 |
|
| Kathmandu, Tuesday April 16, 2002 Baishakh 03, 2059. |
|
Officials of 18 public
entities to be penalised
By Satyendra Timilsina
KATHMANDU, April 15:Government is mulling to
take actions against high-level officials of state-owned enterprises (SOEs) failing to
submit their final audited accounts to the authorities within April 13, as figured in the
budget statement for the current fiscal year.
"Stern actions would be taken against
executive chiefs and high level account officials of the public enterprises, on the basis
of the list acquired from the Auditor General’s office," said a high-level
government official with the Ministry of Finance.
ith the commitment expressed by the Ministry
official, officials of 18 public entities are likely to face action. A total of 18 public
enterprises have not got audited their financial statements pending for two years or more,
despite the expiry of deadline set by the government.
The government with an aim to assess the actual
financial position of the state-owned enterprises had stated in the budget that it would
take stringent action against high-level officers failing to submit the final audited
statements within the specified time.
Of the enterprises fully owned by the
government, Royal Nepal Airlines Corporation (RNAC) has not got its accounts audited for
the last three years while the statements of Birgunj Sugar Factory, Hetauda Textiles
Industry, Agricultural Inputs Corporation have not been audited for the last two years.
Similarly, Nepal Timber Corporation is yet to
audit for the last five years and Nepal Transportation Corporation for the last four
years. Udayapur Cement Factory has not prepared its financial statements since its
establishment, an extreme case. The company has to get its financial statements audited
from 1991/92.
The latest report of the Auditor General
published some six months ago had pointed out the lack of seriousness of high-level
officials as the major reason behind such a situation. "Despite reminding the
officials time and again to submit the financial statements, substantial progress is yet
to be observed," it states.
And it is not just the fully state-owned
enterprises that have not submitted the final audited accounts of the specified period.
There are half a dozen enterprises whose majority of shares owned by the government have
not conducted the final audit.
Nepal Insurance Corporation, a leading insurance
company, has not audited its financial statements for the last six years. Nepal Orind and
Magnesise Company, which is all set to be privatised, is yet prepare its financial
statements for last four years and get it endorsed from the Auditor General’s Office.
While, Himal Cement Company has not appointed an
auditor since the last five years, five institutions including Butwal Spinning Mills and
Gorakhkali Rubber Industry are yet to inform the office about the appointment of auditors
since their establishment.
Though, these enterprises are not bound to audit
through the Auditor General’s Office, they have to consult with the office before
appointing an auditor.
The late auditing practice of public enterprises
is not just ruining their financial health, but also violating the existing rules and
regulations. Income Tax Act has a mandatory provision that requires all enterprises to
prepare the final statements of any year within the first three months of the next year,
which can be extended by a maximum of three months. Even the Parliamentary Public Accounts
Committee has directed the state-owned institutions to follow the same provision.
Most of the public enterprises are operating in
losses. According to government estimates, the combined losses would amount to 0.7 per
cent of the net capital during the end of the current fiscal year.
As an official at the Auditor General’s
Office said, the list of enterprises that did not comply with the budgetary requirement
would be sent to the government for an action soon. All eyes are now on the government
whether it can really take action against the officials failing to submit the final audit
of their respective enterprises to the authorities.
Other Stories
|
