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VOL. 27, NO. 47, August 08 , 2008 (Shrawan 24 2065 B.S.) |
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GOOD GOVERNANCE
Rhetoric
Vs
Reality
If the Auditor General's Annual Report 2007 is any indication, it reveals the rampant irregularities in the government annual spending and misuse of government resources. It also indicates that even donor countries have been spending money in unaccountable manner. A question raised regarding the expenditure by Commission of Investigation of Abuse of Authority (CIAA), an anti-corruption watchdog, has raised the eye brows. In the name of anti-corruption drive, many agencies including government and foreign donors have spent millions of rupees. So far as transparency of the expenditure is concerned, it is controversial. In its three consecutive annual reports, Auditor General has raised the question regarding the fairness and transparency of expenditure spent by CIAA and donor communities in good governance
By KESHAB POUDEL
From western donors to Nepal's intellectuals and politicians, the slogan for good governance - which includes clean administration, transparency in financial transactions as well as respect of rule of law in expenditure – remains a popular jargon. In an effort to strengthen the institution for good governance, donor communities supported government agencies, local NGOs and civil society offering millions of rupees.
Along with non-governmental organizations, which are main beneficiaries of donor's contribution, small chunk of funding was also given to various government organizations including CIAA and judiciary. This is the where Auditor General's Report smells something wrong.
Annually, Auditor General hands over its annual report on government expenditure to the parliament and parliament's Public Account Committee spends a lot of time and efforts discussing it. But what one can see in its report is continuation of violation of previous suggestions on expenditure.
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CIAA: Under Scrutiny |
The report pointed out that the funding under technical assistance is not included in the annual budget allocations, there is a lack of transparency in spending of these resources. Although Auditor General has been questioning transaction of these kinds of fund by various government agencies terming them as irregular, nobody has responded to the objections on where and how this fund was spent.
When the Auditor General raised the question on CIAA, which has already filed a number of cases against various government officials on the charges of irregularities, of its transactions received from the donor communities to fight against corruption, it showed that the situation was further worrisome.
Although three consecutive annual report of Auditor General's Annual has been raising this issue, the CIAA and concerned donor agencies are yet to respond to it.
According to Auditor General's Annual Report 2062, under agreements between the government of Nepal and Nepal-based embassies of friendly countries, resources are provided for institutional strengthening of the CIAA.
"These kinds of transactions of money coming under technical assistance are not limited to the CIAA only. You can see this practice is rampant. One of our major concerns is the need to have audited report of such expenditure," said Bacchuram Dahal, acting Auditor General. "The amount of estimation of expenditure was included in white book published by Ministry of Finance but there is no actual auditing of the money."
With the total amount Rs 6,57,33000 including 2,89,8,780 Danish Kroner or equivalent of Rs, 3,28,43,000 and Sterling Pound 207483 equivalent to Rs. 3,28,9000. The amount was not included in a separate book prepared by the government as a part of annual expenditure neither was it audited.
The grant money Rs 3,28,43000 given for consultants and consultancy service and 3,28,9000 for furniture, machinery and travel allowances. According to an agreement, the Commission was supposed to receive Rs.3,81,25000 but the commission received Rs 40,14000 only in the first year.
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Singh Durbar: Central Secretariat |
Under the clause 6 of the agreement DANIDA had to audit the amount from registered auditor but there is nothing to disclose regarding the auditing of British assistance. (Auditor's General Report Part 1 2062 under the heading of CIAA).
Auditor General's Report 2064 revealed that out of total commitment, the CIAA received Rs 1,46, 68000 till 2062 and Rs 24,49000 in the year 2063. Although the money is included in the economic program, it was not audited by Auditor General, the report pointed out.
"The fund was reportedly spent in providing salary to consultants, their allowances and to furnish the office. What we want to know is how the money was distributed and other allowances allocated," said Dahal. "Our aim is clear we want all the expenditure must be spent under parliamentary scrutiny."
Under this funding, CIAA recruited some lawyers, consultants and spent money for media campaign. This is the period when almost all CIAA actions came under legal controversy. Some populist media and NGOs, too, backed the CIAA's so-called campaigns for good governance but what it ruined was self governance.
Despite the vigorous campaign against corruption, Transparency International and UNDP's recent reports indicate that Nepal's overall position is yet to improve in terms of tackling corruption. Of course, Nepal's anti-corruption drive has already rocked the bureaucratic and political system to the extent of running the self and accountable government, there is no sign of receding the irregularities and corruption.
By showing thousands of cases of irregularities in government expenditure and tendencies of violating well accepted norms of financial transaction even by donors and CIAA, the Auditor Gneral's Report 2007 indicate the reality of Nepal.
"After my transfer as a secretary to the CIAA, I have cleared all the dues pointed out in the Auditor General's report. So far as the program under the technical assistance is concerned, there are no such programs now," said Bhagwati Prasad Kafle, Secretary at the CIAA.
CIAA's Move
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CA: Need To Uphold Transparency |
In the last six years, CIAA took drastic campaign against the corruption. CIAA filed a number of cases against corruption between 2060 and 2063 hiring lawyers and consultants from outside including a strong media campaign. However, CIAA lost almost all the cases filed in the court thanks to the lack of evidences.
'We have been pursuing the government to bring all technical assistance in its budget and put it in purview of parliamentary sanctions," said Som Bahadur Thapa, former Secretary at the Public Account Committee of Legislature Parliament.
In many cases, CIAA actions were directed against particular persons related to security agencies including police and home ministry and particular party like Nepali Congress.
According to a noted economist and academician Dr. Diwakar Chand, the action being taken by CIAA is a big joke where till date none of the big culprits have been penalized. Some sections of the political parties have started labelling charges against the CIAA for intentionally targeting those close to Girija (Girija Prasad Koirala, the current PM) panel till he was in the opposition.
Whatever kinds of actions CIAA has taken, it did not make any difference in the area of transparency. Transparency International (TI)'s recent report on most corrupt countries in the world ranked Nepal in 121st position (Rank 1 refers to least corrupt).
International Concern
All the international donor agencies expressed their concernover the need to strengthen the institution and make all transactions transparent. The Asia Pacific Human Development Report on Corruption too suggests similar actions.
Many argue that the lack of coordination between different organizations working in anti-corruption, lack of follow-up and support from the State, lack of strong leadership, lack of transparent mechanisms, a weak judiciary, a culture of promoting impunity, the absence of the rule of law and the lack of implementation of existing laws are key problems for rising corruption in Nepal.
"If the suggestion given by us is followed, more than half of the present cases of irregularities will be cleared," said Dahal. "But nobody is following this including the donors and government agencies in case of technical assistance."
As long as there lacks a system where all are made accountable, the question of good governance will just remain a rhetoric and not become a reality.
