Rs 2.85bn doled out under ‘financial assistance’ head since second CA polls

Kathmandu, November 27

The government has provided more than Rs 2.85 billion to different individuals and institutions till date since the election of the second Constituent Assembly on November 19, 2013.

A part of this amount distributed under the ‘financial assistance’ heading has been provided without following the related guidelines and procedures, while some amount has been distributed ‘without any limit’ by the Council of Ministers.

The anomaly in the distribution of the amount from the state coffers has come to the notice of the Finance Committee of the Legislature-Parliament and it will investigate the matter.

Secretary at the Office of the Prime Minister and Council of Ministers, Prem Kumar Rai, informed the committee meeting today that the government since long has been providing money for medical treatment and economic support to the underprivileged and individuals who have been contributing to the nation.

Recommendations to provide financial support has been received from different ministries under various headings, he added.

Secretary Rai said that there have been some incidences where people with political connections and those who are relatively well-off have received financial assistance while in some cases the same person has repeatedly been receiving such support.

“Moreover, some organisations and institutions have been found to be taking financial assistance from the government to cover expenses like celebrating their anniversary or other such programmes.”

He stressed on the need to correct this anomaly and stop the plunder of the state treasury.

The government has allocated Rs 200 million under the ‘financial assistance’ heading for the fiscal year 2015-016.

Joint Secretary at the Ministry of Finance (MoF) Baikuntha Aryal said the government has already distributed Rs 190 million within the first five months of the current fiscal year.

“Party leaders and people whose names are not known in the public sphere have been taking the assistance specifically meant for medical expenses for the extremely poor on the pretext of making a contribution to the nation,” he said.

Aryal said the MoF had to provide the amount without further scrutiny once it had been sanctioned by the Council of Ministers. “We have witnessed irregularities even in documents presented by some of the applicants seeking financial support,” he added.

The Committee, after receiving complaints of wanton distribution of financial support, had issued directives to the government on October 11 not to distribute financial support for the time being and also not to release the amount in cases where a decision has already been made.

Following the committee’s directive, the MoF has stopped the disbursement of more than Rs 60 million in financial assistance which had already been approved by the Council of Ministers for this fiscal year.

According to Secretary at Ministry of Health and Population, Shanta Bahadur Shrestha, the ministry had distributed over Rs 770 million as per directive for medical treatment in the previous fiscal. “With the number of patients inflicted with non-transferable diseases on the rise, the amount needed could be higher this fiscal,” he added.

Apart from this, hospitals established by famous personalities and community hospitals have also been taking millions in financial assistance, as per Shrestha. “Such hospitals received financial support to the tune of Rs 400 to 500 million in the last fiscal.”

Committee Chairman Prakash Jwala directed the release of approved amount to only the disadvantaged and conflict victims for now. Further, he directed the government to amend the guidelines so that the financial assistance is distributed as per the due process and so that only the genuine targeted population gets it.

He said a sub-committee shall be formed to look into the complaints regarding the distribution of the financial assistance and further investigate the matter.