Money
Irregularities at Tourism Board : Panel seeks ‘demarcation’ of probe areas
An investigation committee formed to look into alleged financial irregularities at Nepal Tourism Board has asked the Tourism Ministry to make a “clear-cut demarcation” of investigation areasThe probe committee made such a request to the ministry after NTB officially informed it would not be able to provide any kinds of documents related to the inquiry, according to a member of the committee.
On June 26, CIAA formally launched an investigation into the alleged financial irregularities at NTB. “As two investigations on the same issue cannot be carried out simultaneously, we have asked the ministry for its help,” said the panel member. “It will also be uneasy to carry out an investigation when the same case is being handled by a Parliamentary body.”
On May 11, the Tourism Ministry created a three-member investigation committee led by Joint-secretary Purna Chandra Bhattarai, bowing to a 12-day protest by the private sector. The body was formed by a ministry-level decision. However, agitating travel trade entrepreneurs rejected the probe panel formed by the government, stating it did not include their representative.
Then on June 19, the ministry included two private sector representatives in the investigation panel. Subsequently, NTB resumed its services after the 53-day strike.
Meanwhile, the panel has also asked the ministry to provide additional time to complete the report. It has asked the ministry to make clear the terms of reference (ToR) in regard to the amended Financial Bylaws of NTB, which has been amended in contravention of the Public Procurement Act (PPA), which lays down the rules for procurement by public entities.
As per the ToR, the panel has been mandated to recommend the government on amendment to the NTB Financial Bylaws if there are any flaws. The committee has also been asked to study the amended financial bylaws and recommend necessary action. It has also been told to investigate NTB’s income and expenditure of the past three years and advise the government on the measures to be taken if financial misconduct is detected.
Other tasks given to the committee include looking into the expenditure of tax money collected by issuing Trekkers Information Management System (TIMS) cards to foreign trekkers and the money raised by Nepal Mountaineering Association by issuing climbing permits, and recommend better ways to manage the resources.
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.
Similarly, 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.
As per the new rules, the NTB can procure goods and services worth up to Rs 2.5 million through a quotation. The board can also purchase goods and services including promotional materials through a single supplier directly through a written proposal.