Give, Take & Forget?

AT the Public Accounts Committee of the House of Representatives, it was the turn of public enterprises to come under scrutiny from the committee members Thursday. Not unexpectedly, on the plate for discussions were negative fiscal performances of some 14 state-owned corporations. The discussions were based on the recently-presented Auditor General’s report. Every year after the Auditor General’s report, various financial irregularities committed by government agencies, including government-owned public enterprises, come to the fore. As with previous years, the Auditor General’s report has thrown up glaring financial indiscipline in public enterprises which seem to excel in keeping its accounts messy and leaky. On examination of these public enterprises, the Auditor General’s office found that even the most basic norms of financial discipline were not maintained. The list of the public enterprises found wanting in fiscal discipline are topped by some of the big ones like Nepal Electricity Authority, Nepal Telecommunications Corporation, among others. They were found not to have bothered to audit their accounts for the last two to three years. It does not take much to surmise that when a public enterprise cares two hoots about the need for having an audit of its finances year after year, there is something fishy. Without proper auditing, a public enterprise cannot see for itself where it stands financially and which areas need to be improved upon. Keeping the accounts unaudited for years robs that organisation, be it public or private, of any chance to appreciate the financial position it is in and thus rules out any sincere efforts to tackle fiscal problems. Most of the 14 public enterprises under scrutiny had their last auditing done two or three years ago.

It was easy for the Auditor General to also see that unsettled advances seemed to run like a common thread in the fiscal indiscipline in these public enterprises. These public enterprises are also big debtors. For instance, Employees Provident Fund accounts for the year 1999-2000 showed that it had made advances worth 186 million rupees while it was under the debt of 468 million rupees. The advances and debts vary in amount but others too are reeling under the burden of unsettled accounts and liabilities. It seems to be the case of giving advances, running up debts and then just forgetting them all. Given the rampant fiscal indiscipline in public enterprises, it is essential that the government pulls up these organisations seriously and ask them to perform better even as the government’s privatisation drive prepares to put on the block the enterprises that need to be privatised immediately.

Nepal’s Commitment

NEPAL ratified two important instruments of International Labour Organsiation (ILO) concerning forced and compulsory labour and hazardous types of child labour. The House of Representatives, unanimously endorsed the proposal put forth by Minister for Labour and Transport Management Palten Gurung seeking the ratification of these ILO Conventions the other day. The two important instruments which parliament ratified include ILO Convention No 29 on Forced and Compulsory Labour and ILO Convention NO 182 on Worst Forms of Child Labour. The Convention No 29 prohibits all forms of forced and compulsory labour while the Convention No 182 seeks elimination of hazardous and worst forms of child labour. Nepal has already prohibited forced and compulsory labour and has also ratified United Nations Conventions on the Rights of the Child and expressed its commitment in the international level for the protection and promotion of child rights. As per the international commitment it has taken some legislative as well as policy measures to protect the rights of the child. Child labour is a violation of human rights and child rights. As such Nepal has also formulated laws that discourage and eliminate child labour. However, this goal has not been fully achieved due to poverty and other social and economic constraints. Despite the government’s commitment and efforts to protect the rights of the child, child labour continues in the country in different forms. Statistics show that there are about 2.6 million child labourers in Nepal. Some of their works are hazardous, which, according to ILO definition, are the worst forms of child labour. Child labour denies children of their right to education and recreation. Thus, child labour must be eliminated. But the total elimination of the child labour may not be possible immediately. Thus, ILO seeks to eliminate the worst forms of child labour immediately and work for the progressive elimination of all other forms of child labour. His Majesty’s Government’s policy also complies with those of ILO. By ratifying two ILO conventions, Nepal has reiterated its serious commitments and willingness to ultimately eliminate child labour. The issue is closely linked with poverty and social structure of the country. Thus, it is not possible to eliminate child labour overnight until the country gets rid of existing social and economic problems. Poverty thus, needs to be first attacked in order to solve social and economic problems including elimination of child labour.