop system to routinely evaluate and review the policy, process and elements of institutional risks and strengthen proper process, technology and internal communications systems for risk minimization.

Among other charters in the declaration include commitment to play effective role in making governing, supervisory and management bodies responsible for compliance of cooperative related laws and rules and monitoring of membership concentration, and develop regular strategic reform systems by routinely examining financial health of the cooperative organizations.

The declaration has also highlighted the need of bringing uniformity in supervision and oversight functions in cooperatives and facilitating for mitigating risks through regular internal auditing and supervision, informed Badri Kumar Guragain, Chief Executive Officer of the National Cooperatives' Bank.

Earlier on the occasion, presenting paper on 'statutory arrangements, status and way forward of accounts supervisory committee', cooperative expert Keshab Prasad Sapkota said most of the governance related problems facing the cooperatives could be averted if the accounts supervisory committee worked effectively.

"In the context when cooperative sector has experienced a bad image due to mismanagement and irregularities, building capacity of the supervisory committee should be empathized to address the problem", Sapkota who is also the member of accounts committee of the bank stressed.

"In practice, four types of leaderships are prevailing in cooperative sector in Nepal. First is the cooperatives with leadership from political section, second led by businesspersons, third led by individuals from geography away from cooperatives' location and fourth with leadership from community and members", he said, adding, "First three types of cooperatives have been empirically facing problems while the fourth category with community ownership has a track record of managing the organizations fairly".

Presenting a working paper on the status of problematic cooperatives and reform measures, law and administration expert Kashiraj Dahal suggested de-concentrating membership in cooperatives so as to avoid governance malaise propping up in the sector.

He informed that the cooperatives facing crisis have been identified for problem-solving and efforts are underway to return the deposits of the members. ---