KATHMANDU: The recently released report by the “Inquiry Commission on Malpractices in Cooperatives, 2026” reveals that public trust in the cooperative sector has severely eroded due to widespread financial irregularities, embezzlement of depositors’ funds, and weak regulatory oversight.

Despite being a vital pillar of Nepal’s three-pillar economy, cooperatives have plunged into crisis because registration and expansions were approved without proper criteria, coupled with direct political interference and a lack of coordination among regulatory bodies.

In response, Pratibha Rawal, Minister for Land Management, Cooperatives and Poverty Alleviation, stated that the government is committed to acting on the commission’s recommendations.

She said the focus would be on strengthening governance, carrying out structural reforms, and improving loan recovery to restore cooperatives as reliable, member-centric institutions.