Kathmandu, July 26

The federal government has said that around 400 local levels have misused central funds in the name of using vehicles.

There are 753 local governments in the country.

A high level source at the Ministry of Federal Affairs and General Administration said that some local governments had spent around Rs. 4,00,000 per month on using vehicles.

According to the source, most of the local governments who misused the central fund are in Province 2. The local governments of the lower belts of the Province 4 and Province 7 have also misused money for vehicles.

The number of local governments misusing the central fund in Province 1 and Province 4 is not as high as in other provinces.

The central government had directed all the local governments not to use the central government’s fund in the name of buying vehicles last fiscal. The central government said the local levels could buy vehicles if they could manage their own fund.

According to ministry sources, some local levels came up with the idea of renting vehicles instead of buying brand new vehicles. “We found some local governments spending around Rs 190,000 per month on vehicle rent,” said the MoFAGA source.

Some of the chiefs and deputy chiefs of the local levels were found to have purchased vehicles in the names of their family members. “They later rented the same vehicles and made a huge payment to their own family members or relatives,” the MoFAGA source said.

The source said some local governments spent huge amounts in the name of vehicle maintenance.  Some local levels were found to have sent their vehicles to their leaders and for the ruling party’s political work.

According to the ministry, this year, the local levels bought more than 100 ambulances. The central government didn’t restrict any local level from buying ambulances. “Local levels bought an ambulance for health purpose, but used them for regular work,” the source said.

The MoFAGA had drafted a Vehicle Procedure for local governments, but the Ministry of Finance didn’t agree with MoFAGA saying the local governments were free to make their own laws.