Police arrested seven people on Wednesday on charges of embezzling the savings of yet another cooperative in Pokhara.
Based on a financial assessment report prepared by the Office of the Cooperative Registrar, Kaski Police arrested seven individuals, including the promoters of the cooperative.
Deputy Superintendent of Police Hari Bahadur Basnet, the information officer of Kaski Police, said that the police arrested the cooperative's chairman Surendra Bahadur Godar, treasurer Hiramani Dahal, secretary Dil Bahadur KC, member Dorje Tamang, manager Bhishma Prasad Gurung, market head supervisor Bedi Prasad Suvedi, and former secretary Indra Prasad on charges of embezzling savings deposited by the public in Pokhara Savings and Credit Cooperative Ltd.
According to DSP Basnet, the Office of the Cooperative Registrar had submitted a financial analysis report along with recommendation for action on Tuesday, stating that over Rs 887 million deposited by the public in the cooperative had been embezzled.
DSP Basnet said that the police made the arrests based on the report and have begun investigation.
The process for extending their remand through the Kaski District Court has been initiated, and a search for other individuals involved in the embezzlement is ongoing, police said.
The Office of the Cooperative Registrar, Gandaki Province, had assigned Nirmal Gautam the responsibility of conducting a financial analysis and investigation based on complaints filed by depositors of the cooperative. Action was initiated on the basis of the report submitted by him.
The financial analysis report mentions investments in loans without collateral, embezzlement of the cooperative’s savings by opening fake accounts, and illegal investments.
The report also states that the section officer of the Ministry of Land Management, Cooperatives, and Poverty Alleviation was bribed to influence the investigation. It says that a bribe of Rs 500,000 was offered to the ministry’s section officer Prem Raj Luitel when he was on an inspection visit.
The cooperative, which started operations in 2001 with its main office at Sirjana Chowk in Pokhara. It later moved its head office to Naya Bazar. The cooperative operated service centers at Amar Singh Chowk and Sirjana Chowk.
In Pokhara, cases related to misuse of savings at cooperatives including Suryadarshan Savings and Credit Cooperative, Prime, Balidan, Mitramilan, and others, are already sub judice in courts.
These cooperatives face charges such as making illegal investments, providing loans to non-members, and promoters embezzling savings against the law.
They have been charged with cooperative fraud, money laundering, and organized crime.
The financial analysis report has recommended filing cases of a similar nature against the promoters of Pokhara Savings and Credit Cooperative as well.
