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 Kathmandu Tuesday November 20, 2001 Marga 05,  2058.


Widespread financial irregularities mar KMC

By Razen Manandhar

KATHMANDU, Nov 19 – The Kathmandu Metropolitan City (KMC) Office is marred with widespread financial irregularities and the limited economic resources widely misused, according to a self-assessment report prepared by KMC.

The in-house report that was available to The Kathmandu Post today details misuse of KMC resources and how the funds are being ransacked.

"Elected local representatives of KMC appear to be more involved in fulfilling their own personal benefits than serving the interest of the people, who elected them," says the report on misuse of economic resources prepared by a Ward Chairman.

The report has disclosed that the local representatives have taken out Rs 9,300,154 as advance but have failed to clear the accounts by specifying where and when they have used the funds as required by the financial regulations to clear up the annual auditing.

On top of that a total of Rs. 2,516,281 has been paid out to various members for medical treatment. However, there are no provisions in the regulations that allow KMC representatives to be paid medical allowances and the advance paid out should be cleared within 35 days from the day of payment.

KMC Ward No 28 Chairman Subhan Kumar Shrestha had handed over the report to the KMC Board Meeting before the Dashain festivals. "But the mayor said he was taking responsibility on processing the report and would follow up the report as all the members opted to remain silent," said Shrestha, whose report remained a secret held back by Board members for a whole month during the festival.

Shrestha took the responsibility of probing and preparing a report on misuse of economic resources on August 17. "I submitted the report on October 19 but it is still collecting dust in the KMC office," he said.

Among those who had received cash in advance and failed to clear the dues are the mayor, deputy mayor, ward chairmen, ward members as well as nominated ward members. Ramesh Dangol, the ward No. 2 chairman, tops the list taking advances totalling Rs 1,715,500 just last year. Mayor Sthapit has Rs. 970,894 to his name while there are 66 more names in the list.

Altogether 41 KMC representatives have received total of Rs. 2,516,281 as medical allowance though there are no legal provisions that allow such facilities. Among them, Ward No. 14 Chairman Badri Bahadur Thapa and former Ward No. 27 Chairman Dharma Ratna Tuladhar have received Rs 320,000 each. And Ward No. 9 Member Shyam Krishna KC has received Rs 250,000. Similarly, Ward Chairmen Ganesh Bahadur Khadgi, Bidhya Sunder Shakya, Hari Krishna Dangol and Narattam Baidhya and Ward Member Bidhya Neupane also grabbed over a hundred thousand rupees.

Moreover, the mayor, deputy mayor and chairmen of ward No 26 and 30 have been found using mobile phones on KMC expenses which is against the Local Self-Governance Regulations and it has incurred Rs. 182,204 in past 14 months.

The report also points out that chairmen of ward No. 2, 5, 17, 18, 27 and 30, including a ward No. 7 member as well as the deputy mayor still use KMC motorcycles, which is against the earlier decision that bar such use.

"These activities are the reason people are losing their trust on the local representatives," said Shrestha, who prepared the report. "A radical change must be brought in the present process of making the representatives follow economic discipline and make economic transactions more transparent," he stressed.

Commenting on the present tendency of the municipalities to abuse the Local Self-Governance Act, the under secretary of Ministry of Local Development Achyut Kumar Koirala said that many of the municipalities are interpreting the concept of self-dependency as autocracy.

"KMC has been charged by Commission for Investigation of Abuse of Authority (CIAA) in many cases of irregularities. The tendency of many municipalities have been seen misusing the authority than bringing out creative plans and policies for local development," he said.


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