1

C a r r S w a n s o n a n d R a n d o l p h , L L C

2

This publication was produced for review by the United States Agency for International Development. It was prepared by ARD, Inc-Nepal, ARD,Inc., Contract «Strengthened Rule of Law and Respect for Human Rights in Nepal.» Strengthened Rule of Law and Respect for Human Rights in Nepal USAID Contract Number: 367-C-00-04-00097-00 Contractor: ARD, Inc Man Bhawan, Lalitpur-20, Nepal Tel: 977-1-555-5557/8/9 Frederick G. Yeager Chief of Party

USAID Contractor

ARD, Inc

1

I. ORGANIZING Charged with developing public awareness of the costs of corruption and developing a program for fighting corruption, ARD, the Commission for the Investigation of the Abuse of Authority (“CIAA”), the National Vigilance Center (“NVC”) and 8 NGOs met and developed a plan to promote public awareness and encourage citizen participation in the fight against corruption. The key element in the plan was 5 Regional Anti-Corruption Conferences in the

• Far West • Midwestern • Western • Central and • Eastern

regions of Nepal. Under the plan CIAA with assistance from NVC, the Nepal Judicial Council, Revenue Investigation Department and other government agencies would organize the conferences. A local NGO from each region would be asked to assist in the organization of the Region’s conference. The five towns chosen for the Regional Anti-Corruption Conferences were

• Birgunj - Central • Biratnagar - Easter • Pokhara – Midwestern • Nepalgunj - Western • Dhangadhi – Far West

Conference participants would include local government officials, members of local NGOs and interested citizens. The meeting set the following objectives for the Regional Anti-Corruption Conferences.

• Improve performance of the anti-corruption system • Improve performance of local level organizations contributing to good

governance • Educate the public about its role in fighting corruption • Build strong public support for ongoing efforts against corruption • Build a zero-tolerance culture for corruption • Encourage citizens to demand effective, accountable and transparent

government • Build integrity in the public service and private sectors • Form/develop non-partisan, free and active local forums against

corruption

2

Long-time corruption fighters participate at Birgunj

Students at the Birgunj Conference Women listen attentively in Birgunj

II. Regional Anti-Corruption Conferences

CONFERENCE DETAILS:

Date: 22-23 January 2005 Local co-sponsor: TI International-Birgunj Support Group Participants: 65 Agenda: 6 working papers

• Assessment of the Anti-corruption System in the Country

• UN Convention against Corruption and Nepal

• Building Integrity and Ethics in the Public Service & Financial Disclosure System

• Controlling Revenue Leakage/ Tax Evasion / Financial Crimes etc

• Role of Citizens and Civil Society Against Corruption and for Good Governance

• Performance of Government/Public Institutions at the Local Level

The conference participants unanimously adopted the Birgunj Declaration

Conference Banner

Birgunj

3

SUMMARY

Of BIRGUNJ DECLARATION

♦ All local level government offices shall work and develop their

activities based on public participation, transparency and accountability.

♦ Corruption complaints to be investigated within three months and findings reported to CIAA.

♦ Build and promote alliances among the different agencies; organizations and media working for anti-corruption.

♦ Honor government employees for their commitment and excellent work.

♦ The Regional Administration Office shall take immediate initiatives to discourage and curb marijuana and hemp farming and drug dealing

♦ The business community is morally obligated to strictly follow the Federation of Nepalese Chambers of Commerce and Industry’s Code of Conduct.

♦ No obstruction or resistance shall be made against any reasonable government action based on law for controlling revenue leakage.

♦ Every public office holder must submit required financial statement on time. The department in which the office holder works shall take action against anyone not submitting the financial statement.

♦ School curriculums shall include coverage of the United Nations Convention against Corruption. For this purpose, letter of request to be forwarded to the necessary department.

♦ Civil societies and organizations working to eliminate corruption shall form forums, coalitions and networking groups.

♦ NGOs must adopt and practice transparency and accountability for all financial transactions.

♦ Programs by institutions and the organizations working against corruption at the grassroots level should be fully supported.

4

Biratnagar

CONFERENCE DETAILS:

Date: 19-20 February 2005 Local co-sponsor: ProPublic Participants: 119 Agenda: 6 working papers

• CIAA Anti-corruption Role and Local Initiatives • Monitoring Property/Assets of Public Post Holders • Role of Government Offices in Controlling Corruption at Local Level • Role of Civil Society against Corruption • UN Convention against Corruption and Nepal • Role of Revenue Investigation Department in Controlling Revenue

Leakage

The conference participants unanimously adopted the Biratnagar declaration

Presenters at Biratnagar Conference

Conference Banner

5

SUMMARY

Of BIRATNAGAR DECLARATION

♦ Local level government public relations offices shall develop a

suitable internal mechanism to increase public participation, transparency and accountability.

♦ Corruption complains shall be investigated within three months and reported to CIAA.

♦ Anti-corruption government agencies shall work with civil society organizations and media groups to promote an anti-corruption movement.

♦ Honor civil servants who are friendly and dedicated to the service of common people.

♦ The business community is morally obligated to strictly follow the Federation of Nepalese Chambers of Commerce and Industry’s Code of Conduct.

♦ The business community shall support and assist government action based on law for controlling revenue leakage.

♦ Each public office holder must submit financial disclosure statement on time.

♦ Undertake initiatives to include study of the United Nations Convention against Corruption in the educational curriculum.

♦ Civil society organizations working to eliminate corruption agree to network and to form forums and coalitions.

♦ NGOs must adopt and practice transparency and accountability for all financial transactions.

♦ Programs by institutions and organizations working against corruption at the grassroots level should be fully supported.

♦ Government agencies and civil society should cooperate and coordinate to regularly organize anti-corruption conferences throughout Nepal.

♦ Adopted guidelines for the Regional Administration Office and the chiefs of all government offices in the region.

6

The Biratnagar Conference also adopted guidelines for government offices.

GUIDES FOR GOVERNMENT OFFICES

ADOPTED IN BIRATNAGAR

♦ To be committed to controlling corruption ♦ To increase transparency in activities and services provided by

regional/local government offices ♦ To develop procedures for discussing every month the status of

corruption in regional/local government offices ♦ Government office employees must study and keep complete

information about the Rules and Regulations of their respective official activities

♦ To take precautionary measures and timely action to prevent corruption in government offices

♦ To maintain impartiality in official work ♦ To take legal action against any employee found guilty of

corruption ♦ To monitor subordinate offices regularly so as to bring timely

improvement in the law enforcement process ♦ To develop a system of dialogue and interaction between

stakeholders in the fight against corruption ♦ Any complain of corruption which has been filed before the

Regional Administrator and CDOs must be investigated properly and a progress report should be submitted to CIAA every month

♦ To take notice of any report of corruption published in national or local newspapers and to investigate the matter according to existing laws

7

CONFERENCE DETAILS:

Date: 25-26 April 2005 Local co-sponsor: Mechi Mahakali Media Society Participants: 100 Agenda: 5 working papers § CIAA Anti-corruption Role and Local Initiatives § The Importance of Technical Auditing to Prevent Corruption § Role of Government Offices in Controlling Corruption at Local Level § Efforts of Revenue Investigation Department in Controlling Revenue

Leakage and Role of Private Sector in this Regard. § The Role of Civil Society Against Corruption.

POKHARA

Presentation by CIAA Joint Secretary

Conference Banner

8

The conference participants unanimously adopted the Pokhara Declaration.

Reviewing the conference materials

Young students listening attentively

Pokhara Regional Anti-Corruption Conference

9

Following the Pokhara Regional Anti-corruption Conference, Krishna Hari Baskota, Director General of Department of Customs, made a follow-up visit to the Kaski model offices named in the Pokhara Declaration, i.e., District Development Committee, Inland Revenue Office and District Police Office. He found that they had written a citizen’s charter, organized a help desk, developed efficient complaint handling and in general were providing quality services to Kaski District residents

SUMMARY Of

POKHARA DECLARATION

♦ All government offices agree to enforce the directives issued to make public services more effective and to improve service delivery systems.

♦ Develop model offices at o District Development Committee Office,

Pokhara, Kaski o District Police Office, Pokhara, Kaski o Internal Revenue Office, Pokhara, Kaski

as model offices of service delivery and start the process of reform.

♦ Journalists agree to publish regular reports on corruption and anti-corruption articles and to encourage and promote the best anti-corruption office and the employee with excellent job performance.

♦ The principle and concept of ‘technical auditing’ shall be adopted and practiced in all development and construction projects.

♦ Initiate necessary actions to include corruption control and integrity system in school and university curriculums.

♦ Initiate measures to make the tax-paying and tax-collection system more flexible and prevent revenue leakage by ‘under billing.’

♦ Cooperate to enforce the Code of Conduct issued by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in commerce and industry.

♦ Government employees promise to be more open, participatory, reform-minded, transparent, honest and accountable in coming days.

♦ Share information about corruption prevention and control with all anti-corruption agencies.

♦ To support and express solidarity for any anti-corruption movement jointly initiated by government

10

CONFERENCE DETAILS:

Date: 24-25 AUGUST 2005 Local co-sponsor: SWATI Participants: 250 Agenda: 8 working papers

• The Required Role of Government Agencies against Corruption at the Local Level and CIAA’s Expectations.

• Efforts of Revenue Investigation Department in Controlling Revenue Leakage and Role of Private Sector in this Regard

• The Responsibility of a Conscious Citizen against Corruption • UN Convention against Corruption • Role of NVC in Corruption Control • Three papers by civil society representatives

NEPALGUNJ

Speakers at the opening ceremony

Nepalgunj women participate in the conferences

Conference Banner

11

The conference participants unanimously adopted the Nepalgunj Declaration.

SUMMARY Of

NEPALGUNJ DECLARATION

♦ Banke local public offices encouraged to be more service oriented with easy, accessible, accurate, speedy service for all citizens and encouraged to follow the Code of Conduct.

♦ Conference suggestions for curbing corruption implemented in all government offices with amendment in administration, working style and upgrading of physical facilities and a progress report submitted to concerned departments, ministries, CIAA and NVC.

♦ A mechanism developed and followed for the monthly meeting of the District Administration Office heads to handle and resolve complaints of corruption.

♦ Corruption complaints to be investigated within three months and findings reported to concerned authority.

♦ Concerned authority to take immediate action against any national or daily newspaper publishing speculative articles about corruption.

♦ It is the duty of public officials to submit the property statement formwithin the mentioned timeframe.

♦ Technical auditing principles and concepts applied in all development and construction projects.

♦ Anti-corruption agencies, public offices, NGOs, private sector, civil society and journalists to work together against corruption.

♦ Honor government employees for committed and outstanding work. ♦ Cooperation to enforce the Code of Conduct issued by the Federation

of Nepalese Chambers of Commerce and Industry (FNCCI). ♦ In lawful actions for enforcement of cases of revenue leakage, there

will not be any obstacles to or hindrance of prevention or minimization of revenue leakage.

♦ Initiate measures to make the tax-paying and tax-collection system more flexible and prevent revenue leakage by ‘under billing.’

♦ School curriculums shall include coverage of the United Nations Convention against Corruption. For this purpose, letter of request to be forwarded to the necessary department.

♦ All NGOs working on anti-corruption will be brought under one umbrella.

♦ NGOs must adopt and practice transparency and accountability for allfinancial transactions.

♦ Programs by institutions and the organizations working against corruption at the grassroots level should be fully supported.

♦ The general public shall be fully and accurately informed about corruption case and preventive measures for corruption.

♦ Concern authorities to be immediately notified of any corruption activities likely to occur.

12

CONFERENCE DETAILS:

Date: 13-14 AUGUST 2006 Local co-sponsor: NGO Federation, District Committee, Kailali Participants: 150 Agenda: 10 working papers

• Policies and Principles to Control Corruption • Role of Nepal Government and UN Convention in Corruption Control • The Problem of Corruption in Local level and the Efforts to Control the

Corruption • The Formation of Local Coordination Forum to Control Corruption, Its

Responsibilities and Challenges • Role of CIAA to Control Corruption • Role of National Vigilance Center in Corruption Control • The Role of Local Administration and Government Sector in

Controlling Corruption • Role of Revenue Investigation Department to Control the Leakages

and Support from the Private Sector • Role of Chamber of Commerce & Industries in Corruption Control in

Local Level • The Role of Local Media in Controlling Corruption and Coordination

from Various Anti-corruption Agencies

DHANGADHIHI

Conference Banner

Members of Parliament inaugurate the Dhangadhi Conference

13

SUMMARY

Of DHANGADHI DECLARATION

♦ A local coordination forum shall be formed. ♦ Government offices, public offices, NGOs & private

sector offices shall abide by fundamental elements and principles of good governance.

♦ Develop mechanism for the monthly meeting of office heads at the District Administration Office discussing corruption and complaints.

♦ Public officials must submit property statements to relevant office on time.

♦ The principle and concept of ‘technical auditing’ shall be adopted and practiced in all development and construction projects.

♦ A public office to be honored and rewarded for excellent service to citizens.

♦ An individual from civil society, journalists, student community and private sector to be honored and awarded for contribution to corruption control.

♦ Federation of Nepalese Chambers of Commerce and Industry Code of Conduct shall be faithfully implemented.

♦ Every sector shall organize special programs for controlling revenue leakage.

♦ Every sector shall support NGOs formed/working for corruption control.

♦ NGOs shall develop a culture of transparency and accountability for their financial transactions.

♦ Conduct anti-corruption awareness programs at higher secondary level schools and colleges.

♦ Conduct special programs against social mal-practices that directly or indirectly promote corruption.

14

A session at the Dhangadhi Anti-Corruption Conference

Kailali Chief District Officer delivers his remarks

USAID official gives his remarks during inaugural session

15

III. REGIONAL CONFERENCES FOLLOW-UP

JUNE 2005:

• CIAA organized an interaction meeting to discuss follow-up • Interaction meeting recommended a Task Force and named NVC Chief

Officer B. K. Prasai as Chairman • Task Force recommends

o Local Coordination Forums at each conference location to implement conference declarations

o Local Coordination Forum to have 21 members o 15 representatives from local government § Chief District Officer § District Administration Office for Corruption Section Officer § Internal Revenue Office § Customs’ Office § Revenue Investigation Office § Municipality § District Development Committee § Land Reform / Land Administration / Land Survey Office § District Government Attorney Office § Road Division Office § Water Supply Office § Irrigation Office § Nepal Electricity Authority § Telecom Office § District Police Office

• 3 representatives from private/business sector

16

o chairman of local chamber of commerce o reputable local business firm o local businesswoman

• 3 representatives from local NGOs o NGO active in anti-corruption activities o Woman member of a local NGO o NGO representing dalits or other marginalize community

• Local Coordination Forum Activities o Collect necessary information on implementation of conference

declarations and monitor the implementation. o Meet monthly to review implementation and report progress to CIAA

and NVC o Coordinate and assist Monitoring Panel field visits

• Monitoring Panel – 5 members o 2 representatives from CIAA o 2 representatives from NVC o 1 representative from ARD ROL

• Monitoring Panel Activities o Meet with Local Coordination Forums o Review Forum activities with § Government Sector § Business Sector § NGO Sector

17

IV. LOCAL COORDINATION FORUMS

14 DECEMBER 2005:

Birgunj Local Coordination Forum Details: Monitoring Panel organizes the Local Coordination Forum

• CIAA Joint Secretary Ratna Kaji Bajracharya explained Forum objectives and duties to local government sector o CIAA pre-selected 15 Forum members

• ARD Anti-Corruption Specialist Mihir Thakur explained Forum objectives and duties to business sector o 20 representatives from Birgunj Chamber of Commerce attend o 20 executive representatives selected 3 Forum members

• NVC Under Secretary Achyut Raj Sharma explained Forum objectives and duties to NGO sector o NGOs selected 3 representatives

• 21 members of Local Coordination Forum met o Decided to develop an annual plan o Named the following offices as model offices § District Administration Office § Land Revenue Office § Customs Office § District Police Office § Local Organization supporting the Forum is Transparency

International Birgunj Support Group

23 DECEMBER 2005: Biratnagar Local Coordination Forum

Details: Monitoring Panel organizes the Local Coordination Forum

• CIAA Joint Secretary Ratna Kaji Bajrachrya explained Forum objectives and duties to local government sector o CIAA pre-selected 15 Forum members

• ARD Anti-Corruption Specialist Mihir Thakur explained Forum objectives and duties to business sector o 20 executive members of the Birgunj Chamber of Commerce selected 3

representatives • NVC Under Secretary Achyut Raj Sharma explained Forum objectives and

duties to NGO sector o NGOs selected 3 representatives o 21 members of Local Coordination Forum met and

o Decided to develop an annual plan • Named the following as model offices

18

o District Administration Office o Land Revenue Office o Customs Office o District Police Office o Local Organization supporting the Forum is ProPublic Biratnagar

5 JANUARY 2006: Pokhara Local Coordination Forum

Details: Monitoring Panel organizes the Local Coordination Forum

• CIAA Joint Secretary Ratna Kaji Bajrachrya explained Forum objectives and duties to local government sector o 17 representatives of government selected 15 Forum members

• NVC Joint Secretary Parajuli explained Forum objectives and duties to business sector o 15 representatives of the Pokhara Chamber of Commerce select 3

member • NVC Under Secretary Achyut Raj Sharma explained Forum objectives and

duties to NGO sector o 10 representatives from the NGO sector select 3 representatives

• Local Organization supporting the Forum is Mechi Mahakali Media Society

9 June 2006: Nepalgunj Local Coordination Forum

Details: Monitoring Panel organizes the Local Coordination Forum

• Monitoring Panel discusses reducing the number of coordination forum members to make the representation more equal between the three sectors. The issue discussed with the local government sector which agreed that 7 offices were necessary for effective implementation of anti-corruption activities

• CIAA Joint Secretary Ratna Kaji Bajrachrya explained Forum objectives and duties to local government sector o 15 representatives selected 7 representatives

• NVC Under Secretary Achyut Raj Sharma explained Forum objectives and duties to NGO sector o 30 representatives from the NGO sector select 3 representatives

• ARD Anti-Corruption Specialist Mihir Thakur explained Forum objectives and duties to business sector o 11 executive members of the Nepalgunj Chamber of Commerce

selected 3 representatives • Local Organization supporting the Forum is Swati Nepal, Nepalgunj Group

15 August 2006: Dhangadhi Local Coordination Forum

19

Details: Monitoring Panel organizes the Local Coordination Forum

• Government sector selected 7 representatives • Nepalgunj Chamber of Commerce selected 3 representatives • NGOs caucus and after long debate selected 3 representatives

20

V. TRAINING

“Orientation and Training” Workshop for Anti-Corruption Local Coordination Forum Members

20-22 August 2006: Workshop Objectives:

• Orient Local Coordination Forum (“LCF”) members on roles and functions • Identify and analyze local level problems & strengths • Plan, implement and monitor local anti-corruption activities with special

focus on community education, service delivery, controlling revenue leakages and prevent corruption in public works and procurement

• Plan follow-up and monitoring modalities for LCF activities • Develop indicators of corruption control to evaluate LCF effectiveness

Participants: 30 participants from the 5 districts

• 11 government officers including 4 Chief District officers and 1 Assistant Chief District Officer

• 15 NGO representatives including 3 women • 4 business sector representatives

Papers Presented: • Controlling Corruption: Responsibilities of Local Administration • Importance of Community Education in Controlling Corruption • How to Improve Service Delivery System to Address Corruption at the Local

Level • Controlling Revenue Leakage: A Challenge for Local Administration • Ethics in Procurement and Public Works to Control Local Level Corruption • What Can Be Done to Control Local Level Corruption: A Three Sectoral

Approach • Developing “Follow-up and Monitoring Modalities” and “Indicators of LCF

Effectiveness in Corruption Control to Evaluate LCF Activities”

Activities: • Presentations by each LCF • Break out Groups engage in SWOT analysis • Each LCF writes an action plan to be submitted to and approved by CIAA • Tour of CIAA building and meeting with CIAA Commissioners and

Department Heads

21

Workshop participants touring the CIAA building

22

VI. RESULTS 1. Approximately 700 people sensitized to corruption, impact of corruption and need to control corruption 2. Cross-section of people participated - young students, older people, women, men, government officials, businessmen, civil society participate 3. Interaction between Government Officials and local citizens 4. Declarations giving a plan of action for controlling corruption 5. Local Coordination Forums organized in the 5 regions to implement conference

declarations 6. Local Coordination Forum members trained in role and function 7. Each Local Coordination Forum has written an action plans for their region 7. Monitoring Panel monitoring Local Coordination Forum activities

23

VII. PHOTOGRAPHS

Director General of Department of Customs Krishna Hari Baskota speaks at Pokhara Conference

Listening in Biratnagar

Tea Break in Birgunj

24

Speakers at Nepalgunj’s Opening Ceremony

TV Coverage at Birgunj

CIAA Commissioner Making a point in Pokhara

25

Pokhara FNCCI members listen to Pokhara Speakers

A participant comments in Dhangadhi

Orientation and Training Workshop for Anti-Corruption Local Coordination Forum

26

Prepared by ARD, Inc. Nepal Rule of Law Project 29 August 2006