Cooperative operators duping public will be prosecuted: DPM Shrestha

By A Staff Reporter,Kathmandu, Jan. 23: Deputy Prime Minister and Minister for Home Affairs Narayan Kaji Shrestha has said that it is necessary to make legal and institutional arrangements to control financial crimes.

Addressing the Crime Investigation Review Meeting organised by the Nepal Police Headquarters on Monday at the National Police Training Institute in Maharajgunj, DPM Shrestha said that necessary legal and institutional arrangements for the investigation of financial crimes will be managed by developing skilled manpower and brought into the framework of legal action.

"It is reported that the 'dealing' of billions is being done through crypto currency, illegal mode of financial transaction in Nepal, transactions of hundi and foreign currency are being made in new methods, a new trend has been seen in opening letters of credit (LC) to evade tax to the government,” Deputy Prime Minister Shrestha said.

"All these new technological challenges have been created and seen as new problem in the national economy. Cryptocurrencies are being used in major crimes, the recent gold scandal has also revealed the use of crypto, it must be controlled at all cost,” claimed DPM Shrestha. 

Mentioning the need to prepare skilled manpower to investigate in cryptocurrency trading, he said that the government felt the lack of legal arrangements for this. 

Deputy Prime Minister Shrestha said that financial crimes and frauds are increasing in the society as cooperatives deviate from their original purpose and aim and turn into financial institutions to earn more money in a short period of time. 

He said that the government is preparing to create a law to control co-operative fraud soon.

"Cooperative and its operation modality should be redefined by amending the laws as cooperatives cannot be operated as institutions like commercial banks," said DPM Shrestha.

He said that the government has decided to establish a regulatory body, institute a deposit and credit guarantee fund and make the troubled cooperative management committee effective through the formation order of the Cabinet meeting.

Mentioning the findings from the initial investigation that the directors of the co-operatives have cheated the savers arbitrarily, he said that an investigation will be started soon on the transaction of such co-operatives. 

Deputy Prime Minister Shrestha said that the process of taking action against cooperative operators involved in crime and fraud and giving justice to depositors has progressed. 

"The government will give justice to depositors and cooperatives will be promoted as the backbone of the economy," he said.

Attorney General Dr. Din Mani Pokhrel said that in recent days, when the series of economic crimes has increased, a specialised structure should be created to investigate these related crimes. Few weeks ago, the Nepal Police Headquarters had also announced to establish separate financial crime investigation bureau under Nepal Police. 

Pokhrel emphasised on the need to strengthen the system of investigation, prosecution and justice based on scientific, objective and reliable evidence.

Inspector General of Police Basanta Bahadur Kunwar said that the police have started homework for the establishment of a specialised bureau to investigate financial crimes.

IGP Kunwar revealed that rather than police investigating the victim's side, the criminals and their lobbying groups have their dominance and syndicate in fair crime investigation.

"Criminals have more knowledge about their rights than victims and crime investigators. And, they do have a syndicate in their favour,” IGP Kunwar said.  

Deputy Mayor of Kathmandu Metropolitan City, Sunita Dangol, said that the capacity of Nepal Police should be enhanced to meet the challenges created by digital crimes. She said that the KMC is going to provide training to develop skilled manpower related to cyber security under scholarship.