KATHMANDU, June 28: Kathmandu Metropolitan City (KMC) Mayor Balendra Shah (Balen) distributed over Rs 121.5 million to various institutions, foundations, and organizations during his first year as the mayor of Kathmandu Metropolitan City.

In the fiscal year 2022/23, Balen allocated this amount as a grant to those institutes, foundations, and organizations. Balen was elected as the mayor of Kathmandu Metropolitan City (KMC) in the local elections held in May 2022. As an independent candidate, Balen won the election with 61,767 votes.

Balen presented the first budget of KMC on June 24, 2022, after being elected as the mayor. In the Municipal Assembly, Deputy Mayor Sunita Dangol presented a budget of Rs 25.41 billion for KMC that year. Out of that amount, Balen distributed Rs 121.5 million to institutions, foundations, and organizations operated in the name of prominent leaders.

In the final audit report of the fiscal year 2022/23, the Office of the Auditor General raised questions regarding the amount distributed by the KMC mayor. According to the report, the grants were distributed to foundations and other organizations established in the names of about 100 individuals, in line with the programs of the federal and provincial governments and the policies and programs approved by the municipality in the fiscal year 2022/23.

The report mentioned specific grants, including Rs 3 million to Madan Bhandari Sports Academy, Rs 120 million to B.P. Koirala Foundation, Rs 120 million to Pushpalal Memorial Foundation, and Rs 120 million to Ganesh Man Singh Foundation. Similarly, it showed Rs 120 million grants to GP Koirala Institutes, Rs 120 million to Sushil Koirala Institute, Rs 7.5 million to Ramraja Prasad Singh Institute, Rs 7.5 million to Gajendra Narayan Singh Institute, Rs 7.5 million to Post Bahadur Bogati Foundation, and Rs 6 million to Mahendra Narayan Nidhi Smriti Institute in the fiscal year 2022/23.

In the same year, Rs 7.5 million were granted to Martyrs’ Foundation Nepal, Rs 7.5 million to Martyrs’ and Disappeared Warriors Children Foundation Nepal, Rs 7.5 million to Indreni Cultural Development Center, and Rs 7.5 million to Pragya Smriti Foundation Chitwan.

These are just a few examples of grants distributed to institutions, foundations, and organizations in the first year of Balen's tenure as mayor. Some of these funds have been provided to institutions and foundations that have acted against the law. Those who received grants to build structures proceeded without even passing a map from the KMC.

The Auditor General stated in his report, "Some foundations and institutions have taken grants for building construction, but the maps have not been passed in accordance with the prevailing legal regulations and building code."

According to the Office, the KMC has not conducted effective monitoring to ensure the proper use of granted funds to foundations, institutions, and organizations established and operated in the name of individuals who have made significant contributions to the country and society.

The Auditor General has clearly stated in the report, "It has shown the necessity and justification of allocating grants to institutions, foundations, and organizations opened in the name of various individuals from the limited financial resources of the federal, state governments, and the municipalities."

The Auditor General has recommended taking action against those who construct buildings without approving the map from KMC and reviewing the grants system. The Auditor General emphasized in the report, "It appears that such structures constructed without the approval of the KMC should be subject to legal action and emphasizes the need for review regarding the necessity and justification of funding such systems by utilizing the state’s limited financial resources along with the availability of subsidies through public funds."

 
• Auditor_General