Investigation into Madhesh Province grant irregularities stalled after report destroyed

Janakpurdham. The investigation process into alleged irregularities regarding conditional and special grants distributed by the Madhesh Province government to local levels has fallen into uncertainty following the destruction of the inquiry report.

It is reported that the document was incinerated during an arson attack on the Chief Minister's office during the Janaji movement.

Following allegations of widespread irregularities in the distribution of conditional grants and budget transfers to local levels in the fiscal year 2079/080, the provincial government had formed a special investigation committee. The 10-member committee, led by Provincial Assembly member Upendra Mahato, submitted its report to the Provincial Assembly, but it has yet to be implemented.

The committee submitted the report to the then Speaker Ramchandra Mandal on 2081 Ashar 9. Subsequently, the Provincial Assembly forwarded the report to the then Chief Minister Satish Kumar Singh for implementation; however, the former government showed little interest in taking action.

Current Chief Minister Krishna Prasad Yadav stated that several files in the Chief Minister's office were burned during the Janaji movement, and the report may have been among them. According to him, the lack of available records makes it difficult to form a clear position on the matter.

Meanwhile, former Chief Minister Singh claimed that the basis for action within the report was weak, noting that it contained both allegations of irregularities and suggestions for reform, which hindered immediate action.

Committee coordinator Mahato, however, asserted that the report clearly identified the guilty and responsible parties, stating that its implementation remains the responsibility of the Provincial Assembly and the government.

The report highlights that the then Finance Minister Sanjay Kumar Yadav arbitrarily sent grants to local levels in his home district, violating established procedures. It also points out that nearly 420 million rupees were transferred in the Ministry of Industry, Commerce and Tourism by bypassing standard protocols.

Furthermore, the report concluded that some transfer requests were approved before being officially registered, and grants were distributed disproportionately across 130 of the 136 local levels in Madhesh Province.

Specifically, excessive grants were directed to six municipalities in Sarlahi and one in Saptari. The report notes that local levels under Sarlahi Constituency No. 3 (2)—Chakraghatta Rural Municipality, Bagmati Municipality, Kabilasi Municipality, Barahathawa Municipality, and Basbariya Rural Municipality—received grants ranging from 3.9 million to 6.8 million rupees.

The report also notes that some local levels received no conditional grants at all, highlighting discrimination in distribution, particularly against municipalities won by opposition parties.

The committee identified a serious lapse where projects worth as little as 2.5 million rupees were approved, despite regulations prohibiting the grant of projects worth less than 5 million rupees in metropolitan and sub-metropolitan cities.

The claim that the report has been destroyed has further clouded the investigation process, raising renewed questions regarding public financial transparency and accountability.