KATHMANDU, May 28: The government is facing mounting criticism for its plan to inject Rs 40 billion from state coffers into a revolving fund aimed at repaying depositors of troubled cooperatives. Critics argue the move amounts to misuse of taxpayers’ money at a time when revenue collection is sluggish and the state is struggling to meet immediate financial liabilities.
Last week, it disbursed Rs 1.4 million to 378 depositors.
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Initially, the government had pledged only Rs 250 million to refund victims of problematic cooperatives. However it has come to light that the government is planning to utilize Rs 40 billion to bail out the cooperative sector. The sudden escalation in funding has sparked outrage across political and public circles.
Speaking in parliament, Shram Sanskriti Party Chairperson and lawmaker Harka Raj Rai condemned the decision, saying it was inappropriate to use taxpayers’ money under the guise of relief. “Why don’t the general public raise concerns on funds being distributed from their money paid in taxes?” Rai questioned on social media.
Nepali Congress leader Udaya Shumsher Rana also voiced concern, warning on Facebook that the plan could shield key culprits behind cooperative misappropriation. He cautioned that such actions risk undermining Nepal’s efforts to avoid being blacklisted by the Financial Action Task Force.
The government, led by the Rastriya Swatantra Party, has further been accused of acting to protect party chairperson Rabi Lamichhane, who faces multiple convictions related to cooperative fund embezzlement.
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