Kathmandu, June 6:

A number of cheques handed out to people by the Finance Division of the Kathmandu Metropolitan City (KMC), the nation’s only metropolis, bounced recently, it has been revealed.

The head of the Finance Department Mahendra Lal Shrestha confirmed the lapse on the part of the department, but said the department immediately transferred the funds to the KMC bank account.

“The problem arose because of a technical mistake. Two of our officers concerned were transferred to the Revenue Department. Also, I was on leave for a few days,” he said, adding that it was not “a big issue.”

“We deposited the required cash at the bank after a person came to me on Monday to complain about the lapse on our part,” he said, adding that only a few cheques bounced.

Meanwhile, he denied the claim that employees of the KMC, who were entitled to receive allowances, returned empty-handed because there was no money in the bank account. The KMC has hundreds of bank accounts, he claimed, adding that one can easily transfer money from one to the other account whenever the need arises.

Some employees of the KMC said they were not given their due allowances as officials at the bank said there was no sufficient deposit. They said the problem had arisen because the KMC had paid a huge sum of money to pay the contractors.

Shrestha said the department’s works have been hampered due to the transfer of finance division chief Rajya Bikram Pradhananga and account officer Navaraj Thapa. “The posts of chief of the finance division and account officer have been lying vacant,” he said.

KMC chief executive officer Dinesh Thapaliya also confirmed the lapse. He said the lapse

occurred because of delay in transferring the deposit. “We have decided to clear the

dues amounting to three crore rupees to contractors. One crore rupees has already been paid,” he said, adding, “This could be the reason.”