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Kathmandu, Tuesday April 30, 2002  Baishakh 17,  2059.

Home Ministry’s green signal to buy helicopters irks MoF

By Prem Khanal

KATHMANDU, April 29:The Ministry of Finance (MoF) faces extreme resource constraint as the Home Ministry (MoHA) makes determined move to buy three helicopters. Nepal Police has already called for tenders for purchase of helicopters after the MoHA’s clearance but the MoF, which is to allocate the amount for the purpose, is in dark about meeting the cost.

Cost of the helicopters is estimated to be four times more that the budget earmarked for the police for the current fiscal year.

Despite a clear provision in the financial regulation that all the government bodies should take prior permission from MoF before taking any decision that puts financial burden on the government, the Home Ministry issued the tender call without prior notice to MoF, violating the financial regulation, high level officials at the MoF say.

In the current budget, MoF has allocated funds of Rs 220 million only to purchase only one helicopter for the Police. However, the Home Ministry recently called a tender to supply two 9-seater combat helicopters with night vision devices and another 18-seater helicopter.

The Cabinet meeting, held a month ago had agreed in principle to purchase three helicopters but the decision was salient on the amount and specifications of the helicopters. During the meeting, Finance Minister Dr Ram Sharan Mahat had disagreed with the proposal, but the proposal was approved with the support of majority of the Cabinet members, sources say.

Senior MoF officials express surprise over the tender notice of the police headquarters. "The Cabinet permission, in principle, is only the green signal for a feasibility study to purchase the helicopters," says a senior official requesting anonymity. "But it is astonishing to see the tender call based only on the Cabinet permission." He also said that the MoF has not been officially informed about the tender call.

The official also expressed deep concern over the growing violation of the existing financial regulation, which has greatly eroded financial discipline jeopardising the entire economic stability of the country.

"There is growing tendency that required budgets are directly taken into the Cabinet meeting and approved without prior notice to MoF, which makes the MoF extremely difficult to arrange such non-budgetary amount," said the official. The MoF has tried to address this issue by sending circulars recently to all government bodies to strictly follow the financial regulation.

Devendra Raj Kandel, Minister of State for Home Affairs, however, argues that helicopters have become essential for the police force to speed up its anti-Maoist campaign. "Since security is the topmost priority of the government at the moment, we do hope that the concerned authority will arrange the necessary budget," Kandel told The Kathmandu Post.

Justifying the need of two night vision-equipped combat helicopters, he said the police force needs such helicopters to foil Maoist attacks at night time. "Since most of the bloodiest attacks have been carried out during the night, the police force direly needs such choppers," he added.

Meanwhile, the newly instituted Armed Police Force (APF) has also requested the MoF to arrange funds for two helicopters. In addition, the source of the MoF also informed that neither Nepal Police nor the APF have requested the MoF to arrange the budget in the upcoming budget estimate to purchase two combat helicopters.

The skyrocketing regular expenditure due to the increased security expenditure and the dwindling government revenue have put the government in a challenging situation. The Royal Nepal Army (RNA) has also recently presented a three-year package plan pleading the government to arrange extra Rs 16 billion over the period. Aside from the plan, the overall security expense for the coming fiscal year is expected to touch Rs 19 billion. This includes, over Rs 13 billion, including the package programme budget for the RNA and rest about Rs 6 billion for Nepal Police and the APF.


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