Image Credits - myRepublica
Hundreds of victims of cooperative financial schemes formed a human chain in Kathmandu’s Ratnapark and Tundikhel areas on Thursday, demanding justice and redress for their losses. The protest, organized by a coalition of affected individuals and advocacy groups, aimed to draw attention to the plight of those who have suffered due to the collapse of various cooperative institutions in Nepal.
The demonstrators, holding banners and placards, called for stronger regulatory oversight and accountability in the cooperative sector. They allege that lax regulation and oversight failures have allowed unscrupulous operators to mismanage funds, leading to significant financial losses for many investors. The protestors urged the government to take immediate action to recover their lost savings and ensure stricter enforcement of laws governing cooperatives.
Many of the participants shared their personal stories of financial hardship, recounting how they invested their life savings in cooperative schemes with the promise of attractive returns, only to find themselves defrauded. The collapse of these cooperatives has left thousands of people across Nepal struggling to recover their money, with some facing severe economic difficulties as a result.
The protest also highlighted the broader issue of financial literacy and the need for public awareness about the risks associated with investment in cooperative institutions. The organizers called on the government and financial institutions to provide better education and resources to help individuals make informed decisions about their investments.
In response to the protest, government officials acknowledged the grievances of the cooperative victims and assured them that their concerns would be addressed. The Ministry of Cooperatives and Poverty Alleviation has pledged to investigate the collapsed cooperatives and explore avenues for compensating the affected individuals. However, victims expressed scepticism, citing previous instances where promised actions did not materialize into tangible outcomes.
The human chain protest in Kathmandu is part of a broader movement by cooperative victims across the country, who are increasingly vocal in demanding justice and reform. As the issue gains more attention, there is growing pressure on the government and regulatory bodies to implement effective measures to protect investors and restore confidence in the cooperative sector.
Legal experts and consumer rights advocates have also weighed in, calling for comprehensive reforms to ensure better governance and transparency in the management of cooperative institutions. They argue that without significant changes, the cooperative sector will continue to pose risks to public confidence and financial stability. In addition to calling for regulatory reforms, experts emphasize the need for a more robust legal framework that can hold fraudulent operators accountable and provide a clear process for compensation and resolution for affected members.
The protest has also sparked a broader discussion on the role of cooperatives in Nepal’s financial ecosystem. Although a major provider of community-based financial services, cooperatives have vulnerabilities that have been brought to light by recent scandals. Stakeholders are urging the government to not only address the immediate crisis but also to consider long-term strategies for strengthening the cooperative movement, ensuring it can continue to serve its intended purpose of supporting economic inclusion and development.