Pokharel denounces 'false propaganda' over cooperative scandal

Biratnagar, September 13 — "I express regret over the misleading propaganda, propagated by some corrupt intermediaries and certain media outlets, aimed at character assassination related to the Umagauri Agricultural Cooperative," said Rishikesh Pokharel, Chair of the Public Accounts Committee of the Federal Parliament, on social media on Thursday.

The reason for his statement was news linking him to irregularities at Umagauri Agricultural Cooperative.

Umagauri Agricultural Cooperative, located in Karsiya Bazaar, Ward 4 of Dhanpalnath Rurral Municipality in Morang, was established in 2011 and is currently in distress. The cooperative has reportedly misappropriated 12 crore rupees.

Anjala Koirala, Pokharel’s wife, was once a member of the cooperative’s board of directors. At that time, the cooperative took loans from other banks. However, after the cooperative failed to repay the loans, Koirala, who had stood as a guarantor, was blacklisted.

Koirala stated that her name was blacklisted due to the cooperative. "I was a board member with good intentions at the time, but I could not attend meetings. The president made arbitrary decisions," she said. "I left a long time ago. What did the bank do? What did the cooperative do? You should investigate. Ask chairman Shambhu Rauniyar about this."

Koirala mentioned that despite having resigned from the cooperative long ago, news linking her husband Rishikesh Pokharel has recently emerged. "I resigned a long time ago, but my resignation was not accepted until much later. Why is this news coming out now? Is it to trouble Honorable Pokharel or what? I don’t know," she said.

According to sources, there is uncertainty about where and how the cooperative’s president, Rauniyar, invested the millions of rupees. "There are also questions about why banks provided more funds to the cooperative than the assessed value. Investments were initially made in the field, but then came the coronavirus," the source said. "The cooperative could not repay installments, and investments were not recovered. I’ve heard that the remaining money was invested in land by chairman Rauniyar."

Rauniyar, on the other hand, claims that the cooperative registrar’s office has exacerbated the problems instead of helping to manage the cooperative. "We had asked the registrar's office to assist with loan procurement. However, they have just given us vague responses without details," he said. "Some money is still being recovered. There is still a lot of money to be collected. People who haven’t repaid their loans are saying that savings have not been returned. I have all the details."

When asked how he plans to resolve the issue, Rauniyar mentioned that institutional loan investments need to be recovered. "We have sent letters to everyone through postal services," he said. The debt is reported to be between 1.5 to 2 crores, while the cooperative is running at a loss of over 12 crores.

The cooperative has a total capital of 18 crores. Rauniyar has reportedly mortgaged not only the members' land but also the property of ordinary people who took loans from the cooperative. The cooperative has outstanding loans of 11 crores 56 lakhs 78 thousand rupees with various banks.

Although Anjala was a director of the cooperative, all transactions were handled by chairman Shambhu Rauniyar. "At that time, MP Pokharel and Rauniyar used to travel in the same vehicle. Transactions were done with their advice. Koirala’s signature was only used. Cooperative employees would obtain her signature at the school if needed," the source said. "Their friendship was very good initially. Pokharel used to assist them in running the cooperative," said a source close to Pokharel and Rauniyar. "After the cooperative failed, their relationship deteriorated. Rauniyar is not seen in public."

A reliable source claims that Pokharel had Rauniyar detained by the police for a few days recently.

The cooperative owes 2 crores 3 lakhs 54 thousand 156 rupees in savings. The cooperative office is now closed as savers have demanded their money back. The balance sheet shows a total capital of 18 crores 49 lakhs, with 17 crores 87 lakhs 42 thousand in loans and advances.

According to Hari Bahadur Khatri, Chief of the Koshi Province Cooperative Registrar and Training Office in Inaruwa, the irregularities at Umagauri are different from other cooperatives. Members were made double debtors.

"This cooperative’s fraud is of a new kind. It appears that loans were taken from the bank by mortgaging members’ properties," Khatri said. "The borrowers repaid the loans to the cooperative, but it seems the cooperative did not repay the bank."

He mentioned that the cooperative has not submitted complete documentation. Although there are documents from the time of establishment, there are no documents from the subsequent 10 years.

During the period when MP Pokharel’s wife Anjala was a member of the board, the cooperative office is now closed, and no documents are found. "All documents seem to be kept with the president," Khatri said. "Our office has not received regular updates. Even after I visited four times, the office was found to be closed."

Meanwhile, the cooperative issued a notice on Thursday stating that Anjala Koirala had no involvement in the cooperative’s transactions. "There is no truth to the news, and we will provide all necessary information to prove it," the notice said. President Pokharel stated that false propaganda would not tarnish his integrity.