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The Parliamentary Special Investigation Committee on Cooperative Fund Misuse has questioned former Home Minister Rabi Lamichhane and Galaxy TV founder, former DIG Chhabi Lal Joshi, in connection with allegations of financial irregularities involving cooperative savings.
The committee’s investigation spanned nearly seven hours, during which Lamichhane, who was the Managing Director of Galaxy TV at the time, took two hours to thoroughly review the documents before signing them at 1:30 am on Thursday. He was accompanied by Shishir Khanal, a committee member from the Rastriya Swatantra Party (RSP), who assisted in reviewing the statements.
Rabi Lamichhane’s testimony
Lamichhane revealed that he, along with Chhabi Lal Joshi, approached a bank to secure a loan of
Rs 250 million to fund the operations of Galaxy TV. However, Gitendra Babu (GB) Rai, upon being contacted by the bank, declined the offer, stating, “I’m not the kind of person who runs around banks for a 250 million loan.” Despite the bank’s willingness to provide the loan, Rai’s refusal led them to abandon the idea.
Lamichhane explained that he had focused solely on the production of television programmes and left the financial management to others, assuming that GB Rai, a businessperson, would handle it. He denied any involvement in cooperative societies or any knowledge of funds allegedly linked to Gorkha Media Network through cooperative savings.
When questioned by the committee about the source of such a large investment and whether he had discussed the issue of financial governance with GB Rai, Lamichhane insisted that he had not, as his primary concern was content production. He also clarified that he had not taken any loans from cooperative societies nor had any of his documents been used for such purposes.
Chhabi Lal Joshi’s testimony
Former DIG Chhabi Lal Joshi also testified before the committee, explaining that his relationship with the television station deteriorated over issues related to loan collateral. Initially, there was a plan to use his wife’s house in Kathmandu as collateral for the loan, but she opposed the idea, leading to Joshi gradually distancing himself from the television project.
Joshi further stated that he had exited the television venture early and was unaware of any subsequent financial dealings. However, both Lamichhane and Kumar Ramtel’s statements indicated that GB Rai was fully informed about all financial matters.
Committee’s findings and investigations
The Parliamentary Special Investigation Committee has also conducted discussions with the auditor of Gorkha Media Network. It was discovered that loans had been taken out in the names of various individuals from cooperatives, including Suryadarshan in Pokhara, Sahara Chitwan in Chitwan, and Supreme in Butwal. However, in many cases, the required documentation was either missing or incomplete.
Sources indicate that loans were raised under GB Rai’s name and in the names of companies associated with him, such as Nature Nest and Nature Hub, but proper loan agreements (Tamsuk) were not in place. The committee’s investigation found similar irregularities in several other cooperatives, where large sums of money were lent without proper documentation.
Broader cooperative misuse allegations
The committee is also investigating allegations of organised fraud within the cooperative sector, where funds from various cooperative societies have been misused. Notably, leaders of cooperative movements, some of whom are currently facing fraud charges and have been detained, have been accused of misusing cooperative savings for personal gain.
For instance, Krishna Bahadur (KB) Upreti, president of the National Cooperative Bank and chairperson of Hamro Sagarmatha Multipurpose Cooperative, defended his actions by claiming that the misuse of funds was a result of economic downturns and the inability to recover loans. He also argued that he had played a significant role in the cooperative movement.
Similarly, Surendra Bhandari, secretary of Shri Laligurans Multipurpose Cooperative, challenged the committee to prove the allegations of embezzlement against him, while Kedar Nath Sharma, former chairperson of Shivshikhar Multipurpose Cooperative and current chairman of Tulsi Cooperative, also denied any wrongdoing. Sharma claimed that he could not only return the misused funds but also provide employment to 50,000 people if released from jail.
Committee sources mentioned that some of the cooperative leaders, despite facing serious charges, exhibited arrogance and even challenged the legitimacy of the committee’s inquiries during their questioning.
Committee’s ongoing work
The Parliamentary Special Investigation Committee is currently drafting a detailed report on the misuse of cooperative funds across 29 institutions. The report, which is expected to be submitted by September 2, aims to uncover the organised fraud occurring through cooperatives and the state’s role in protecting these practices.
The investigation was initiated after the opposition Nepali Congress accused Rabi Lamichhane of misusing cooperative savings for personal gain, particularly during his tenure as Home Minister. Although the ruling parties initially resisted forming a committee to investigate an individual, they eventually agreed to a broader probe into cooperative fund misuse.
The committee has conducted 47 meetings and questioned 50 individuals, including 20 people who were summoned from prison for questioning. The committee’s report will detail how organised fraud is taking place through cooperatives and will also highlight the state’s involvement in safeguarding these illegal practices.
