Private sector should be out of CIAA jurisdiction: PM

 Kathmandu, Apr. 21

Prime Minister Pushpa Kamal Dahal Prachanda has said that the private sector should be out of the jurisdiction of the Commission for the Investigation of the Abuse of Authority (CIAA).

Talking to a delegation of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) led by its newly elected President, Chandra Prasad Dhakal, Prime Minister Prachanda said that the provision that the CIAA could look into the matters of the private sector would be removed from the proposed bill made to amdned the CIAA Act.

In the meeting, the PM said that he was always ready to address the problems of the private sector and create an environment where the businesses can work without any constraints. He expressed happiness that preparations are being made to organise an investment conference in India in collaboration with the FNCCI during his forthcoming visit to the southern neighbour.

The bill made to amend the CIAA act which was sent to the House of Representatives from the National Assembly recently, has a provision that allows the CIAA to investigate the cases of the private sector. Until now, the anti-graft body is allowed to only investigate the government institutions or that use the public funds.

Dhakal had requested PM Prachanda to remove the provision proposed in the bill. He pointed out that the private sector, which accounts for more than 80 percent investment in the business and economy, and accounts for more than 80 per cent employment in teh country, will be discouraged and the investment environment will deteriorate if the provision is passed.

According to Article 239 of the constitution, the CIAA cannot look into the matters of the private sector. The FNCCI had already drawn the attention of Defense and Law Minister Purna Bahadur Khadka on the matter.

Similarly, citing non-disbursement of loans despite the availability of liquidity in the banking system Dhakal drew the attention of Prime Minister Prachanda that policy measures should be taken immediately to reduce the interest rate.

He also said that there was a need for restructuring and rescheduling of loans since the market is not functioning well.

"The ability to pay the interest on the loan is decreasing. Bad loan ratio of banks has also reached around 4 per cent," Dhakal said.

Published in The Rising Nepal daily on 22 April 2023.