Auditor General's Office Directs Immediate Recovery of Rs 237.78 Million in Royalty

Kathmandu. The Office of the Auditor General has directed the immediate recovery of royalty amounting to Rs 237.78 million obtained from mines and mineral substances.

According to the 63rd annual report of the Office of the Auditor General, it has been found that royalty for excavation has not been paid for more than one year and excavation has been done in excess of the permitted quantity. It has been asked to recover the amount of royalty rate for ordinary stone at Rs 25 per cubic meter, along with a 30 percent fine and 10 percent local development fee as per rules.

As per the Mines and Minerals Regulations, the royalty amount based on the quantity of minerals extracted from the mine must be deposited in the revenue account within seven days of the end of each month. Royalty amounting to Rs 1.594508 billion has been collected from mines permitted by the Department of Mines and Geology.

In case of non-payment of royalty within the stipulated time, a fine of up to 30 percent is to be paid. According to the department, three companies have to deposit Rs 49.954 million including the 10 percent local fee.

The report states that the amount should be recovered. Although there is a provision that individuals, firms, and industries permitted to excavate mineral substances should excavate only the quantity specified in the agreement, the report mentions that this has not been followed.

The Office of the Auditor General has suggested keeping the accounts of minerals in the prescribed format, as the department collects royalty based on the quantity submitted by the excavators.

Instructions have been given to control the excavation beyond the excavation permit and mining scheme. It has been asked to immediately proceed with the implementation of policies such as establishing a mineral fund, mapping geological information, and creating a database of all mineral resources, citing their non-implementation.