Outsourcing fraud sees another record

KATHMANDU, JULY 20: 

Number of outsourcing fraud cases has set a new record with an increase of 44.56 per cent in fiscal year 2011-12, as compared to 1,204 registered cases the previous year. According to Department of Foreign Employment, about 2,172 fraud cases were recorded at department in 2011-12. 

The rising trend denotes an alarming situation in the outsourcing sector but officials at department refuse to accept it. “It does not indicate an alarming situation. We have seen an increase in number of outsourcing fraud cases due to more people joining foreign jobs,” said director at the department Kashiraj Dahal.

The number of Nepalis joining foreign jobs increased from 354,543 in fiscal year 2010-11 to 384,210 in the last fiscal year. Worker migration will touch 504,089, if the 119,879 workers reentering foreign jobs are also included in the migration figure.

According to Dahal, due to the establishment of a ‘rapid response system’ in the department the number of fraud cases has seen an increase. Department has separate mechanisms to investigate fraud committed by agents and outsourcing agencies. 

However, labour expert Dr Chiranjivi Nepal believes that the government’s lackadaisical approach to maintaining law and order has been fuelling outsourcing fraud. “Government is shamelessly looking at the rising trend without doing anything concrete,” he said. 

According to the department, about 1,370 individual fraud cases were registered last fiscal year but the number was 721 a year before. Similarly, 802 cases were against outsourcing agencies last year while it was 483 in fiscal 2010-11. 

The department has filed 196 fraud cases at the Foreign Employment Tribunal after preliminary investigations. The number of cases filed at the tribunal was 97 in fiscal year 2010-11. 

In monetary terms, in last fiscal year total cases registered were worth Rs 1.23 billion while claims were worth Rs 641.39 million a year before.

Source: THT