FM asks fund to follow financial discipline

KATHMANDU, MAY 23:

Finance minister Shankar Koirala has directed the Youth and Small Enterprise Self-Employment Fund to maintain financial discipline and become transparent in the use of public money.

“The fund must be transparent as its image has been tarnished due to its earlier activities,” Koirala said in a board meeting, here, today.

“The board must publish the names and addresses of the borrowers in its website immediately,” Koirala directed, adding that the fund should also publish the names of cooperatives facilitating the self-employment programme.

“It is necessary to maintain transparency and accountability of public money,” finance minister said.

The Youth and Small Enterprise Self-Employment Fund has been blamed

for providing public money to cadres affiliated to some political parties instead

of genuine unemployed youth seeking to start their own ventures.

According to Koirala, it is time to evaluate activities of the fund that was established to provide self-employment loans to generate employment for 50,000 youths every year.

However, the board has not been successful in meeting the target following a huge demand in 2009 and political interference in later years. “Since there is no political government at present, the fund must work professionally,” Koirala suggested.

The finance minister also directed the fund to avoid the interests and influence of banks.

“The fund should develop a vision paper for the next couple of years,” he suggested, instructing the employees to follow the fund’s rules and regulations instead of political bosses.

Senior economic advisor of the finance ministry Dr Chiranjivi Nepal, on the occasion, urged the fund to strengthen its base. “The members of the board must be clear that loans should be returned on time,” he said, adding that board members should not spread rumours that the loans from the fund need not to be repaid.

Secretary at the ministry Shanta Raj Subedi also directed the board to facilitate self-employment to at least 50,000 youth in a year. “The fund should not repeat earlier mistakes but be focused on objectives,” he said. Similarly, secretary at the ministry of labour and employment Suresh Man Shrestha urged for an end to political appointments in the fund.

Vice-chairman at the fund Dr Punya Prasad Adhikari said that the fund has succeeded in reaching the rural poor through cooperatives. The impact of the fund’s activities will be seen in the near future, he said.

Nepal, Australia trade talks

Finance minister Shankar Koirala asked Australia to widen the trade facilities to Nepali goods in a meeting with Australian ambassador to Nepal Glen White today. He also urged the ambassador to facilitate Australian investment in potential Nepali sectors like tourism, hydropower and environment protection. He thanked Australia for an increase in aid to Nepal to $38 million. Nepal and Australia have been in friendly relations since 1960.

Source: THT