The parliamentary probe into the multi-billion-rupee cooperatives scam is nearing completion, and the committee is expected to submit its report by the deadline, according to its members.

The probe committee has a three-month mandate starting on May 28. Alongside drafting its report, the committee has been interrogating those accused in the scam and suspects held in police custody across the country.

“Until now, we have interrogated 28 people connected in the cooperatives scam, with 17 in custody,” Ishwari Devi Neupane, a committee member, told the Post.

According to her, the committee has been interrogating those accused in the scam since it decided on August 6 to summon individuals including former deputy prime minister and home minister Rabi Lamichhane, who is also the president of the Rastriya Swatantra Party (RSP).

“The committee is planning to record Lamichhane’s statement soon. But we have yet to issue a formal notice for his appearance,” Sarita Bhusal, a committee member, told the Post. He might be summoned by the end of this week, she suggested.

“Lamichhane and Chhabilal Joshi, the original founders of the Gorkha Media Network, are accused of channeling cooperatives funds to the media company that operated Galaxy 4K Television [now defunct], so we intend to question them together once we have summoned others involved in scam,” Neupane added.

Another committee member, Lekhnath Dahal, also said that the date to call Lamichhane has not been fixed though it is likely that he will be summoned by August 23.

“However, whether Lamichhane will be called that day or not will be determined by the availability of Chhabilal Joshi,” Dahal told the Post. “Joshi currently is performing the ritual following the death of his mother which will be over on August 22.”

On Sunday, the parliamentary committee recorded the statement of Bipin Acharya, joint-secretary of the RSP. Acharya, who was creative director of the Gorkha Media Network, was interrogated at the committee’s secretariat in Singha Durbar on Sunday.

Acharya, along with RSP president Lamichhane, is alleged to have been involved in embezzling funds from multiple cooperatives established under the leadership of Gitendra Babu (GB) Rai, who also chaired the media company.

While recording his statement, Acharya, however, denied his involvement in the cooperative scam, Dahal said. “During the investigation, we found Rs120 million to have been rerouted to his account from different cooperatives, but Acharya claims he is unaware of where the money in his bank account came from.”

The preliminary finding shows RSP chief Lamichhane’s involvement in cooperatives-related issues, Dahal added. “But, we need to wait for the final report to conclude whether his involvement was legal or not.”

The committee also quizzed several individuals who are in judicial custody on charges of embezzling deposits from cooperatives. Members of the probe said they are in the final phase of summoning the people from judicial custody. To date, the committee has brought Sudhir Basnet, who was chair of Oriental Cooperatives; former lawmaker Ichha Raj Tamang, who was chair of Civil Cooperatives; and Krishna Bahadur Upreti, chair of Ideal Namuna Cooperatives, to its meetings and interrogated them on the issue. All of them are in custody.

Likewise, police have summoned Kumar Ramtel, Bhabeshwar Aryal, Shiva Kumar Gurung, and Kalpana Shrestha of the Pokhara-based Suryadarshan Cooperatives for interrogation. They were brought from the custody in Pokhara to Kathmandu for the purpose.

Om Prakash Gurung, chair of the Supreme Cooperatives, Butwal, was also brought to Kathmandu from Bhairahawa Prison.

The committee also interrogated Dipesh Kumar Pun, the former secretary of the Supreme Cooperatives, Butwal. Pun is the son of former Vice President Nanda Bahadur Pun.

As per the committee’s terms of reference, investigators will look into the scams related to 29 cooperatives. Twenty of them are listed in Schedule 1 while nine are in Schedule 2.

Those listed under Schedule 2 of the ToR are: the Ideal Yamuna Multipurpose Cooperative, the Image Saving and Credit Cooperative, the Sahara Saving and Cooperative, the Samanta Saving and Credit Cooperative, the Sano Paila Saving and Credit Cooperative, the Supreme Saving and Credit Cooperative, the Suryadarshan Saving and Credit Cooperative, the Sumeru Saving and Credit Cooperative, and the Swarnalaxmi Saving and Credit Cooperative.

Cooperatives from where they rerouted money to the Gorkha Media Network come under Schedule 2 of the ToR.

After Gorkha Media Network office bearers were accused of involvement in the embezzlement of cooperatives money, depositors of various cooperatives whose money was rerouted to the media company had asked the law enforcement agencies to book the culprits under the law.

Lamichhane was the managing director at the media company that operated the now-shuttered Galaxy 4K broadcaster before joining politics and launching the RSP under his leadership in June 2022. Lamichhane held 15 percent shares in the media company as its managing director.

Amid accusations of defrauding millions of rupees from several cooperatives, Lamichhane, also the RSP president, repeatedly claimed that he doesn’t have accounts in any of the cooperatives, and hence, there is no question of his involvement in embezzling the deposits.

Lamichhane claims he was just an employee of the media company and did not know how its funds were arranged for. He argues that he cannot be held accountable for the investments and loans involving the now defunct company and its chair, GB Rai.

The Company Act 2006, Section 2(j), defines Lamichhane's position (managing director) as an ‘Officer’ of the company’s corporate body.

According to the Act, the ‘Officer’ of a company signifies a director, chief executive, manager, company secretary, liquidator, or any employee undertaking departmental responsibility of the company as its officer.

While the Company Act 2006 mentions the managing director as an officer of a company, the National Penal Act 2017 states that the managing director is a responsible person who should be held accountable should the company commit any crime falling within the scope of his/her authority.

Section 30 of the National Penal (Code) Act 2017 states that criminal liability for an offence committed by a corporate body [legal entity with separate legal existence from a company’s members or shareholders] is vested in one who commits or causes the commission of the act.

“Where any firm, company, or body corporate commits, or causes the commission of, an act considered to be an offence under this Act or law, the person who committed, or caused the commission of, such offence shall be responsible for such act,” the clause reads.

“Where such a person cannot be identified… in case of a firm, the director, managing director, or general manager who did or caused such an act… and where even such a person cannot be identified, the chief executive of such a body shall bear the criminal liability,” it says.

While Lamichhane claims that he was only an employee at the company, Advocate Om Prakash Aryal said that the provisions mentioned earlier hold Lamichhane accountable for the company’s decisions to get loans from the cooperatives because he was the company's managing director at the time.

The committee was formed on May 28 after the Nepali Congress repeatedly obstructed parliamentary proceedings, demanding parliamentary probe.