International Anti-Corruption Day: Nepal's situation continues to go downhill

KATHMANDU, DECEMBER 9: The efforts to combat corruption in Nepal have not yielded significant results, making the pursuit of good governance even more challenging. On International Anti-Corruption Day which falls on December 9, experts and stakeholders stress the need for a thorough review of the country’s anti-corruption initiatives and the progress made in fostering good governance.

Transparency International, along with other organizations, has highlighted the government's failure to curb corruption, the weakness of the justice system, policy ambiguities, and difficulties in implementation as key obstacles to good governance. Official reports from bodies like the Commission for the Investigation of Abuse of Authority (CIAA) and the Auditor General confirm that corruption is on the rise.

Madan Krishna Sharma, Chairman of Transparency International Nepal, notes that there are no signs of reduced corruption or optimism for improvement. "Corruption is widespread today, and there is no indication of it diminishing. It is evident in policy decisions, large project procurements, appointments, transfers, and promotions," he stated. "Examining the annual reports of institutions working towards good governance shows that the country’s efforts to combat corruption are worsening."

Sharma attributes this to weakened public accountability and the failure to enforce laws effectively. He also pointed out that investigations, prosecutions, and judicial processes regarding corruption have been progressively weakening. "The scope of corruption is expanding, as is the range of sectors involved. However, only one-third of cases filed by the CIAA result in convictions," Sharma explained. "This raises the question of whether the quality of cases is poor or if the judicial system itself is flawed, reinforcing that we have not strengthened our anti-corruption efforts."

Furthermore, Sharma stressed that the lack of clear boundaries and relationships between political leadership and administration, with politics dominating the administration, exacerbates the situation.

The primary responsibility for controlling corruption and fostering good governance lies with the heads of the respective bodies. Although monitoring and evaluation are crucial in fighting corruption, public bodies have struggled to implement these measures effectively.

Narhari Ghimire, spokesperson for the CIAA, emphasized that the heads of ministries, departments, and public bodies need to establish robust internal monitoring and control systems. He underlined that ensuring good governance, completing projects on time, improving procurement management, maintaining transparency in public fund use, conducting audits, and controlling irregularities are the shared responsibilities of all levels of government and their subordinate bodies. "Once corruption has occurred, the CIAA's role is limited to investigation and prosecution," Ghimire added.

No improvement in key indicators

Transparency International's 2023 Corruption Perception Index (CPI) places Nepal among the countries with significant corruption, with a ranking of 108th and a score of 35. A score below 50 indicates pervasive corruption, as Sharma pointed out. Transparency International has noted that factors like the government’s failure to control corruption, the weak justice system, and other challenges continue to hinder progress in Nepal.

The constitution mandates that the government adopt effective measures to tackle corruption across political, administrative, judicial, and social sectors. Government policies and periodic plans also emphasize good governance and corruption prevention. The 16th Plan prioritizes "good governance, social justice, and prosperity," proposing that these can be achieved through good governance. However, its implementation has been minimal.

The 16th Five-Year Plan aims to increase Nepal's CPI score to 43 by fiscal year  20 2027/28, but there has been little progress. The CPI score was 35 in the previous fiscal year 2023/24 and 34 in the fiscal year 2018/19, indicating stagnation. Similarly, the rule of law index has remained stagnant at 0.52, showing a deteriorating situation.

The plan also advocates for eliminating corruption through a cashless economy, though there is no research on the informal economy’s impact, making it difficult to assess its effects.

The CIAA's 34th Annual Report for fiscal year 2080/81 recorded 26,918 complaints. Of these, 52.8% were against local governments, followed by 34.84% against federal governments and 12.32% against provincial governments. Among federal ministries, the Ministry of Land Management, Cooperatives, and Poverty Alleviation received the most complaints (18.13%).

Ghimire explained that the increase in complaints reflects the worsening state of governance. "From trivial to significant complaints, the number has risen, with grievances about unaddressed issues, lack of service delivery, and stalled development," he said.

While the CIAA is focusing on investigative, preventive, promotional, and institutional capacity-building strategies, there are complaints about delays in investigations, prosecutions, and case resolutions, with very few cases resulting in guilty verdicts. This raises concerns about the commission’s working style.

The Auditor General’s 61st Annual Report highlights that outstanding arrears in government offices and other entities at all levels have exceeded NPR 1.183 trillion. New arrears of NPR 236.55 billion were added in the last fiscal year (2079/80).

The report recommends improving ethical conduct, identifying high-risk areas for corruption, ensuring transparency in procurement, and implementing e-governance to improve service delivery.

Weakness in lawmaking and implementation

Despite being a signatory to the United Nations Convention Against Corruption, Nepal has not effectively implemented the National Strategy and Action Plan formulated in 2069. Ghimire pointed out that active efforts from both the political and administrative sectors are necessary to meet Nepal’s legal obligations under the convention. "Our legal processes and mechanisms need reform," he said.

Two important bills related to good governance— the "Corruption Prevention (First Amendment) Bill, 2076" and the "Commission for the Investigation of Abuse of Authority (Third Amendment) Bill, 2076"— have been stalled in Parliament for about five years. Political leadership has failed to push these bills through.

Effective corruption control requires collaboration across all sectors, levels, and institutions. Sharma of Transparency International stressed that leadership must take this issue seriously. "Corruption control must start from the top. If decision-makers can free themselves from personal interests and prioritize the country's well-being, good governance will be achieved," he said.

Without reforms in the legal system, institutional transparency, and a culture of accountability, resolving the corruption issue remains a distant dream. Without concrete strategies and effective implementation, Nepal’s aspirations for good governance remain unfulfilled.