KATHMANDU: Reckless tendency of the Government of Nepal to set up funds of different nature has not stopped even today. Prime Minister K P Oli in his previous term had set up a fund termed as ‘I shall build up my own Dharahara’.

Another fund called ‘Social Security Fund’ was also launched with much fanfare as a kind of national celebration by the government. As many as 65 such funds established by the government are running into disuse without putting them to right use in right manner at right time.

For last several years a fund meant for reconstructing Budhi Gandaki by depositing tax money exacted from sale of fuels is lying dormant. A Pollution Control Fund is also opaque showing no debit and credit record in a transparent manner.

Office of the Auditor General says that at least 21 government agencies (and/or departments) have established no less than 65 funds in different names for different purposes but their work has not taken off as per the objectives and goals mentioned in the these funds.

Even financial expenditure within the funds and expenditure made on different headings have not been transparent and clean. Bishnu Prasad Rijal, spokesperson at the Office of Auditor General, says that despite repeated inquiries made to the government agencies with regard to these funds, no satisfying answers have come forth.

In its 56th annual report submitted by the Office of Auditor General, the schedule referring to operation of the government funds highlights the existence of not less than 65 funds floated by as many as 21 different government agencies (or departments). A total of Rs 100 billion and Rs 530 million was credited (or deposited) to these funds last year.

Further, a total of Rs 260 billion and Rs 900 million was deposited across these funds in last to last year. Combined together, a whopping amount of Rs 374 billion and Rs 350 million was available with these government sponsored funds, out of which Rs 264 billion and Rs 810 million was shown to have been spent. There is still staggering amount of money amounting to Rs 109 billion and Rs 450 million left with these funds. The fund operators went beyond their given authority to spend more than what was required and hence a large part of these funds have gone to become arrears in audit report.

Most of these funds were set up by the government by keeping a specific purpose in the mind but tragedy is that no blueprint was prepared as to how to operate these funds. Finance Minister took note of this anomaly and wrote to concerned ministry under which these funds have been set up to immediately take action in the matter.

However, recommendation made by the Ministry of Finance on Shrawan 30, 2065 is still pending with the government with no signs of correcting the anomaly existing in the functioning of these funds. Spokesperson Rijal reveals further that the Parliament Development Fund is disbursing millions and billions of money without having a blueprint of its modality of operation.

More than Rs 530.3 million has been lying in disuse for last several years distributed among important funds relating to peace, technology development, construction campaign, information department and others, says the Office of the Auditor General.

The capital accumulated by these funds received from the government, personal contribution institutional help and foreign grants is all frozen and hence locked without being spent on building essential physical infrastructural base within the country, cautions noted economist, Chandra Mani Adhikari, suggesting further, ”These kinds of inactive funds must be discontinued and de-regularized in the absence of clear-cut operation rules regarding how and where to spend the money.

If not, the tendency of embezzlement and corruption will overpower both high-officials and ministers to divert the fund for their own personal and party interest. Transparency and accountability with clear rules of operationalizing the fund will check such tendency.

Myriads of Funds

Just look at the government-operated funds running in opaque manner without transparency and accountability: Welfare Fund for Nepal Army, Police and Armed Police Force, Social Security Fund, Prime Minister Relief Fund (under the PM Office), Natural Disaster Relief Fund (under Home Ministry) and District Education Fund (even after District Development Committee has been discontinued).

The staggering Rs 468.6 million is lying in total idle (likely to be disused) with District Education Fund. Peace Fund created in 2065 BS under the supervision of PM office received Rs 14 million from Asian Development Bank (ADB). However, the government has no other option except to return the money to ADB in absence of concrete road-map of spending it.

Auditor General has hinted at misusing the huge amount of money to the tune of Rs 22 billion from Social Security Fund. The interchange of important funds of public importance has raised the possibility of rampant misuse of deposited money. For example, Social Security Fund transferring the money to Consolidated Fund and balancing the difference in the book of accounts raise the arrears thereby fudging the entries and financial data, says Rijal.

Across different 21 government agencies, a total of Rs 109.5 billion is locked in myriads of funds, says the Office of the Auditor General. Out of the total sum, more than Rs 530 million has been lying dormant – totally unproductive. The then Prime Minister Dr Babu Ram Bhattarai started ‘New Nepal Fund’ under the direct supervision of Nepal Planning Commission (NPC) on Falgun 1, 2069 by depositing his 15 days salary to launch the fund. Some of the employees had also contributed to this fund.

The Fund operating under NPC by 2073 BS was running in financial stress as it owes Rs 101.53 million and need to pay the said amount. This Fund, because of political and administrative negligence, is almost defunct and is on verge of being discontinued. Nobody is there to explain why money of the fund was spent without specifying the title or heading.

The Fund is still in operation at least on paper. Similarly, Child-labor Elimination Fund and Fund for Development of Children and their Rehabilitation are registered under the Ministry of Labor, Employment and Social Security. Here again, hundreds of millions of rupees are parking without being spent on stated purposes of child welfare and children development. There is no body to answer why the government has allowed the large sum of money lying unused defeating the very purpose for which the fund was created.

The government created a fund to help Nepalese workforce aspiring to go abroad in search of employment and for those who are victims of terror-related crimes. These funds were built up by taking loans from the banks. There is no account of Rs 10 million as the fund was misused for personal gain. Several millions were disbursed from this fund in the name of helping the Nepalese workforce sending remittances from foreign lands to Nepal without making proper entry.

Underhand operations to fudge the amount spent under this fund is feared to have taken place and is also taking place even as this report is being written here. Auditor General has further reported that Rs 170 million was parked with ‘Mobile Veterinary Services Fund’ and just Rs 5.8 million is left with the fund meant for addressing the relief work at regional level. It is surprising that Prime Minister has no knowledge about the operation of this fund.

The report submitted by the Auditor General says that the greatest chunk of money is lying with the office of the Prime Minister and the greatest degree of irregularity and abuse of fund has also happened in all those funds functioning directly under the supervision of PMO (Prime Minister Office). Even details of expenditure made by the fund meant for providing relief to victims of natural disasters are all hazy and incomplete.

The Home Ministry has never bothered about this kind of lack of transparency in funds operating under its supervision. The fund for rehabilitating the children working as labor by funding their education has failed to meet its purpose as the interest earned by this fund has not been able to rescue the children employed in carpet industries from all across the country.

Two funds namely ‘Child-labor Elimination Fund’ and ‘Children Development cum Rehabilitation Fund’ are operating under the supervision of Ministry of Labor, Employment and Social Security. After framing the rules for operating these funds, the management of these funds are in poor condition. The deposited amount in both the funds are going waste as no targeted purposeful expenditure has been made as of now.

Similarly, girl students of community schools and other targeted children of school-going age are not receiving any help from the government as more than Rs 560 million have been held, which was to be spent on them. Same way, about Rs 13 billion parked with Rural Telecommunication Fund, Rs 190 million with Forest Development Fund and Rs 6 billion with ‘Employment Welfare Fund’ are lying idle in disuse. Timber merchants have been depositing money with the rate of Rs 5/cube feet to ‘Forest Development Fund’ since 2064 BS.