Meaningful Years in NEFSCUN: A Retrospect

The credit union sector of Nepal has occupied special place since the inception of the cooperative movement in Nepal. In fact, the CU movement, till date, has become synonymous to the cooperative movement. Statistically too, the credit unions enjoy lion's share in the cooperative movement.
As the only peak body of the credit cooperatives in the country, the Nepal Federation of Savings and Credit Cooperative Unions Ltd. (NEFSCUN) has been equipping its member cooperatives in every possible fashion since it came into existence. Envisioned by a group of cooperative pioneers led by the late Bhojraj Ghimire, it was established on 16 August 1988 prior to any specific statutory provision. Hence, it is the oldest cooperative union in the country. However, the enactment of the Cooperative Act 1992 provided it the passage to obtain legality and succeeded in registrating from the Department of Cooperatives on 14 September 1993.
Every year, NEFSCUN celebrates its anniversary on Shrawan 32 (as per the Nepali calendar) This year it is celebrating its 36th Foundation Day amid much fanfare. In terms of transaction, coverage and credibility it has established itself as one of the pioneer cooperative federations of the country.
Primarily, it aimed to bring the informal scattered saving groups and a handful of savings and credit cooperatives under its umbrella. The objective at the seminal stage also included bringing transformation in the lives of commoners and empowering them through inculcating saving culture and credit mobilization. Gradually NEFSCUN started spreading wings and all thanks to the financial and technical assistance provided by the Irish League of Credit Unions (ILCU), Canadian Cooperative Association (CCA), Centre for International Studies and Cooperation (CECI), etc

In addition to technical backstopping, mutual expose visits and exchange programs, these associations have armed NEFSCUN in delivering much needed mentoring and guidance to its member credit unions. In due course, NEFSCUN reached a milestone when it developed association with the Association of Asian Confederation of Credit Unions (ACCU) in 1998. To state it honestly, it is the ACCU that has helped NEFSCUN reach where it is today in all spheres of its service. Moreover, learning from the best international in regard to quality assurance program, NEFSCUN gave birth to a home-grown standardization program called Program for Building Absolute and Professionalization (PROBATION), a tool to test the member credit unions enrolled in the program. This has absolutely helped members get tools and indicators on the basis of which their financial strengths and infirmities are accurately measured with remedial measures.

Later, in 2018 it received direct membership of the World Council of the Credit Unions (WOCCU), in 2023 it got similar status form the International Cooperative Council (ICA) and is about to receive membership from the International Raiffeisen Union (IRU). It becomes evident that NEFSCUN's foreign relation has spread across Asia, North and South America to Europe and Australia with the apex financial cooperative strengthening its international network. Best industry practices learnt and acquired through physical and remote learning are shared and helped to internalize as well as institutionalize in the member organizations. Likewise, it boasts of the robust strategic alliance with numerous international as well as national organizations in the span of 35 more years. Currently, it entered into collaboration with the USAID: Trade and Competitiveness.

 After, the support from the foreign allies, it started emphasizing on the central role of lobbying and advocating the pertinent issues of the credit union movement. Since decades ago, it raised the issue of Credit Union Act, Stabilization Fund, credit Information Centre, Debt Recovery Tribunal (DRT) among which a few have materialized and a few are in pipeline. As a result of persistent advocacy, the Cooperative Act 2017 paved way for the establishment of Stabilization Fund, but with a handicapped structure. The credit for realizing this again goes to the ACCU which insisted the federation to move into the direction. It has been reiteration that standardization and stabilization are the two wheels of the credit union movement.

On the persomal front, I was privileged to get an opportunity to captain the management team of the NEFSCUN for a while. Most precisely, it was an opportune filled with challenges. I was eager to grab it with both hands. Armed with more than two decades of experience in the sector, I was more than prepared to convert the experience into expertise and contribute to the best of my capability. It was a conscious decision. And after distancing from it also, I don't have any regrets.

Life is a roller coaster ride. The 4 year and a 2-month tenure at NEFSCUN starting from the Deputy Chief Executive Office, climbing up to Acting Chief Executive Officer and eventually leading the organization as the Chief Executive Office was indeed a bag of mixed experience and emotions, indeed a memorable undertaking. Within a month of my entry into the NEFSCUN, it celebrated the 31st anniversary and after a month of my exit, it is all gearing up to mark the 36th Foundation Day. I cannot help congratulating NEFSCUN in advance for the upcoming celebration and wish a grand success in its future endevors. Although I called it a day, my association with the cooperative movement will last long.

Upon retrospection, what I feel is that the work at the NEFSCUN explored my capabilities deeper, made me more enduring, compassionate as I pushed myself like a bull and capaciated on the dimensions of the strategic business endeavors of the credit unions, ventured out innovative management practices like enrollment in Social Security Fund to all staffs, expanded the horizon of amity and enriched international relations. I was neither complacent nor complaining about my responsibilities.

What I found is that some leaders and management professionals are bewildered regarding the essence of the cooperative, its functioning, governance and institutional mechanism. What must not be forgotten that cooperative is a means to an end not an end in itself. Cooperators have to give due consideration to professionlism which must have a good portion of distinct organizational ethos and ethics intermingled. The cooperative sector has marked differences with the private sector and the above-mentioned elements are the traits that separate it with the later which must be understood by the leaders.

I am of the opinion that still board of directors must be reminded constantly that volunteerism must be in their DNA. They have to embed and live up to cooperative spirit that every penny spent, is the hard-earned money of the members' and be flexible enough to adapt to the all sorts of creative innovations without meddling in the day-to-day affairs of the administration. The clear line of demarcation between the board and the management, as taught repeteadly by the mentors, must be distinctly practiced. Practice what you preach and preach what you can practice.

Cooperative sector is a university of learning cooperation, coordination, leadership, socio-economic change, cultural transformation, etc. Cooperativism is not only a philosophy but a practice. It has to be practiced to comprehend in a better fashion. It is not an exaggeration that there are lucid derailments, detachments and deviations in running a cooperative organization from its core doctrines. As a result, divisions are seen, fingers have been raised on prudential governance practices and fiduciary obligations. What must be taken into account that a self-governing sector gradually developing itself as a separate academic sector doesnot entertain micromanagement and unwanted interference from the regulators. On the other hand, due to multiple cases of mismanagement and wrongdoings, there is an apparent threat looming over its autonomy. There must be uniformity in understanding among the stakeholders, members, board of directors, civil society and media in terms of how a cooperative or a financial cooperative should run what are the demarcations and limitations and how the challenges and risks be tackled?

As an outsider, one perceives it as a highly professional federation, but being a part of it for several years blurs the very perception. NEFSCUN board and the management need to nurture professional organizational essence in deeper and authentic sense. The dearth of professional culture impedes organizational progress both inwardly and outwardly. Likewise, the walls of division and disparity created as a result of the political strings attached in regard to the board of directors' election is another key concern for the federation with rich legacy if it wants to keep going stronger and smarter. The human resource might be diluted if the board of directors see the former with ideological spectacles. Lacklusture in internalization of innovative technology is another hindrance in its' journey.

If we keep aside the few shortcomings, it has undoubtedly earned high regards in the fraternity. NEFSCUN is not just a federation, but a philosophy, it is not only an office with materialistic possessions, but a deep sense of spiritual awakening and not only a place to bulid a portfolio, but a common platform to resolve issues that affect majority of minds. It is forum for discussions and deliberations, debates and discourses grounded on universally accepted principles, norms and values. It has been rendering quality services to its members through 186 staff stationed around 40 offices spread across the country and mobilizing 202 milion USD. Its strength has grown by leaps and bounds. It has spearheaded the campaign of bringing the best minds together in succesffully organizing SACCOS SUMMIT, CEO Workshop, National Workshop on Women and Account Supervisory Committee, etc and achieving several milestones.

Moreover, the cooperative sector, as a whole, has been recognized as a key actor of meeting development goals set by the United Nations by 2030 and NEFSCUN is delighted to play its part in the 'Agenda 2030'.

To be precise, carrying out the plans, programs in order to meeting the desired goals of the 5th strategic plan should be its prime foucs. E-governance, superivision and live monitoring, facilitation in merger and acquisition, visible contribution in carrying out cooperative social responsibility, establishing central liquidity fund and solidarity fund must be met at any cost in the near future. In the similar manner, to address the emerging issues of digitization, digitalization, digital inclusion and digital transformation, cyber security, data confidentiality, NEFSCUN has embarked on a journey of revolutionizing the software system by focusing on enterprise resource planning (ERP) but it is to be seen when it will start functioning in full phase. First phase of work has been completed and it has to put its all might to get it going uninterrupted.

I personally feel, a separate unit has to be set up in NEFSCUN to oversee issues not limited to financial risk analysis, monitoring and management, battling other risks like disaster risk reduction, efficacy of business continuity plan (BCP), treasury and fund management, etc along with the inputs from the industry experts in order to maximize the utilization of available resources for organizational benefit. Unfortunately, it could not be put into effect. Similarly, for strength and sustainability of competent leadership, a system of fit and proper test has to be implemented. Meritocracy, not kakistocracy, must win during the leaderhip-election. Members are masters so their ownership must be genuinely reflected in actions not merely in words. Succession plan, talent management, expert inputs, owning trademarks, copyrights and intellectual property rights of its business solutions for translating into income avenues, etc are some issues tha must be looked into. One thing that mustn't be missed out is that the unified directives issued and amended annually by the apex body has not been completely complied by the member organizations. Stringent measures have to be taken to those who do not abide by the rules, regulations, guidelines, directives, principles, norms and values.

Concludingly, it needs to spend time and energy on research and development, inculcate moral and ethical culture, live by the cooperative act and regulation in letter and spirits and do meaningful work in entrepreneurship development and promotion utilizing its strength of network management. In order to meet the goal of Shared Network of Sound and Sustainable Financial Cooperatives, NEFSCUN has to take the lead role in bringing the stakeholders in a roundtable and help them reaching to a consensus regarding the above-mentioned issues to streamline the credit union movement.

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