During 2004-2005, NA provided security to Nepal Telecom´s base towers located in remote areas, Nepal Oil Corporation´s depots, Nepal Rastra Bank premises and infrastructures of Nepal Electricity Authority and then Nepal Water Supply Corporation.[break]
According to the report of the Office of the Auditor General, among the five institutions, while one owes Rs 43 million, other two owe the army Rs 37 million.
The cabinet in January 2004 had decided that the government and security recipient agency would have to bear 50 percent each of the total administrative expenses continuously for a 10-year period for army security.
However, another cabinet decision in July 2004 stated that the agencies concerned would have to pay the 50 percent of the total cost for army security only if the agencies themselves had wanted army security. Else, the government should bear the total security expenses, the cabinet had decided.
"It has become difficult to get back money from such institutions given flawed decision by the government," read the AG report.
The report, presented at the parliamentary accounts committee, added that NA was unable to receive the money from the institutions this year as well despite the former´s claim that it has written repeated correspondence with the service-seekers for payment of the dues.
Responding to the AG Office´s report, the PAC has directed the NA to collect the dues from three institutions within three months.
Meanwhile, the House committee has also directed the Ministry of Defense (MoD) to settle the MA-60 aircraft deal with the Chinese supplier within three months.
The PAC took a decision to this effect after Naveen Kumar Ghimire, secretary at the MoD, informed PAC members that a team had been formed for negotiations with the Chinese company and invitation sent to the company representatives for talks.
The ministry, on March 1, 2006 had sent Rs 395 million [20 percent of the total amount] as lock-up money to the Chinese company to purchase two MA-60 aircraft. Although the two aircraft were supposed to be delivered to Nepal separately after 12 and 18 months of the agreement, neither the aircraft nor the money has been received as of yet, the AG report states.
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