In an era where financial prudence is crucial, it is concerning to witness the government allocating significant funds to maintain two separate entities dedicated to ship management. Despite the absence of ships operating within Nepal, the Waterway Project and the Nepal Shipping Office continue to incur substantial annual expenses, amounting to over Rs 90 million a year. As a newspaper, we urge the government to reassess the expenditures being made in the name of ship management and take appropriate decisions. The Waterway Project, operating under the Ministry of Physical Infrastructure, comprises a team of technical staff led by a Joint Secretary, with its project office based in Singha Durbar. However, the establishment of a separate Nepal Shipping Office in the landlocked country, initiated by former Prime Minister KP Sharma Oli in 2075 BS, has raised concerns about redundant structures within the ship management sector.
Thoughtful and gritty
Regrettably, since its inauguration, the Nepal Shipping Office has failed to engage in any ship-related activities. Instead, it has allocated a significant budget of Rs 14.3 million for the purchase of two expensive vehicles, a questionable decision given the absence of operational ships in Nepal. It is crucial to scrutinize such investments, particularly when they appear to prioritize unnecessary expenditures over more pressing needs. Even before the establishment of the Nepal Shipping Office, the Waterway Project was responsible for conducting feasibility studies for ships. Considering the lack of ship-related operations, allocating funds for capital expenditure within the shipping office raises valid concerns about financial mismanagement and a skewed allocation of resources. While the government has allocated a budget of Rs 82.9 million for the shipping office and Rs 4.8 million for waterway projects in the fiscal year 2022/23, it is disconcerting to note the absence of capital expenditure allocation for the Waterway Project, which raises questions about budgetary priorities.
The Office of the Auditor General's 59th report sheds light on several issues plaguing the Nepal Shipping Office. Notably, no organization has been registered to oversee transportation operations on rivers within Nepal or the operation of ships outside the country, signaling a lack of regulatory oversight. Moreover, the report reveals that the procurement of consulting services for the feasibility study of ships resulted in excessive expenses, surpassing the approved rate. This financial burden amounts to an additional cost of Rs 1,058,000, underscoring the need for improved financial management and accountability. In light of the absence of operational ships owned by Nepal, it is imperative for the government to reevaluate the necessity of maintaining two separate ship management entities. The financial burden imposed by the Waterway Project and the Nepal Shipping Office, amounting to over Rs 90 million annually, cannot be justified when there are more pressing needs in other sectors. We urge the government to prioritize responsible governance and prudent financial management by curtailing unnecessary expenses and reallocating resources to areas that require immediate attention. Any such decision should be guided not by emotion or political considerations, but by prudence.
