Transporters get five more months to come under Companies Act
July 21, 2018 02:54 AM NPT
KATHMANDU, July 20: Amid concerns that the government may go back on its decision to end public transport syndicate, the government has decided to initiate the process of scrapping all the organizations and committees set up by transport operators and also bring all the properties owned by such organizations under the ownership of the government.
However, the government has given till mid-January 2019 for transport operators to register their businesses under the Companies Act.
A joint meeting of the Ministry of Home Affairs and the Ministry of Physical Infrastructure and Transportation held on July 16 decided to implement the government's earlier decision to stop renewing the committees and organizations established by transportation operators under the Associations Registration Act 1977 but also initiate the process to bring the properties owned by the committees under government ownership. The Home Ministry made public its July 16 decision public on Friday.
Earlier, the government had maintained that all transport operators should come under the Companies Act by mid-July but now it has given them five more months.
As there are over 300,000 public vehicles across the country and that transport operators requested more time to register under Companies Act, the government decided to give them five more months.
-- Kiran Bhattarai, press advisor to the home minister
Kiran Bhattarai, press advisor to the home minister, confirmed the decision.
“As there are over 300,000 public vehicles across the country and that transport operators requested more time to register under Companies Act, the government decided to give them five more months,” he said.
According to the transport ministry, there are about 245 committees or organizations of transport operators across the country. The home ministry and the transport ministry will work jointly to bring the committee's movable and immovable properties under government ownership.
In May, the government had frozen bank accounts of all the transport committees. Later, the home ministry had directed the district administration offices across the country to collect details of movable and immovable properties owned by such committees.
Although the district administration offices have already submitted the property details to the ministry, the ministry has not yet made public the property details and how much money such committees have in various banks.
As per the latest decision, the government has decided to issue a 35-day notice to transport operators to submit details of their financial liabilities to various various parties including road accident victims, public utilities, and administrative expenses among others. After receiving the details, the government will make payments to the transport committees to pay their liabilities.
Last week, Prime Minister KP Oli had summoned Transport Minister Raghubir Mahaseth, Secretary Madhusudan Adhikari and other officials of the ministry to his office after the ministry failed to make 'visible impact' and provide relief to the public even after two months of the government's move to end the transport syndicate.
Similarly, the home and transport ministries have decided to implement recommendations made by a taskforce with regard to implementing all the provisions envisioned in the existing laws like reservation seats in public vehicles, safety provisions, and dress code for drivers and bus helps, among others.