Nepal to Appoint Regulatory Bodies for Private Sector and NGOs to Curb Corruption

Kathmandu. The government of Nepal is set to appoint regulatory bodies for the private sector and non-governmental organizations. This measure is being implemented to control potential financial irregularities and corruption within these entities.

Currently, many organizations are registered and operational, but there is no clarity regarding their regulatory oversight. Many manufacturing and commercial business entities have not yet fallen under this scope.

This provision is mentioned in the 'Second Five-Year National Strategic Plan Against Corruption' introduced by the government. With the implementation of this plan, no private company or organization will remain outside the direct regulation and surveillance of the state.

According to the strategic plan, regulatory bodies will be appointed within one year for companies or organizations that do not have a legally designated regulator. For this, the government is preparing to introduce a new company law and amend existing laws related to private organizations.

The primary responsibility for this task has been assigned to the Ministry of Industry, Commerce and Supplies, the Ministry of Law, Justice and Parliamentary Affairs, and the Ministry of Finance. The Office of the Prime Minister and Council of Ministers will monitor the progress of appointing regulatory bodies and amending laws.

Potential Implementation Challenges

The government has also identified several challenges in implementing this plan. According to the document, there is a risk of jurisdictional disputes between government agencies regarding which ministry or department should regulate which organization.

Furthermore, the government acknowledges the possibility of opposition or institutional resistance from private sector entities or organizations that have been operating independently outside the scope of regulation and may not wish to come under strict oversight.

The action plan states that once this new arrangement is implemented, the private sector, public companies, and non-governmental organizations are expected to become more accountable to official state bodies, fostering transparency and good governance in the overall economic system.