KATHMANDU, July 12: The 59th annual report of the Office of Auditor General (OAG) has pointed out that 491 of the 753 local governments across the country have illegally distributed Rs more than Rs 886 million to various individuals and organizations.

In the fiscal year 2077/78 BS, the local units have arbitrarily distributed nearly one billion rupees to various individuals and organizations in the name of financial assistance.

There is no provision in the Local Government Operation Act, 2074 BS to allow the distribution of financial assistance, donations, prizes and institutional grants from the local level funds. The local units, on the other hand, have been flouting the law and arbitrarily giving away money in the name of financial assistance.

According to the report, 207 local units have distributed over Rs 317 million without even formulating a procedure for the distribution of financial assistance. "As there is no legal provision to provide financial assistance to such organizations, unproductive financial assistance expenditure which is against the law should be controlled," the report said, “As many as 231 local governments have provided Rs 1.34 billion to various cooperatives illegally.”

In the financial year 2077/78, the local units  had set a target of mobilizing Rs 203.17 billion through internal income. During that period, the local units were able to mobilize 90.88 percent of the total target, i.e. Rs 184 billion. This year, out of the 753 local levels, the books of 744 local units have been audited. This year, 19 local units have spent Rs 6.77 million as festival expenditure against the law. Similarly, 22 local units have spent Rs 6.49 million on office uniforms illegally. It has been pointed out that 201 local units across the country have illegally spent Rs 99.8 million on transportation and monitoring, which too is against the law.

In the financial year 2077/78, as many as 155 local governments have spent over Rs 39 million on meeting allowance against the law. Similarly, 232 local units across the country appointed private secretaries and advisers and paid over Rs 102 million as wages. The 59th report of the Auditor General suggested that such expenditure should be controlled. As many as 512 local units across the country have spent more than Rs 6.2 billion on salaries and allowances for employees appointed on contract contrary to the law.

The 59th report of the Auditor General suggested that such expenditure should be controlled. As many as 523 local units across the country have spent over Rs 3.69 billion for purchasing goods and services without calling for competitive bidding. 

According to the report, 264 local units have spent over Rs 1.31 billion by appointing more people than required. Likewise, 279 local levels across the country have spent over Rs 556.8 million on employee incentive allowances without making laws.

In the fiscal year 2077/78, as many as 184 local units  purchased vehicles worth over Rs 374 million against the law. In the guidelines issued by the Ministry of Finance, 2074, it is stipulated that vehicles cannot be purchased for the regular purpose of the office in the budget provided by the Government of Nepal. The local governments have been instructed to control such illegal spending. The report of the Auditor General's Office has pointed out that 114 local bodies across the country have p[rovided over Rs 172 million to 319 profit-making organizations.

School closed: Lunch expenses Rs 580 million

Even when schools were closed due to Covid-19, as many as 192 local bodies spent over Rs 589 million on midday meals without verified attendance records of students. In the program implementation manual, there is a provision to write the cost of mid-day meals based on the attendance of the students. According to the report, 216 local governments have spent over Rs 65 million by issuing two or more identity cards to beneficiaries with the same citizenship and date of birth.

 
• OAG
 
• financial_irregularities
 
• local_level