No cash to MPs, says Khatiwada

Kathmandu, May 31

Finance Minister Dr. Yuba Raj Khatiwada on Friday said that the budget allocated for the Election Constituency Development Fund would not be given in cash in the hands of the parliamentarians.

He has been defending the move following backlash from the civil society and experts.

"The fund is not the programme to deliver cash in the hands of the lawmakers. It is a special arrangement to address the special developmental need of the respective area," he said while addressing the fifth National Assembly of Auditors' Association of Nepal (AUDAN) in the capital.

Dr. Khatiwada said that every rupee allocated for the programme would be scrutinised with auditing, therefore, the expenditure and activities should be transparent.

"The Government must be the most transparent institution in the country. It must be accountable for every action it performs," he said. "So the auditors should play a role in presenting the actual balance sheet and maintaining transparency while reporting the accounts of the government agencies, cooperatives and Non-Government Organisations," he added.

He urged them to warn the government themselves and the company to create a good reporting regime.

The Finance Minister said that the auditors had a major role in increasing the government's revenue by reporting the actual balance sheet of the companies or organisations that they audit.

He also urged them to understand the qualitative aspects of auditing like the purpose and rationale of programme execution.

"You have to understand the changed political scenario in the country and latest technological developments in the field. Update yourselves and support the government in utilising resources for the collective benefit of all," said Dr. Khatiwada.

Auditor General Tanka Mani Sharma Dangal said that auditors could contribute to realising the national motion of 'Prosperous Nepal: Happy Nepali'.

"They are the instrument to control corruption and discourage financial leakage and increase the government revenue so they must be work for the government not for themselves and businessperson," he said. "Do not encourage the company that you audit to evade tax, and create multiple audit reports for different purposes," he added.

Stating that the irrelevant execution of programmes or expenditure can be flagged as arrears, Dangal urged the auditors to inspect the rationale of the programme or expenditure that they audit.

Vice-President of the Institute of Chartered Accountants of Nepal (ICAN) Krishna Prasad Acharya said that the auditors were blamed for supporting the financial misappropriation and tax evasion, therefore, they must adhere to professional ethics. He said that the ICAN was implementing reforms in regulation to make the profession more respectable and competitive.

Acharya also said that ICAN has given priority to the capacity building of the auditors and expressed commitment that the institute would work to make the capacity building education more effective.

Likewise, President of AUDAN Mohan Raj Regmi demanded equal treatment to the auditors from the ICAN and said that the discrimination would force them to launch protest programmes.

There are 7,200 registered auditors in Nepal.

Published in The Rising Nepal daily on 1 June 2019.