CIAA confiscates documents related to NTB’s finances
KATHMANDU, AUG 01 -
The Commission for the Investigation of Abuse of Authority (CIAA) on Thursday seized documents related to the financial transactions of the Nepal Tourism Board (NTB) which has been accused of misusing tax money.
NTB sources said that five officials from the anti-graft body swooped on the NTB office and impounded at least 300 files of the last three fiscal years. The documents were loaded on two vehicles.
On June 26, the CIAA had formally launched an investigation into alleged financial irregularities at the NTB and directed it to submit the documents related to its financial transactions and other matters of the last four years, including the audit reports of the Office of the Auditor General. NTB sources said that the CIAA took action after the board did not provide the requested paperwork.
The NTB has been rocked by a series of crises lately. On June 19, NTB employees ended 53 days of disruption after the Tourism Ministry “unofficially” disempowered the officiating CEO Subash Nirola. A secretary-level decision authorized its directors to run the organization under the Clause 11 (1) of its Employees Bylaws.
As per the rules, NTB activities can be carried out through a collective decision of four directors, among which a senior director will serve as acting CEO in the absence of a CEO or officiating CEO. The ministry’s decision came immediately after the CIAA ordered it to resolve the longstanding issue within three days or face lead proceedings. The CIAA had warned it would take action against officials of the Tourism Ministry, NTB and other concerned authorities if the ongoing crisis at the board was not resolved within three days, stating that day-to-day activities at the country’s tourism promotional body had been stymied.
Meanwhile, the government had also formed a separate seven-member committee to look into the alleged irregularities but was forced to abandon the probe after NTB officials said that they were unable to provide the requested documents as the CIAA was conducting a parallel investigation. Travel traders have accused NTB bosses of committing irregularities by amending its Financial Bylaws in contravention of the Public Procurement Act (PPA), which lays down the rules for procurement by public entities.
The amended bylaws that have upset the tourism industry have given NTB’s chief executive exclusive rights to spend freely in excess of the limit set by the PPA. The bylaws also allow the board to award contracts without competitive bidding even though the act says that tenders should be called before doing so. Under the amendments to the Financial Bylaws that give sweeping powers to the NTB boss to dispense cash, the CEO can spend up to Rs 10 million at a time for tourism promotion activities inside the country.
The chief can spend $400,000 at a time outside the country without following any due process of the PPA. The CEO has also been given the power to spend up to $400,000 at a time through its honorary representatives and firms.
Source: The Kathmandu Post
