KATHMANDU, DECEMBER 18

The Ministry of Federal Affairs and General Administration has authorised the local levels to carry out construction works through users' committees or beneficiary committees under the prevailing laws until further notice.

In a MoFAGA circular issued to all the local levels yesterday, it assured the local governments that the Public Procurement Act, 2007 and Public Procurement Rules, 2007 had clearly stipulated the provisions allowing them to carry out works through the users' committees or beneficiary committee.

MoFAGA has directed the local levels to perform works as per the act and rules until further notice amid confusion over implementation of programmes and projects included in their annual budget and programme.

Since the MoFAGA was verbally asked for clear information as to whether the local levels can implement the programmes and projects through the users' committees or beneficiary committees concerned, they are requested to move forward in accordance with the act and rules.

The MoFAGA further said that taskforce was chaired by the chief of Planning and Development Cooperation Division at the ministry to study and prepare a report along with recommendations regarding the existing provisions of mobilisation of users' committees or beneficiary committees for carrying works and obtaining services. The taskforce has also been mandated to analyse and arrive at a conclusion on the practical aspects of such provisions.

"Against this backdrop, the local levels may mobilise the users' committees or beneficiary committee for carrying out works under the act and rules until the submission of a report by the taskforce and making of provisions other than those mentioned in the law," the circular reads.

As per the existing law, a construction work or service related to the cost estimate that does not exceed 10 million rupees may be executed by or obtained from a users' committee or beneficiary community consisting of only the inhabitants residing in that place and from the community using such service.

Earlier, on November 9, the Ministry of Urban Development had halted the projects and programmes being carried out through users' committees until the formulation of a procedure relating thereto.

A committee headed by its joint secretary of the MoUD was also formed to work on the procedure for making the projects and programmes to be performed through users' committees more effective, sustainable and employment-oriented.

Following the move of the MoUD, the local levels were confused about the existing provisions.

The 57th and 58th reports of the Auditor General had suggested that the Government of Nepal transfer the responsibility of construction, operation and maintenance of development works to users' committees by making the provision of social audit and hearing so as to ensure their quality and timely completion.

The reports had also found irregularities in the development works entrusted to the users' committees due to their collusion with contractors and government officials. It was observed that the construction works carried out through users' committees were not as effective as they should have been. They were also found to have been involved in embezzlement of government funds.

A version of this article appears in the print on December 19, 2021, of The Himalayan Times.