It also instructed the government to swoop down on civil servants who facilitated and supported the network marketing company that illegally raked in over Rs 4 billion from some 375,000 Nepalis, promising them insurance, banking and free medical services, without due legal approval.[break]
The lawmakers in the PAC had grilled the ministers, secretaries and senior officials of Ministry of Industry, Ministry of Commerce and Supplies, Ministry of Home and Ministry of Finance in a series of meeting over the past few weeks. After concerned government and regulatory authorities admitted that ULI had undertaken its activities flouting all financial laws and regulations of the country, the lawmakers issued a strong-worded decision, asking concerned government agencies not to exhibit laxness in taking action against wrongdoers.
PAC also asked them to regularly brief the committee about the actions and steps it takes in connection to ULI on a fortnightly basis. The lawmakers also lambasted the government for opening the network marketing business for different products without formulating due legal framework to monitor and punish them. The Ministry of Commerce and Supplies (MoCS) had opened the business just on the basis of a directive.
Consumers´ rights activists had challenged the move, citing that the decision of MoCS went against the law. They have long been demanding the government either ban network marketing completely or regulate it strictly by enacting a separate law.
In this connection, PAC on the day also asked the government to conduct a study on whether to let the business continue in the country. If the study supports opening the doors to the business, PAC has asked the government to formulate appropriate Act and submit it to the committee.
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