KATHMANDU, MAY 12 -
Agitating travel trade entrepreneurs have rejected a probe panel formed
by the government to look into charges of financial irregularities at
the Nepal Tourism Board (NTB) for not including any representative from
the private sector.
The Tourism Ministry created the three-member investigation committee
on Sunday bowing to a 12-day-long protest movement by the private
sector. The body was formed by a ministry-level decision.
Travel traders launched the demo after accusing some of the NTB top
brass of committing irregularities by amending its Financial Bylaws in
contravention of the Public Procurement Act (PPA), which lays down the
rules for procurement by public entities.
The probe committee led by Purna Chandra Bhattarai, joint secretary of
the ministry, has been given 15 days to submit a report. The other
members of the body are an under secretary of the Finance Ministry and
an account officer of the Tourism Ministry.
The ministry’s move follows criticism by lawmakers that the government
has turned a deaf ear to the “financial irregularities” uncovered by the
private sector at the NTB. On Friday, legislators representing various
political parties had asked the government to settle the issue
immediately by forming an investigation committee.
The committee has been entrusted with the task of studying the amended financial bylaws and recommending necessary action.
Likewise, it has been told to investigate the NTB’s income and
expenditure for the past three years and advise the government on the
measures to be taken if financial misconduct is detected.
Other tasks given to the committee are studying the complaints filed
against NTB at the Commission for Investigation of Abuse of Authority
and other agencies, looking into the expenditure of tax money collected
by issuing Trekkers Information Management System (TIMS) cards to
foreign trekkers and recommending better ways to manage it.
The ministry has appealed in a press statement to the agitating travel
traders to withdraw their intensifying protest against the NTB. However,
the disgruntled entrepreneurs said that the committee was not
acceptable to them as it has not included any private sector
representatives.
“We had asked the government to form a high-level committee so that the
issues would be exposed,” said Ramesh Dhamala, president of the
Trekking Agencies’ Association of Nepal which has been leading the
private sector movement.
“In fact, the committee formed under the ministry’s staff could
manipulate the matter,” Dhamala said, adding that they would be
continuing the movement unless the government meets their demand.
The amended bylaws that have upset the tourism industry have given the
NTB’s chief executive exclusive rights to spend freely in excess of the
limit set by the PPA.
The bylaws also allow the board to award contracts without competitive
bidding even though the act says that tenders should be called before
doing so.
Under the amendments to the Financial Bylaws that give sweeping powers
to the NTB boss to dispense cash, the CEO can spend up to Rs 10 million
at a time for tourism promotion activities inside the country.
Similarly, the chief can spend $ 400,000 at a time outside the country
without following any due process of the PPA. The CEO has also been
given the power to spend up to $ 400,000 at a time through its honorary
representatives and firms. As per the new rules, the NTB can procure
goods and services worth up to Rs 2.5 million through a quotation. The
board can also purchase goods and services including promotional
materials through a single supplier directly through a written proposal.

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