Chief Commissioner of CIAA Expresses Concern Over Growing Influence of Middlemen in Governance

Kathmandu, February 11: The Chief Commissioner of the Commission for the Investigation of Abuse of Authority (CIAA), Prem Kumar Rai, has expressed concern over the increasing influence of middlemen in the country's governance and administration.

Speaking at an event organized here today on the occasion of the CIAA's 35th anniversary, he stated that the public perception is that powerful middlemen have become active in everything from minor administrative tasks to budget formulation, project selection, high-level appointments, ministerial selections, and even government changes over the past few years. He noted that this tendency of middlemen weakens the autonomy of the state mechanism and good governance. "While in the past, middlemen used to facilitate minor tasks in frontline government service delivery offices, the general understanding is that over the last 5-10 years, the influence of powerful middlemen has been growing for budget formulation, project planning, appointments in important bodies, transfers, promotions, ministerial appointments, and even government changes," said Chief Commissioner Rai. "Since the complaint is arising that good governance cannot be established in the state because these very middlemen have taken control of the government and all its bodies, running them at their behest, if state operators fail to prohibit middlemen in all sectors, good governance will remain confined only to slogans."

He clarified that the Commission has continued the objective investigation of corruption offenses and prosecution in the Special Court in line with its constitutional responsibility, and also stated that emphasis is now being placed on preventive and promotional strategies.

He mentioned that the Commission has been fulfilling its constitutional responsibility of objectively investigating corruption offenses and filing cases in the Special Court if corruption is found. Furthermore, following the latest amendment to the Prevention of Money Laundering Act, 2064, the Commission has also been investigating and prosecuting offenses related to the laundering of assets acquired through corruption, as per the provision that the Commission shall investigate offenses related to the laundering of assets acquired through corrupt practices. To control corruption and promote good governance, the Commission has formulated its strategic plan and is undertaking remedial actions in addition to preventive and promotional activities, he stated.

Rai mentioned that the Commission has implemented its Fifth Strategic Plan (2081/82–2085/86) with the vision of 'Building a Corruption-Free and Transparent Public Sector,' which aims to reduce corruption through remedial, preventive, and promotional methods. He claimed that investigations and prosecutions are currently being made effective by prioritizing high-risk areas.

Chief Commissioner Rai also stated that the quality of investigation has been enhanced through improvements in the complaint management system, expert consultation, advocacy by private legal practitioners, expansion of information technology use, innovative investigation methods, and specialized capacity building of investigation officers.

In the last five years, 148,500 complaints have been registered with the Commission. Of these, 107,915, or 72.8 percent, have been settled, it was informed. Over 700 cases have been filed in the Special Court during that period. 137 cases were filed in the fiscal year 2081/82, and 94 cases have been filed so far in the current fiscal year. The Commission stated that in the last five years, claims for compensation for losses to the state treasury have sought an average of over Rs four billion annually.

Highlighting the growing public trust in the Commission, Chief Commissioner Rai claimed that prosecutions are being carried out fearlessly based on evidence against officials at any political or administrative level. Cases related to money laundering are also being filed by the Commission. He also stated that an action plan is being implemented to expand necessary corrective activities for Nepal to exit the Grey List.

Chief Commissioner Rai pointed out that although the number of complaints to the Commission is increasing, there is a lack of factual and quality complaints. He mentioned the problem of investigations being prolonged due to not receiving evidence and documents from the concerned bodies in a timely and complete manner during the inquiry process. According to the Commission, complaints related to public procurement and construction, budget allocation, grant distribution, illegal gains-losses, damage to public property, bribery, fake academic certificates, revenue leakage, and illegal asset acquisition are more frequent.

The Commission has concluded that low budgets for multi-year projects, allocations without preliminary feasibility studies, source assurance for projects that do not meet standards, and the practice of distributing unallocated funds mid-year are against financial discipline. Rai stated that all three tiers of government must be serious about entering only those projects into the project bank that have completed the legal process and allocating budgets based on that foundation.

He also pointed out the increasing serious irregularities such as procurement without a procurement plan, limiting competition, direct procurement, large investments in medical equipment and IT materials without infrastructure, constructing structures without an operation plan, and shelving unused materials. Furthermore, Chief Commissioner Rai stated that the state has suffered significant losses in compensation claims due to delays in contract management, lack of direction, and weak record-keeping, and that the concerned officials must be held legally accountable. The Commission has also concluded that there is an increasing trend of violating standards and not collecting revenue in the extraction of riverine materials, mines, and minerals.

Similarly, Rai stated that irregularities in the revenue administration have increased due to customs valuation not being based on actual transaction value, under-invoicing, smuggling, and illegal discounts. The Commission reported that problems such as long-term leasing of government, public, and forest land at low prices, encroachment, non-implementation of land ceiling limits, and illegal registration/cancellation are visible in land administration. The Commission stated that there are still widespread complaints in the transport, land revenue, survey, passport, foreign employment, and immigration sectors, and complaints related to these are increasing.

Chief Commissioner Rai mentioned that the implementation of the 428 suggestions given by the Commission to various 12 subject areas and 24 ministries/agencies has not been satisfactory, and the same nature of offenses is being repeated. "The implementation status of the suggestions given by the Commission is not satisfactory. The same nature of offenses and irregularities is seen repeating every year. Responsible officials publicly comment that the Commission's suggestions hinder development and budget implementation. However, these suggestions, given with the objective of reminding legal provisions to correct shortcomings in performance, do not hinder development; rather, they can make development more results-oriented by maintaining good governance," he said. "The tendency to create a narrative that the Commission's suggestions hinder development while failing to comply with the laws made by the legislature must end. After making a law, it must be complied with; if it is not to be complied with, then no law should be made. If any law hinders development, it can be amended by the legislature."

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