Kathmandu, February 20

The Financial Administration Section of the Ministry of Federal Affairs and Local Development today issued a circular to the Department of Local infrastructure Development and Agricultural Roads, Department of Civil Registration, all district development committees, metropolis, sub-metropolitan cities, municipalities and projects to settle arrears accumulated in the name of their concerned employees by mid-April.

It is one of the responsibilities of the MoFALD to clear or cause to clear the arrears that had built up in the previous fiscal years and accord high priority to the activities which avoid accumulation of arrears with an objective of maintaining discipline in government offices and local bodies. Recently, the MoFALD had developed an action plan for arrears settlement. The MoFALD has urged the concerned agencies to settle arrears registered in the name of their employees as per the action plan.

“It is requested to clear the arrears accumulated in the name of employees by mid-April. If arrears of any employee are not settled within the stipulated time, no salary, allowance and other facilities will be paid to him/her,” read the circular.

The MoFALD has also directed to the offices to bring into use the Audit Observation and Record Tracking System within one month to maintain records of audit and monitor the settlement of arrears.

“The concerned agencies will be required to meet the target relating to arrears settlement compulsorily by mid-April. It is also highly critical to cause to settle arrears of employees working under each department, project, committee, commission. Performance appraisal of departmental heads, project officers and account officers will be conducted on the basis progress report in this regard,” said the MoFALD. They have also been asked to submit the progress report on arrears settlement every 15 days.