“Distributing bonus in accumulated loss situation is a gross case of financial indiscipline. We are soon issuing instruction in writing to the government to amend the Act,” Bhagawati Kafle, secretary of CIAA, told Republica on Monday.[break]
Earlier, Ministry of Finance too had requested the Labor Ministry to amend the provision, as it not only contradicted with prudent financial norms but has also been creating undue tension between the trade unions and management in the PEs.
The latest example of the problem was seen in Nepal Oil Corporation (NOC), where two trade unions demanding bonus brought imports and sales of fuel to a grinding halt, even as the corporation´s accumulated loss stands at around Rs 8 billion and debts worth Rs 11 billion.
In the past, staffs of Rastriya Banijya Bank (RBB) too had legally won the bonus based on this provision of the Act.
CIAA has yet again instructed the government not to allow PEs suffering cumulative loss and huge debt distribute bonus to its employees. CIAA officials said the instruction was issued again as the agreement that NOC board and agitating workers signed created confusion among different agencies.
In the agreement, NOC board had scrapped its earlier decision to stop bonus distribution and agreed to take decision on it based on the prevailing laws. But because there is a precedent of Supreme Court giving verdict in favor of workers in a similar case of RBB, experts had interpreted the agreement as a decision of the board to distribute bonus to the staffs.
During a meeting with CIAA, NOC Chairman Purushottam Ojha later clarified that such agreement was signed just to pacify agitating trade unions.
“Clearly, the agreement has confused many. Hence, we have instructed the government yet again not to distribute bonus to NOC or staffs of any other PEs suffering accumulated loss,” said Kafle.
CIAA has further said that the consent of NOC board to revise loss limit for its depots, which gives impression that its present loss norms is not realistic, will not impact investigations that it has started on leakages at the corporation´s depots.
“The cases will be investigated based on the existing loss standards. The NOC management´s decision to revise it will not help wrongdoers walk free,” said Kafle.
CIAA is presently investigating on two cases of leakages at NOC depots. First is related to Dinesh Yadav, his deputy and a set of 19 staffers at Amlekhgunj, who were suspended by NOC on charges of inflicting loss worth Rs 29.2 million to the corporation. CIAA said it is close to filing a case against them. It is also investigating on losses recorded at all NOC depots in the last fiscal year.
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