Chairperson of National Cooperative Federation Resigns, Citing Political Interference

Kathmandu. Om Devi Malla, the Chairperson of the National Cooperative Federation, has resigned. She submitted her resignation after staying in the United States for about three months. Addressing the 34th General Assembly of the Federation, she stated that she resigned due to political interference.

In her resignation letter, she complained that although she initiated positive work during her short tenure, such as unlocking a stalled budget, organizing seminars in all seven provinces, and launching a digital conclave and job fair, she faced extreme political interference and pressure.

She revealed that despite having unilateral dominance on the Federation's board of directors, she was compelled to consult with the departmental head of the party (UML) before every meeting and was pressured to make decisions favorable to the party's interests.

She stated that the environment for working independently as the Chairperson was not created, and she became mentally very stressed due to non-cooperation and humiliation from her own colleagues. She clarified that even after going to the US for health treatment, she was continuously pressured by colleagues to resign, and when she refused, she was threatened with an impeachment motion during the General Assembly, leading her to conclude that she must leave the post in distress.

She claimed that she suffered due to having to obey the orders of individuals who had no contribution to cooperatives, or because she was a woman, or because she did not engage in factional politics within the party.

Full text of Malla's resignation:

It has been two years since I was unanimously elected as the Chairperson from the 31st Annual General Assembly of the National Cooperative Federation Ltd. Nepal, the apex body of the cooperative movement in Nepal. I have been in the United States for the past six months for health treatment and family visits due to sudden illness.

I had planned to return home before the 33rd Annual General Assembly held last Poush, but due to further deterioration in my health, I could not attend the General Assembly and sent a message of best wishes, which my colleagues are aware of. The cooperative movement will evaluate my role as Chairperson.

I believe that even in the short period of my tenure, my team and I initiated some positive efforts. We continued the budget stalled at the Ministry, organized seminars in all seven provinces in collaboration with the government, released the National Cooperative Song, celebrated the International Year of Cooperatives 2025, held discussions with the government regarding cooperative policy, organized the Cooperative Digital Conclave, and the Cooperative Job Fair, among many other activities.

I do not claim those works were sufficient, but the work had begun. I want to share some experiences with all cooperative members so that the ups and downs I faced during my short tenure as Chairperson are known to all and serve as a stepping stone for improvement in the Federation. Since becoming Chairperson, I did not receive full support internally or externally.

Although the selection of the Board of Directors was politically unilateral, I could not work spontaneously according to my plans due to pressures such as having to compulsorily consult with the departmental head of the party before every meeting of the Federation, and decisions needing to be in line with the party's interests. The Chairperson did not have an environment to work independently on important matters like the appointment of the General Manager and other office affairs. Nevertheless, some important work was accomplished due to the support of some colleagues and the positive work style of the employees.

I was also under significant mental stress due to the interference from the party's cooperative department. I made tireless efforts with the objective of uniting cooperative members of all political affiliations within the Federation, but even with board members from the same party, there was a situation of non-cooperation. I was mentally weakened by the humiliation and interference from my own colleagues. In Bhadra last year, when my family decided to go to America, I came to the US following my family's advice that staying abroad for some time would help reduce stress along with treatment. I thought things might change after coming here, but perhaps due to pressure from the party leadership, colleagues at the Federation repeatedly pressured me to resign.

Colleagues also threatened to bring an impeachment motion against me in the General Assembly if I did not resign. I sent a message of best wishes to the General Assembly. Following further intense pressure, I concluded that I must resign. I have been involved in the cooperative movement for more than two decades because I wanted to work; I served as a member of the Federation's board, Vice-Chairperson, Senior Vice-Chairperson, and finally Chairperson. When I was in lower positions, I supported and helped everyone, but after becoming Chairperson, I did not receive support from those I had helped; instead, a situation of non-cooperation arose.

I learned how ruthless politics can be after becoming the Chairperson of the Cooperative Federation. I also understood how cruel leaders can be when their interests do not align. I don't know if they thought women cannot work? If I failed to form factions within the party? If my faction did not align with theirs? Or if I somehow offended the party's cooperative department or its members? I myself do not know what happened or where I went wrong, only the orders, directions, and baseless stress from people who have no contribution to cooperatives. Considering all these factors, I am resigning from the post of Chairperson of the National Cooperative Federation Ltd. Nepal today, feeling extremely distressed.

I request the National Cooperative Federation Ltd. Nepal, representatives of all its member unions and organizations, all cooperative colleagues, regulatory bodies, and everyone else to formally accept this resignation, which I submitted before the completion of six months since I handed over the charge to the Senior Vice-Chairperson as the acting chair, to facilitate the election of new leadership.

Problems have recently arisen in cooperatives; there is no sector without problems. Problems occur, and they can occur anywhere, anytime. I feel that our collective initiative was insufficient to solve the problems in cooperatives; when it became apparent that we alone could not manage, we started requesting help from parties, the government, and other stakeholders. However, when people start trying to eliminate others based on factionalism, pressure, and influence from other individuals, it does not benefit the cooperative movement. Many colleagues who contributed to the cooperative movement yesterday are in trouble today—some may have institutional problems, some personal problems, and some may have bad intentions. Instead of identifying the cause of the problem and working towards a solution, those who politicize cooperatives have engaged in activities that exacerbate the problems by grouping everyone together and taking sides based on whether they supported them in elections or selected them as advisors. If such wrong practices are stopped, the cooperative movement will become more effective.

I hope that such interfering actions will not occur in the future, and that the cooperative movement in Nepal can be made more systematic with the cooperation, participation, and activity of everyone. Some colleagues may feel that I am an obstacle to this. If my presence alone is causing problems, I am ready to face the consequences, but I am not an obstacle, and I commit to not being one, as I resign. I trust that all members of the assembly will proceed towards electing new leadership by getting the regulations, amended and passed by the 33rd General Assembly, approved by the relevant cooperative department and bodies as soon as possible, and conducting the election for the National Cooperative Federation's Board of Directors according to those amended regulations. I extend my advance congratulations and best wishes to the new Board of Directors that will emerge from the upcoming election process.

If, in the course of my work in the past, I have done anything wrong, knowingly or unknowingly, against the cooperative movement, or if I have hurt anyone's feelings or caused difficulty anywhere, I apologize for it. I also know that my decision will surely sadden those who love me, love the cooperative sector, and have contributed to its promotion. However, I am compelled; health is the most important thing, and stress severely affects health. In the past, cooperatives were my resting place when I was stressed elsewhere, but today I receive such immense stress from this very cooperative sector, where those I supported give me stress. If I had realized that my health would be affected, perhaps I would have thought differently. When working in the cooperative sector, I had no stress; I don't know where the stress that I didn't have while working in lower positions came from after becoming Chairperson, or what storm brought it. There is no need to remain in leadership while enduring someone's pressure every day. With this thought, I am stepping down from the formal responsibility of the Federation. I apologize for any inconvenience this may cause to the cooperative sector and all my colleagues.

Om Devi Malla
Chairperson, National Cooperative Federation Limited