Kathmandu, April 3: Massive financial irregularities have been uncovered at Gorkha Saving and Credit Cooperative, with operators found to have embezzled approximately Rs. 4.12 billion.
According to the Office of the Problematic Cooperative Management Committee, the misappropriation involves key individuals including Tej Bahadur Tamang and DB Bamjan, among others.
Following the Gen Z movement and under the newly mandated government led by Balendra Shah, authorities on Friday arrested four individuals linked to the cooperative fraud. Those detained include chairman Iman Singh Rai (61), CEO Lal Bahadur Kshetri, along with Abin Kumar Rai and former audit committee member Karna Bahadur Rai.
Dambar Bahadur (DB) Bamjan — previously linked to the Gorkha Development Bank scandal — has also been associated with the same cooperative. He had served as chairman when the bank ran into crisis, and the cooperative is now reported to have collapsed under alleged collusion involving his family.
The committee reports that the cooperative had collected Rs. 4.12 billion in deposits from savers. Its total savings, including interest, stand at Rs. 4.14 billion, while total loans (including interest and penalties) amount to Rs. 4.46 billion.
Investigations reveal that the crisis deepened after operators and their family members failed to repay loans for years. Notably, Bamjan and his brother Tej Bahadur Bamjan — who is not even a member of the cooperative — have outstanding dues for a long period. Loans were reportedly issued in Tej Bahadur’s name by DB Bamjan.
According to the report, Tej Bahadur owes Rs. 781.5 million, while D.B. Bamjan himself has an outstanding liability of Rs. 564 million, including principal, interest, and penalties. Additionally, Kumari Tamang, Bamjan’s wife, has unpaid loans totaling Rs. 31.4 million.
More than 70 percent of the loans taken by current and former officials and their relatives remain unpaid. While loans issued to general members are relatively small and potentially recoverable, depositors are unlikely to get their money back unless dues from officials are cleared.
The cooperative, initially promoted as being backed by the British Gurkha Group, had gained public trust during its early days. However, another cooperative linked to the same group — Civil Cooperative — had already been declared problematic in the past. #nepal #cooperatives
