Civil Aviation Authority decision to distribute bonus controversial

Published On: January 10, 2017 08:10 AM NPT By: Susheel Bhattarai  | @sushbhattarai


KATHMANDU, Jan 10: Civil Aviation Authority of Nepal (CAAN) has made a controversial decision to distribute bonus to its 800 staffers. 

The civil aviation regulator has allocated Rs 532 million to distribute bonus.

The board of directors of CAAN took the decision, stating that the authority has been logging profit on a regular basis. 

CAAN has already forwarded the decision to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) for approval. The authority will also have to get approval of the finance ministry after MoCTCA gives its nod.

The Minister for Culture, Tourism and Civil Aviation chairs the board of CAAN.

The decision is controversial as the same person chairs the board of CAAN and helms the MoCTCA.

A senior officer of the tourism ministry said a regulatory body should not be allowed to involve in profit-generating works. “It's an immoral act,” the officer added.

CAAN has been posting profit on a regular basis since Fiscal Year 2006/2007. The board of CAAN has decided to distribute bonus from profit generated from Fiscal Year 2011/2012 to 2014/2015. 

The authority has distributed Rs 1.47 billion cash dividend to the government in the past three fiscal years, according to CAAN officials. 

CAAN plans to distribute bonus in two phases. According to CAAN officials, 70 percent of the bonus will be deposited in its staffers' Employees Provident Fund and the remaining 30 percent will be distributed to the employees. 

Around Rs 159 million will be distributed to 800 employees of CAAN. Each employee will pocket an average of Rs 199,062.

CAAN has been taking loan from the government and donor agencies to implement its projects. Data shows that CAAN has taken loan of around Rs 115 billion in the last five years. 


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