Nepal's Anti-Graft Body to Expand Oversight to Private Sector

Kathmandu. The Commission for the Investigation of Abuse of Authority (CIAA) is preparing to investigate the business operations of the private sector. With the objective of ensuring good governance in every activity of the private sector, the CIAA is planning to bring commercial transactions under its investigative scope.

In its recently released 'Second National Strategic Plan Against Corruption (2082/83–2087/88)', the CIAA has mentioned criminalizing corrupt acts in all sectors. According to the strategy, policy and legal arrangements will be improved to provide opportunities to correct other misconducts, except in cases where the state has suffered losses or undue benefits have been taken or given. Under this, the CIAA plans to make necessary arrangements to prevent corruption in the cooperative sector, public or private companies, and other private organizations.

According to the strategy, a new Anti-Corruption Act will be drafted within the next two years. The act will include definitions of corruption in the cooperative and private sectors, offenses and penalties, and provisions for recovering losses or misappropriated assets. Additionally, the bodies responsible for investigation, inquiry, prosecution, and adjudication will be designated.

To discourage all types of irregularities and corruption in companies, partnership firms, private organizations, and the cooperative sector, relevant laws and regulations related to the private sector, including the provisions regarding real estate deed registration in the 'Civil Procedure Code, 2074', will be amended and revised in a timely manner. The CIAA is preparing to amend laws to make the act of giving or taking bribes in the private sector's economic, financial, or commercial activities punishable.

New legal provisions will be introduced within two years to impose additional penalties on individuals or organizations in the private sector that misappropriate or cause loss to government or public property. Similarly, the strategy mentions that acts such as altering income and expenditure records, failing to report them, showing non-existent expenses, using false documents, or intentionally destroying records will also be made punishable by law.

Furthermore, to make share transactions in the private sector transparent, strict provisions will be introduced for institutional or individual share transactions exceeding 1 million rupees. For this, the 'Company Directive, 2072' is planned to be amended so that share records are only updated after the buyer submits the original bank statement and voucher or check showing the deposit into the seller's bank account.

Codes of conduct, directives, or standards will be created to prevent conflicts of interest and maintain integrity in the operations of private organizations. Transparency will be increased by strengthening internal audit and control systems. The CIAA has also included in its strategic plan the provision to investigate whether private sector businesses involved in public procurement are operating according to the law and to impose penalties if established standards are not followed. –News Agency Nepal