Cooperative department flags political interference in National Cooperative Bank election, NRB silent

KATHMANDU: Nepal’s Department of Cooperatives has expressed serious concern over alleged political interference in the upcoming election of the National Cooperative Bank, warning that increasing political involvement in cooperative governance could undermine the sector’s core principles and institutional integrity.

In a statement issued on Thursday, the department said it had taken serious note of a growing trend in which political parties are reportedly forming election panels and competing along partisan lines in the elections of cooperative institutions and their governing bodies.

The department stated that such activities run contrary to the fundamental values, principles, and spirit of the cooperative movement, which is intended to operate independently and free from political influence.

According to the department, political-party-based competition in cooperative elections could negatively affect the objectives and legal framework envisioned in the preamble of the Cooperative Act, 2017 (2074 BS).

The department warned that political polarization inside cooperatives could fuel unnecessary competition, weaken institutional governance, and ultimately damage the broader cooperative movement in Nepal.

“The increasing practice of contesting cooperative elections based on political affiliation may adversely impact good governance and the cooperative sector as a whole,” the department said in its statement.

The department also urged all concerned stakeholders to ensure an environment where cooperative elections can be conducted fairly, independently, and in accordance with the original spirit of the cooperative model.

The statement, issued by Information Officer Suchitra Rai, emphasized that cooperative institutions should remain free from political influence while prioritizing cooperation, transparency, accountability, and good governance.

The concern comes amid growing controversy surrounding the election of the National Cooperative Bank, where cooperative campaigners and sector stakeholders have accused political parties of attempting to directly influence the electoral process.

Notably, the National Cooperative Bank falls under the regulatory oversight of the Nepal Rastra Bank (NRB), in addition to sectoral supervision by the Department of Cooperatives. However, despite rising concerns and formal complaints, the central bank has yet to publicly comment on the issue.

According to cooperative activists, complaints have already been lodged with the NRB demanding the cancellation of candidacies of individuals contesting under political party affiliations.

The silence of the central bank has raised questions among cooperative stakeholders, particularly as the issue touches on governance, institutional independence, and regulatory compliance within one of Nepal’s most sensitive financial sectors.

The latest development also comes at a time when Nepal’s cooperative sector is facing heightened scrutiny following multiple financial irregularities, governance failures, and public trust concerns linked to troubled cooperatives.

Sector observers argue that increased political interference could further weaken accountability mechanisms and complicate reform efforts aimed at restoring confidence in the cooperative system.