The Revenue Investigation Department: A Political Weapon that Annoys Some and Subjugates Others
6 Director Generals Changed in 28 Months, Experts Say - It Seems Like the State is Trying to Weaken Itself
After a long investigation, in the second week of Magh 2079, the Revenue Investigation Department initiated the process of gathering statements from high-ranking officials of the bank regarding the investigation into the income tax of the former Nepal Investment Bank.
The Auditor General's office had instructed the collection of taxes due to the issue of the FPO (Follow-on Public Offering) at a premium price, which would attract income tax.
After conducting the investigation in coordination with the Internal Revenue Department, the Council of Ministers suddenly transferred the Director General of the Department, Madan Dahal, during their meeting on the 22nd of Magh 2079.
Dahal's abrupt transfer occurred after high-ranking officials of the bank influenced Baluwatar to drop the case against them.
Prime Minister Pushpa Kamal Dahal 'Prachanda' appointed Narayan Prasad Sapkota as the new Director General of the department, replacing Dahal.
Sapkota, who took over the leadership of the department by stopping the investigation initiated by Dahal, was also transferred within five months on Tuesday. Sapkota left the department with the weakest performance, coinciding with a time when the country's revenue collection was significantly low.
Following Sapkota's removal, PM Pushpa Kamal Dahal appointed his personal secretary, Navraj Dhungana, as the new Director General of the department on Tuesday.
Dhungana is accused of running the revenue investigation department while holding the position of the prime minister's office, even without officially being the Director General.
"Dhungana, who was given the responsibility of the department by the government on Tuesday, is now the sixth Director General of the department in the last 28 months. Prior to this, no director has served at the helm of the department for more than a year since Dirgha Raj Mainali departed on the 18th of Falgun 2077."
The Revenue Investigation Department was established to enhance revenue administration in the country and control revenue leakage. However, a former Director General of the department stated that instead of improving revenue, the department has become a political weapon used to provide benefits to favored individuals or target those who are disliked.
According to department sources, Sapkota only advanced two cases of revenue evasion during his tenure. He holds the record for the fewest number of cases handled by a Director General in the department's history. These two cases of revenue evasion were filed on the 11th and 18th of Falgun, 2079.
While Sapkota was Director General, a truck carrying electric cigarettes (Vapes) imported from Tatopani reached India from Bhairahawa. Smuggled vehicles carrying clothes, onions, and sugar evaded the customs checkpoint and safely arrived in Kathmandu. Even the vehicles carrying rags and clothes that passed the Rasuwagadhi checkpoint, which should have been detained through centralized customs department monitoring, escaped investigation. The department's performance in such matters remained weak.
However, Sapkota claims that the work he accomplished in five months was commendable. He was quoted as saying, "I did an excellent job. The government is now transferring the responsibility to a competent friend. May the work I started continue."
6 Director Generals in 28 Months
Dhungana, who was appointed as the Director General of the department by the government on Tuesday, is now the sixth Director General in the last 28 months. No director has served at the helm of the department for more than a year since Dirgha Raj Mainali left the department on the 18th of Falgun 2077. Department officials report that, on average, each Director General's tenure has been approximately five months.
From Falgun 19, 2077, to Asoj 17, 2078, Ram Prasad Acharya served as the Director General of the department. Acharya's major achievement during his seven-month tenure was initiating research on the Bottlers Nepal file, but beyond that, he did not accomplish much. Prakash Poudel succeeded Acharya on the 18th of Asoj 2078 and remained as the Director General for nine months until the 31st of Jestha 2079.
Poudel appears to have taken the most cases to court during his tenure. He initiated over two dozen cases, including revenue evasion, hundi (illegal money transfer), and embezzlement of foreign currency. The Bottlers Nepal tax case also went to court during his time as Director General.
Poudel, who initiated an investigation into a major cryptocurrency and Hyper fraud, also investigated Samanantar Nirman Sewa, which has significant political influence.
Department officials claim that he was removed by the Deuba government at the time due to increased investigations into silver smuggling and pending cases involving influential families.
Similarly, Jhalakram Adhikari served as the department head for five months from Ashad 1, 2079, to Kartik 15, 2079. Adhikari, who succeeded Poudel, left the department amidst considerable controversy. Department officials accuse him of aligning the investigation department with interest groups during the election period.
Following his underwhelming performance, the department was handed over to Madan Dahal. Dahal served as the Director General from Kartik 16 to Magh 22, 2079. Narayan Prasad Sapkota, who replaced Dahal on the 23rd of Magh 2079, was subsequently removed on the 11th of Ashad. Dhungana has been overseeing the department since the 13th of Ashad.
Director General Position and Political Patronage
A former Director General of the department notes that the tradition of changing the Director General has become prevalent. According to him, only individuals who receive political patronage are appointed as the Director General of the department. He stated, "Dhungana, who assumed the role of Director General while serving as the private secretary to the Prime Minister, is a prime example of this."
He further stated that the Revenue Investigation Department has become an organization that political leaders can exploit for their own benefit. "If the leadership favors you, it becomes easy to take revenge on businessmen you dislike and protect those you favor," he said.
Former Chief Secretary Dr. Bimal Koirala described the frequent transfers in the office under the Prime Minister as a misfortune for the country.
When there is an intention to harm someone, political leaders instruct, "So-and-so should be targeted." "If no suitable person is available, employees may refuse to comply, or if the department arrests someone, leaders can intervene and demand reconsideration, requiring individuals who will comply," he added.
He himself was transferred when the then Director General Madan Dahal was investigating tax-related matters involving the Investment Bank. "There was pressure to drop that case, and when it wasn't accepted, I was transferred," he revealed.
Narayan Prasad Sapkota, who was removed from the department, is not known for involvement in corruption cases. However, he has been unable to hold a long-term position in any office in recent years.
After Janardan Sharma became the Minister, Sapkota was appointed as the Director General of the customs department. The Minister referred to him and the then Director General of the Internal Revenue Department as "two generals." However, both were transferred within a few months.
Another former Director General of the department highlighted the issue of good governance within the department. "It seems as though the department has become a place for 'political financing'," he remarked.
Former Chief Secretary Dr. Bimal Koirala described the frequent transfers in the office under the Prime Minister as a misfortune for the country.
Koirala emphasized the lack of a scientific basis for personnel administration and management, asserting that such actions weaken the state and hinder the work of capable employees. "When the central body responsible for combating revenue evasion lacks stability, interest groups reap significant benefits," Dr. Koirala warned. He called on politicians to strive for improvement, stressing the need for honesty, integrity, and perseverance in the current situation.
(Disclaimer: This article is a translation from an original source. The consistency in information and statements has been maintained for accuracy.)
