KATHMANDU, Sept 5: Every day, tens of millions of rupees are being deposited into the Prime Minister’s Disaster Relief Fund for the rescue and relief of victims of the catastrophic Bhotekoshi flood. So far, the fund has collected more than Rs 7 billion, with donations continuing to pour in from within Nepal and abroad.
But where does all this money go? Is it spent exclusively on Bhotekoshi flood victims, or can it be used for disasters elsewhere?
The Office of the Prime Minister and Council of Ministers (OPMCM) has opened nine separate bank accounts to collect donations for Bhotekoshi flood victims for deposit into the Prime Minister’s Disaster Relief Fund.
Pradip Kumar Koirala, a joint secretary at the Ministry of Home Affairs (MoHA), said the government has decided to use the funds raised this time for the relief and rescue of flood victims in the five affected districts.
“This time, it is the government’s policy to spend the funds collected only on flood victims in the affected areas,” Koirala said. “That is why we have opened a separate account to collect funds for the rescue and relief of Bhotekoshi flood victims.”
Under the law, a Prime Minister’s Disaster Relief Fund Management Committee can operate under the OPMCM, while a Central Disaster Relief Fund Management Committee can operate under the MoHA.
Money and life
The Prime Minister’s Disaster Relief Fund is a permanent fund. Before the Bhotekoshi floods, it had around Rs 2.17 billion in its coffers.
The fund is governed by the Prime Minister’s Disaster Relief Fund Operation Regulations, 2063 BS. Under the regulations, the vice-chairperson of the National Planning Commission serves as the coordinator of the fund’s management committee.
Secretaries from the ministries responsible for federal affairs and general administration, home affairs, health, infrastructure development, agriculture, and forests and environment serve as ex-officio members of the committee.
Following the Bhotekoshi floods, the fund’s management committee decided to immediately release Rs 1 billion for the affected areas.
According to MoHA sources, the National Disaster Risk Reduction and Management Authority (NDRRMA) has already distributed funds received from the Prime Minister’s Disaster Relief Fund to 15 local governments in Rasuwa, Nuwakot, Dhading, Gorkha and Chitwan.
“We have released the funds based on requests from the local governments,” Koirala said. “We are receiving money from the Prime Minister’s Disaster Relief Fund as requested. We took Rs 1 billion in the first phase and will seek additional funds as needed.”
According to the NDRRMA, Rs 10 million has been allocated to Rasuwa, Rs 10 million to Nuwakot and Rs 5 million to Dhading, while Rs 135 million has been distributed among the 15 affected local governments.
A damage assessment committee coordinated by National Planning Commission Joint Secretary Arjun Bhandari has identified the affected local governments as Gosainkunda, Kalika, Aamachhodingmo and Uttargaya in Rasuwa; Belkotgadhi, Bidur, Kispang and Tarakeshwar in Nuwakot; Benighat Rorang, Gajuri, Galchhi and Siddhalek in Dhading; Gandaki and Shahid Lakhan in Gorkha; and Ichchhakamana in Chitwan.
Can the money be used for other disasters?
The regulations distinguish between the two disaster relief funds in terms of how they can raise and receive money.
The Central Disaster Relief Fund Management Committee cannot independently raise funds or solicit donations for disaster victims. Its only source of income is money received from the Prime Minister’s Disaster Relief Fund.
The Prime Minister’s Disaster Relief Fund, however, can seek assistance from different sources and remains active on a permanent basis. It can also seek donations for specific emergencies, as it is currently doing for Bhotekoshi flood victims.
Importantly, money deposited in the Prime Minister’s Disaster Relief Fund for one stated purpose can legally be used for another disaster if the need arises. For example, funds raised for Bhotekoshi flood victims could also be used to assist landslide victims elsewhere.
“Therefore, this time, it is the government’s policy to spend the money collected for the purpose for which it was raised,” a MoHA official said.
