KATHMANDU, Aug 18: The Forest Development Fund, established to bolster the growth, safeguarding, backing, and advancement of forested areas, has amassed a substantial sum of one billion rupees. Despite this accumulation, the allocation has regrettably not been directed towards its intended goal of enhancing and fostering the forestry sector. The Department of Forest reveals that this fund has remained untouched over the past four years.

Shiva Wagle, the member secretary of the Forest Development Fund and Director General of the Department of Forest, brought to light the fact that the accrued funds have remained untapped due to the absence of a defined procedure for their utilization. He conveyed that the Department has successfully formulated a procedural framework, which is poised for submission to the ministry in the imminent days. "The Ministry holds the prerogative to submit this framework to the Council of Ministers or even endorse it independently. Upon its ratification, the amassed funds from the forest development initiative will finally be harnessed," he affirmed. Wagle expounded that these funds currently lie within the bond account of the Treasury and Accounts Controller's Office of the Department of Forest.

Under Secretary Bhavraj Joshi confirmed that approximately one billion rupees has been accumulated in the Forest Development Fund. Pertinently, the 59th annual report from the Office of the Auditor General has scrutinized the lack of resource utilization originating from the Forest Development Fund. The report highlights that the funds have been channeled into an inactive state within a private sector commercial bank, within the operating fund account since March 10, 2022.

The Forest Department elucidates that the statute mandates the accumulation of funds from three distinct forest categories to be directly channeled into the Forest Development Fund. In scenarios where land is occupied instead of forested regions, an equivalent land allotment is prescribed. In cases where this provision cannot be upheld, the law stipulates the disbursal of compensation to the government, which then finds its home within the fund. Likewise, the law mandates that for each tree felled within a forest area, ten new trees must be planted. However, in cases where tree plantation becomes unviable, the monetary equivalent of the reparation is earmarked for the government account, ultimately to be channeled into the Forest Development Fund. Furthermore, it is established that any earnings derived from government-led carbon trading endeavors are designated for deposit into the fund. Wagle, however, conveys that the Fund has not received any such carbon trading revenue due to the current absence of carbon trade activities. The Forest Development Fund's monetary inflow adheres to two distinct channels, as described by Wagle.

According to the existing legislation, any destruction of forests and vegetation during the construction of infrastructure must be offset by reforestation and careful management, ensuring that the overall forest area remains intact. Despite this legal provision, concerns have been raised by the Office of the Auditor General regarding the failure of various organizations involved in constructing physical structures to contribute to the Forest Development Fund. Moreover, there appears to be a lack of effective monitoring in place for this issue.

In the latest report from the Office of the Auditor General, the 60th edition, it is disclosed that out of a total of 691 organizations, only 19 have reported compliance with the requirement to allocate forest area rights in the fiscal year 2022/23. Consequently, a substantial sum of Rs 1.35 billion is yet to be deposited into the Forest Development Fund from these organizations. The remaining 672 institutions have drawn the attention of the Office of the Auditor General, which has urged the Department of Forest to secure comprehensive details and ensure the timely deposit of the stipulated amounts into the Forest Development Fund.

The Forest Regulations of 2079 BS outline the specifics of the Forest Development Fund. As per these regulations, the Ministry of Forestry's Secretary assumes the role of the chairman for the Fund, while the Director General of the Department holds the position of member secretary. The legislation also dictates that the Fund should comprise 13 members. However, the Department reports that only a single Fund meeting has taken place thus far.

 
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