By A Staff Reporter
Kathmandu, Oct. 8: Finance Minister Janardan Sharma said that Nepal needed a regulating body for the cooperatives sector.
“There are embezzlements of funds in the cooperatives but the sector lacks a regulating mechanism,” he said while addressing the 15th anniversary programme of Syuchatar Saving and Credit Cooperative Organisation on Thursday.

Minister Sharma expressed concerns over the misappropriation of funds in cooperatives. “I have heard about the embezzlement of the hard-earned money of people including senior citizens who have been depositing their allowances in the cooperatives,” he said.
He also stated that the government had started discussions about creating an agency to regulate the sector.

Minister Sharma said that cooperatives are representing the community in the national economy. “Country’s economy will prosper in collaboration of the public, private and cooperative sector,” he said.
According to him, community is the primary player in development and prosperity, and leads all other sectors. So, it should be connected with the production and help in employment generation.
He stated that the government would play a coordinating role, adding it wouldn’t invest but manage economic affairs.

“Every person has more or less money with them which makes a large sum collectively. We have to create an environment to collect that scattered money to invest in productive sectors,” FM Sharma said, adding cooperatives can make a significant contribution in this regard.
While there is a distance between the large commercial banks and common people and there is poor direct communication between them. But cooperatives are in direct link with the community, so they can collect money, mobilise it and involve in production of goods and services to bring prosperity in the society, said the Minister.

He maintained that the country needs employment and self-employment where cooperatives have an important role to play.
“This is the reason we have considered cooperatives as one of the pillars of the economy. To make the economy strong, each pillar should be strong,” he said.

Likewise, FM Sharma said that only economic development is not enough for social transformation, there should be cultural revolution as well and both of them should move further simultaneously.
According to him, since a policy to allow cooperatives to run a separate company to invest the capital is passed, they should invest their funds in productive sector.

“Investment made in the productive sector will help in the prosperity of community and the nation. It will help in reducing our dependency to foreign country as well,” he said.