The government on Monday inaugurated the National Cooperative Regulation Authority (NCRA), established through a recent ordinance amending the Cooperative Act, 2074 BS, to address issues in the country's cooperative sector.

Minister for Land Management, Cooperatives, and Poverty Alleviation, Bala Ram Adhikari, officiated the inauguration at a ceremony held at the former National Cooperative Development Board building in Pulchowk, Lalitpur.

During the event, Minister Adhikari administered the oath of office to the NCRA's chairperson, Arjun Prasad Pokharel, and its members. In his address, he emphasized the Authority's commitment to collaborating with cooperatives. He also pledged to amend incompatible laws and regulations within the cooperative sector and resolve all related issues within two years. Furthermore, he mentioned ongoing efforts to amend the Land and Survey Act to address land-related challenges.

The cooperative sector in Nepal has faced significant challenges, including financial mismanagement and regulatory shortcomings. A report by the Parliamentary Special Inquiry Committee on Misuse of Savings of Cooperative Institutions, 2081 highlighted severe financial mismanagement, attributing much of the crisis to government negligence. The committee emphasized the need for regular monitoring, inspection, and supervision to address these issues.

The committee also recommended establishing a specialized financial crime investigation bureau to address the rising trend of financial crimes in the cooperative sector.  According to government officials, the government formed the NCRA through the ordinance primarily aimed at demonstrating Nepal's commitment to international standards for preventing money laundering and also to address these issues. (With inputs from RSS)