TRANSPARENCY INTERNATIONAL NEPAL

TRANSPARENCY INTERNATIONAL NEPAL

ANNUAL PROGRESS REPORT

2011/12

Presented at the

17th Annual General Meeting (AGM), Kathmandu

5th October 2012 by

Secretary General Shree Hari Aryal on behalf of the Executive Committee (EC)

Annual Progress Report 2011/12- Transparency International Nepal (17TH

AGM, 5th

October 2012) Page 1

Table of Contents 1. INTRODUCTION .............................................................................................................................................................................. 2 2. COUNTRY CONTEXT ....................................................................................................................................................................... 2 3. PLAN APPROVED BY 16

th ANNUAL GENERAL MEETING (AGM) ...................................................................................................... 3

3.1 Strategic areas ...................................................................................................................................................................... 3 3.2 Programs .............................................................................................................................................................................. 3

4. ADVOCACY WITH GOVERNMENT OF NEPAL .................................................................................................................................. 4 4.1 Revoking life-long facility to retired VVIPs ........................................................................................................................... 4 4.2 Rationalizing Parliamentarians' fund .................................................................................................................................... 4 4.3 Standardizing Public works ................................................................................................................................................... 4 4.4 Stopping capital flight ........................................................................................................................................................... 4 4.5 Enforcing Inspection and monitoring system in GoN ........................................................................................................... 4 4.6 Fair management of funds at the local level ........................................................................................................................ 4 4.7 Accountability in peace process ........................................................................................................................................... 4 4.8 Honouring public perception on corruption ......................................................................................................................... 4 4.9 Integrity appeal .................................................................................................................................................................... 4 4.10 Transparency in sale of arms and ammunition .................................................................................................................... 5

5. PROGRAM AND ACTIVITIES AFTER THE 16TH AGM ....................................................................................................................... 5 5.1 Promoting Integrity and Accountability (IA) program .......................................................................................................... 5

5.1.1 Researches 2011-12 ................................................................................................................................................. 5 5.1.1.1 Recommendations for anti corruption measures in the new constitution ........................................ 5 5.1.1.2 Assessment of National Integrity System (NIS) .................................................................................. 6 5.1.1.3 Gap Analysis of United Nations Convention against Corruption (UNCAC) ......................................... 7 5.1.1.4 Review of Government of Nepal Anti corruption strategy and action plan ....................................... 7 5.1.1.5 Umbrella and sectoral code of conduct ............................................................................................. 8 5.1.1.6 Management of Funds by Local Development Bodies ....................................................................... 9 5.1.1.7 Anti-corruption & oversight agencies and relevant laws ................................................................... 9 5.1.1.8 Foreign Aid Policy from anti-corruption perspective ......................................................................... 9 5.1.1.9 Project cost ......................................................................................................................................... 9

5.1.2 Network And Campaign ........................................................................................................................................ 9 5.1.2.1 Mass meeting for solidarity ................................................................................................................ 9 5.1.2.2 Classification of public information .................................................................................................. 10 5.1.2.3 Dialogue on UNCAC .......................................................................................................................... 10 5.1.2.4 District outreach ............................................................................................................................... 10 5.1.2.5 International Conference to build support on anti-corruption ........................................................ 10 5.1.2.6 Collaboration with TIN’s district partners ........................................................................................ 10

5.2 Parliament Watch (PW) study ............................................................................................................................................ 10 5.3 Advocacy and Legal Advice Centre (ALAC) ......................................................................................................................... 11 5.4 South-South Asia Exchange (SSE) Program ......................................................................................................................... 12

6. NEW PROGRAMS ......................................................................................................................................................................... 13 6.1 Advocacy and Legal Advice Center (ALAC) and Development Pact (DP) ............................................................................ 13 6.2 Governance and Accountability (Strategic Planning) ......................................................................................................... 13 6.3 National Integrity Context and Systems Analysis (NICSA) .................................................................................................. 14

7. SEMINARS AND WORKSHOPS ...................................................................................................................................................... 14 7.1 Ethical values ...................................................................................................................................................................... 14 7.2 Corruption Barometer and Index ....................................................................................................................................... 14 7.3 NGO Outreach .................................................................................................................................................................... 14

8. INTERNATIONAL ENGAGEMENTS ................................................................................................................................................ 15 8.1 TIB Outreach, Dhaka ........................................................................................................................................................... 15 8.2 Debriefing and homecoming, Bangkok ............................................................................................................................... 15 8.3 NICSA training, Male ........................................................................................................................................................... 15 8.4 Asia Pacific meeting, Seoul ................................................................................................................................................. 15 8.5 Review and Planning, Kathmandu ...................................................................................................................................... 15 8.6 ALAC training, Baku ............................................................................................................................................................ 15 8.7 Media training, Kathmandu ................................................................................................................................................ 15 8.8 Annual Meeting, Berlin ....................................................................................................................................................... 15

9. INSTITUTIONAL MATTERS ............................................................................................................................................................ 16 9.1 AGM.................................................................................................................................................................................... 16 9.2 Responsibilities of EC members .......................................................................................................................................... 16 9.3 Secretariat .......................................................................................................................................................................... 16 9.4 New Agreements ................................................................................................................................................................ 17 9.5 Finance ............................................................................................................................................................................... 17 9.6 Award ................................................................................................................................................................................. 17 9.7 Affiliated Organizations ...................................................................................................................................................... 17 9.8 Meetings ............................................................................................................................................................................. 18

10. FUTURE STRATEGIC PLAN 2012-16 .............................................................................................................................................. 18 11. CONCLUSION ............................................................................................................................................................................... 19


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1. INTRODUCTION Transparency International (TI) is a civil society organization based in Germany that brings people together to fight corruption. Since its founding in 1993, TI has played a leading role in building momentum for a movement against corruption on a global scale.

Transparency International Nepal (TIN), founded in 1996, is a part of TI's coalition of nearly 100 national chapters and chapters-in-formation. It is registered as a non-profit organization at the Kathmandu District Administration Office (DAO) and is affiliated to the Social Welfare Council (SWC) Nepal. Its mission is to work towards a corruption-free Nepal guided by the core values of Democracy, Integrity, Transparency, Accountability, Justice, Solidarity, Courage and Honor.

TIN is a volunteer-based organization with members representing a cross-section of the Nepalese society. It operates with an Executive Committee and a Secretariat working closely to execute organizational policies and programs. The Executive Committee (EC) is elected by the General Assembly (GA) of the organization which meets annually. Election of the President and EC members is held once in every two years. EC produces organizational policies, presents annual progress and financial reports to the GA for approval. At present there are 50 general members, a 9- member elected EC, 10 advisory council members and 11 staff associated with TIN.

TIN has a network of 16 Affiliated Organizations (AO) in different districts of Nepal, which function as its outreach. It has strong relationship with like-minded organizations, media and several state institutions. Through its continuous activism over a decade, TIN has established itself as a leading anti-corruption agency in Nepal.

Corruption is a cross-cutting issue which inhibits all aspects of Nepal’s development. TIN intends to tackle the problem of corruption by encompassing political, legal, social, educational and institutional measures. Politically, it has been aiming to forge a general consensus to profile anti-corruption as a national priority. Legally, it is seeking to strengthen integrity provisions in constitution and laws. Socially and educationally, TIN aims to educate the public about the evils of corruption. Institutionally, it contributes as a catalyst for change through advocacy and public engagement.

In the long term, TIN is engaged in advocating for policy level reforms at the highest level of the state- the Executive, Legislature and Judiciary. For mid-term results, 6 programs- Advocacy and Legal Advice Center (ALAC), South South Asia Exchange (SSE), Promoting Integrity and Accountability (IA), Advocacy and Legal Advice Center and Development Pact (ALAC & DP), Governance and Accountability (GA) and National Integrity Context and System Analysis (NICSA) are being implemented. After the expiry of its long-term strategy in 2011, TIN is currently redefining its direction considering the socio-political reality. A new strategic plan is being framed to guide its operations from 2012.

2. COUNTRY CONTEXT Nepal, one of the least developed countries in the world, underwent a long period of armed-conflict followed by a highly promising peace deal. Thereafter, it is in a period of post-conflict transition with anticipated socio-political reform, a situation which is profoundly influenced by political considerations and public attitude.

The long-awaited reforms in the ‘New Nepal’ were supposed to begin with a new constitution. However, after 5 years of continuous disputes and squabbling between main political parties, a common ground for reforms could not be worked out. As a result, the term of Constitutional Assembly/Legislature Parliament, which had been extended 4 times beyond its original mandate, expired without the declaration of a new constitution. Peoples' hopes and aspiration for a new beginning were trampled.

International Crisis Group, in “Nepal’s Constitution (I): Evolution Not Revolution” and “Nepal’s Constitution (II): The Expanding Political Matrix” asserts that after political parties failed to deliver promises of a New Nepal, Nepal’s political environment manifests uncertainty and minimal accountability. The situation has become challenging due to lack of parliament and absence of trust between major political parties. Without a new constitution, and having only an interim constitution and an interim government, Nepal is slipping into a state of lawlessness.

The desire of the people for a New Nepal was crushed partly due to incapability of the coalition government in ensuring rule of law and fairness. Corruption and lack of accountability, which have become integral elements of governance, further contribute to political precariousness. This reality was resonated in the


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Failed State Index 2012 in which for the second year in a row Nepal was ranked 27th ‘most failed state’ in the world.

At present, national politics is fragmented into different interests with no consensus forthcoming on any issue. Nepal has seen a series of polarizations at the political party level with effects felt at the societal level. Political factions have been more interested in occupying the seat of power to enjoy state treasury. Corruption is evident in appointments, transfers, procurement, service delivery, development works, revenue collection and in a range of activities where state resources are at stake. More often, state services and funds intended for peoples' development do not reach the beneficiaries.

In 2011, Transparency International (TI)’s Corruption Perception Index (CPI) ranked Nepal 154th among 183 countries surveyed with a score of 2.2 making Nepal the second most corrupt country in South Asia after Afghanistan. The lack of consequential cost to actors involved in corruption with a low risk of being reprimanded has given rise to corruption. The culture of corruption has seeped into both state and society with malaise and weary acceptance. State apathy as a consequence of underpowered people is a major constraint that stimulates corruption. The present situation demands corruption to be treated, however, it has been suspended and sidelined from the national agenda.

The major political parties in the now-dissolved Constituent Assembly (CA) had promised control of corruption with good governance. However, the follow-up was disappointing. In addition to being unable to induce accountability, constitutional bodies and anti-corruption/oversight agencies like Commission for the Investigation of Abuse of Authority (CIAA), Auditor General's Office (AGO), Public Service Commission (PSC), Election Commission (EC) were calculatedly kept weak. Despite pressures from the civil society and media, appointments of chiefs and members to these bodies were not made for a long time thereby diluting the strength of these bodies. These bodies were led by deputies, government employee or on ad-hoc basis for a long time leading to constitutional and legal questions being asked about their validity. Vested interests of the main parties remained on appointing their supporters and sympathizers as chiefs and members of the bodies.

On this backdrop, some reforms initiated by the state could not result in uplifting public mood about the status of corruption in Nepal. The parliamentary ratification of United Nations Convention against Corruption (UNCAC) and its implementation-plan indicated a commitment in dealing with corruption. The government initiated popular measurers like ‘hello sarkar (government)' signaled steps towards providing better service delivery. Actions taken by the Judiciary to have some high profile politicians and former ministers convicted and jailed raised some expectations. In addition, a number of high profile cases filed by the CIAA at the court as well as their directives to government agencies caught public attention. However, due to lack of political strength of character and intricacies of coalition politics, such important moves could not induce a sense of realism, in a situation where corruption became a part of a large section of the population. This was justifiably highlighted by the TI report titled 'Daily lives and Corruption: Public Opinion in South Asia ' in 2011, which states that the majority of the people in Nepal perceive corruption to be on the rise with numerous government sectors highly infected and the government counter measures ineffective.

3. PLAN APPROVED BY 16th ANNUAL GENERAL MEETING (AGM) Every year TIN presents its future strategic areas and programs at the AGM. During the last AGM, the followings were presented discussed and approved for execution with a budget of NPR 18.9 million as income and NPR 16.8 as expenditure:

3.1 Strategic areas

National Integrity • Government and Politics Oversight Agencies • Education and Health Budget and Fiscal Management • Research and Education Monitoring, Supervision and Compliance • Anti Corruption Knowledge Sharing Civic Engagement • District Outreach Code of conduct • Development Aid

3.2 Programs

Promoting Integrity and Accountability (IA) Parliament Watch (PW)


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Advocacy and Legal Advice Centre (ALAC) South-South Asia Exchange Program (SSE)

4. ADVOCACY WITH GOVERNMENT OF NEPAL As a civil society organization TIN's role is more of a watch-dog and a pressure group. It keeps an eye on issues that affect the nation and bring matters to the attention of policy makers and the public. TIN feels responsible to take up issues that infect a civilized society and hopes for a positive response from the government, in absence of which its advocacy become futile. In this process, it acts as a conduit that advocates with authorities for people friendly policies and practices against rampant corruption rather than being involved in individual cases.

After the 16th AGM, many pertinent issues were brought to the attention of the Government of Nepal in order to advocate for policy changes. Some examples are cited below:

4.1 Revoking life-long facility to retired VVIPs

During 26th July 2012, TIN wrote to the PM protesting against the decision to provide life-long facilities to former VVIPs, people who had served the state in different capacities. Stating that public resources are scarce and moves to provide fuel, vehicle, housing and office support unsustainable in the long run, TIN asked to revoke the decision.

4.2 Rationalizing Parliamentarians' fund

On 12th February 2012, PM's attention was drawn on the arbitrary nature programs run by the Parliamentarians under the Nepal Constituency Development fund. TIN alerted the PM on the unsubstantiated spending and questioned the rationale behind the fund.

4.3 Standardizing Public works

On 12th February 2012, a letter was written to the PM to draw his attention to the low standards of public works due to the use of inferior quality of materials leading to untimely damages. Emphasizing the fact that this trend hinders development, TIN recommended the Prime minister to identify officials responsible for creating such loss and penalize them.

4.4 Stopping capital flight

On 12th February 2012, a letter was written to the PM on the reported outward flight of large sums of capital from Nepal. TIN requested the government to initiate a high level committee to carry out investigation in this regard.

4.5 Enforcing Inspection and monitoring system in GoN

On 27th September 2011, the government was asked to enforce inspection and monitoring functions by the superior bodies of their subordinate ones as per the existing laws so that irregularity and corruption could be checked timely.

4.6 Fair management of funds at the local level

On 27th December 2011, a letter was sent to PM to draw his attention on the reported misappropriation of funds by the all-party-mechanism at the local levels. The letter mentioned TIN's deep concern and requested government and political parties to put an end to this practice as it has created a very distrustful image for them.

4.7 Accountability in peace process

On 27th December 2011, TIN wrote a letter to the PM demanding to make public the details of expenses made by the government on account of cantonment and combatant management.

4.8 Honouring public perception on corruption

On 26th December 2011, the TI report titled 'Daily lives and Corruption: Public Opinion in South Asia' was presented to the PM, which had highlighted the trend of increasing corruption in Nepal with political parties as the main contributing agents. In addition, peoples' belief that government initiatives were not enough to control corruption and various offices where it still is rampant, were highlighted.

4.9 Integrity appeal

On 26th December 2011, an appeal for integrity prepared during the anti-corruption day (December 9) was brought to the attention of the Prime Minister. The appeal listed measures to be adopted by the Nepal


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government, political parties, civil service and civil society to make anti corruption campaigns more effective.

4.10 Transparency in sale of arms and ammunition

On 6th August 2011, TIN wrote to the PM on the reported discrepancies and lack of transparency on the selling of the used arms and ammunition of Nepal Army which had held great archeological value. TIN appealed for bringing transparency on the deal reminding the government of violation of Nepalese acts during the auction of those antique weapons.

The high level advocacy was made purposeful through press releases to media and stakeholders. Every issue that was brought to the attention of the Government of Nepal was disseminated to the public through the media. Despite encouraging public receptivity on the issues that TIN had raised, the response from the government was not encouraging.

The 10 issues brought to the attention of the government this year was in addition to over 20 important issues like the selection of judges, political party finance, fulfilling vacancies in constitutional bodies, budgetary reform, government financial aid, clearing audit findings etc that were highlighted last year.

5. PROGRAM AND ACTIVITIES AFTER THE 16TH AGM As per the mandate of the 16th AGM, TIN Executive Committee (EC) implemented programs and activities, details of which are mentioned below:

5.1 Promoting Integrity and Accountability (IA) program

To promote integrity and accountability in the Nepalese society, TIN is engaged in a three-year (2011-13) program named Promoting Integrity and Accountability (IA), supported by the Norwegian Ministry of Foreign Affairs, with NoK 1.2 million. Using research and campaign as major tools, the program addresses corruption through the six frameworks such as National, Political, Policy/ Legal, Civil Society, International and Local.

5.1.1 Researches 2011-12

5.1.1.1 Recommendations for anti corruption measures in the new constitution

The research carried out by Consultant Advocate Kamal Raj Thapa, analyses anti corruption provisions in the interim constitution and prescribes necessary measures to make them stronger. Various reports and concept notes tabled by the CA committees were analyzed and a list of recommendations submitted to the Chair of the Constitutional Council, Speaker of the Constitutional Assembly, and Prime Minister's Office for consideration. The main recommendations are:

Ensure statements towards controlling impunity and corruption with promotion of integrity and good governance in the preamble of the constitution

Ensure fundamentals and mechanisms of a National Integrity System like democratic system, rule of law, responsible government, independent judiciary, parliament with proper vision, independent media, neutral civil service, right to information and basic fundamental rights

Arrange preventive responsibilities to government's own anti corruption agencies except investigations conducted by the constitutional body

Make political parties provide audit report compulsorily to the public who request it, failure to do so may subject to punishment by the Election Commission such as cancellation of registration

Delist services of employees of court and constitutional body from public service act

Provision investigation of public officials including the head of the state even after retirement if found involved in corruption

Make provision for an impeachment committee of political parties in the parliament for Chief Justice and Chief of Constitutional bodies

Ensure the government prepares a balance sheet including national revenue, expenses, capital and liabilities, audited by a supreme audit institution and present it to the parliament

Institute a code of conduct for the vital organs of the state in consultation with constitutional bodies


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Introduce a statement of assets to be provided by the public officials to the institution on control of corruption within 21 days of appointment and 35 days of fiscal year-end. In the case of public service appointees, law for protection of private information should not be applicable

5.1.1.2 Assessment of National Integrity System (NIS)

The study NIS 2012 undertaken by senior journalist Rama Krishna Regmee focuses on 13 components known as pillars of national integrity: Legislature, Executive, Judiciary, Political Parties, Anti Corruption Agencies, Electoral Management Body, Supreme Audit Institution, Public Sector, Law Enforcement Agencies, Media, Civil Society and Private Sector. These were evaluated and scored on their governance functions in the overall integrity system.

General interpretation of the assessment reveals that the institutions responsible for guaranteeing good governance, law enforcement and delivery of services appear feeble. The government (Executive), rule of law (Law Enforcement Agencies) and delivery of goods and services (Public Sector) is at a very low point. The weaknesses of such agencies clearly indicate impunity and non-delivery of service to the public.

Three Pillars - Anti-Corruption Agencies, Political Parties, and Civil Society – also have the same weak score. So is the case of the Legislature and Private Sector. The score places Electoral Management Body, Supreme Audit Institution, Judiciary and Media in moderate position, in a formality mode only. They appear to be squeezed in between the highly dominating Political Parties and weak Law Enforcement Agencies and Public Sector.

The study states that provisions for NIS are in place in law and in structure but implementation is poor. Similarly, there is no balance between the capacity, governance and role of the pillars. The inabilities of NIS Pillars are responsible for the growth of unaccountability and poor administration in the country.

A list of recommendations is suggested to facilitate a future road-map for NIS in Nepal:

A campaign be launched re-educating people to bring about a renaissance of values in politics, society, economy and culture

Allow the executive to function in a politically stable environment, run the administration of all public bodies from the centre to the districts through norms of civil administration and without political interference

The Legislature should be instrumental in developing policies, ensuring national interest and making government implement directives of Parliamentary Committees

The Judiciary should keep its internal working free from influences. It should swiftly act on pending cases to earn people's trust as a place of prompt responsiveness, fair treatment and just decisions

The political parties should draw a line of separation between the government and themselves to allow civil service and other NIS Pillars to function independently

Legal provisions for avoiding long term gaps in vacancies in leadership positions of Anti-Corruption Agencies be worked out immediately. Legal provisions on conflict of interest and whistle-blowing be inserted forcefully in all codes of conduct of public bodies

The Electoral Management Body should undertake measures to regulate campaign and poll expenses of parties. Legal provisions for compelling political parties to submit campaign expenses should be enforced and failure penalized legally

Fresh legislation for compliance of suggestions of Supreme Audit Institution should be made immediately. Specific provisions need to be made for SAI to ensure improvement of public financial management

The civil service and law enforcement agencies be allowed to function as per law with consideration to directives of Public Service Commission. They should be adequately resourced and equipped

Legal provisions be made and implemented to make journalism a safe profession. The line separating owners' role in the news room and that of the editor should be drawn through appropriate legislation

Civil Society to act in accordance with the spirit and provision of applicable laws undertaking specific measures to be independent


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The crisis of confidence between the private sector and the government be addressed through an investment friendly environment in which problems of power, infrastructure and labor be addressed

5.1.1.3 Gap Analysis of United Nations Convention against Corruption (UNCAC)

The study conducted by consultant Advocate Milan Shrestha, reviews all prevalent laws relating to corruption and good governance and identifies existing gaps in relation to UNCAC. The convention assigns state parties to formulate and implement national laws to meet its requirements and encompasses provisions on preventive measures, criminalization and law enforcement and international cooperation. The major findings of the research are as follows:

There are many challenges to implement the provisions of UNCAC. Raising awareness, information exchange between state parties, policy formulation, legal reform, expertise, coordination are some of the immediate challenges.

The Prevention of the Corruption Act, 2002, Money Laundering Preventive Act, 2008 and Public Procurement Act, 2007 have covered many provisions of the Convention. However, bribery of foreign public officials, officials of international organizations and corruption in private sectors are not addressed in Nepalese laws. Similarly, issues like control embezzlement, misappropriation, diversion of property, trading in influence, abuse of functions, illicit enrichment and embezzlement are also not addressed adequately. No effective law exists to protect witnesses, experts, informants and victims. No policy has been formulated to manage cooperation among law enforcement authorities. There are no clear provisions on transfer of sentenced persons and criminal proceedings, and mutual legal assistance between countries.

The recommendation to State party to form Financial Intelligence Unit has not been fully met with the 'Financial Information Unit' working only as information clearinghouse.

To bridge the gaps that exist between Nepalese laws and UNCAC, the study recommends:

New laws relating to anti-corruption for both private and public sector- protection of witness, informants, victims and experts; Mutual Legal Assistance; civil, criminal and administrative accountability of legal persons; assets recovery; political party accountability (financial matter as well as election); bribery of foreign public officials and officials of public international organizations; joint investigation and implementing the verdict and order issued by foreign courts and authorities

Existing laws related to anti corruption be amended - Prevention of Corruption Act, Extradition Act, Laws related to financial institutions, insurance, company (private and public), laws related to financial governance and procedures, laws related to local bodies, laws related to election, facilities of government officials and personnel

A relatively high punishment and sanction including relatively long jail sentence and confiscation of assets and properties

Criminalize bribery of foreign public officials and officials of public international organizations and bribery in the private sector

Reconcile government's efforts through National Integrity Strategy and some promotional activities implemented nationwide as public campaign

National Vigilance Centre (NVC) to create awareness against corruption and activities related to preventive side of corruption. Likewise, Judicial Council, Office of Attorney General, Special Court should also be active

Code of conduct for civil servant, elected and appointed persons be made and implemented

Enhance capacity of the authorities who are working in the field of anti-corruption with clear plan and policy

Financial Information Unit be substituted by Financial Intelligence Unit with concrete powers and resources

5.1.1.4 Review of Government of Nepal Anti corruption strategy and action plan

The report is based on a desk study, carried out by Consultant Mahendra Sapkota, on Anti-corruption Strategy and Work Plan, and the Sectoral Work Plan of the Government of Nepal.

The findings of the study are as follows:


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Effects of political instability, lawlessness, nepotism and lack of accountability prevail at large

Formulation of policies, plans and programs exist but lacks implementation

Some of the activities of the Strategy are partially relevant, most of them have been found moribund

The Strategy and Work Plan, is short of relevancy, lacks effectiveness and efficiency and far from generating any impact

Implementation of important provisions of the Strategy and Work Plans are restricted due to absence of proper laws

The GoN has ratified UNCAC but necessary laws in line with it are yet to come

The Work plans list regular activities of the agencies which have no relation with anti corruption work

There are certain provisions listed below, which are yet to be put into action:

– Execution of effective public awareness program including moral education against corruption

– Reforming management of the public corporations and making them transparent and competitive

– Effective financial intelligence unit

– Periodic assessment of the effectiveness of legal provisions and administrative mechanisms against corruption

– Effective auditing and accounting provisions

– Activities of the local authorities to be made public , participatory, transparent and responsible

– Effective reform of banking and financial sector

– Maintaining clarity between the jurisdiction of the political and administrative leadership

– Maintaining integrity in the professional and corporate sector

Study recommends:

The Strategy and Work Plan be revised with the active participation of all concerned agencies and sectors including CIAA, NVC, the judiciary, political sector, civil society, NGOs and private sector to make it holistic. OPMCM should take initiative for such a work plan

The laws compatible with UNCAC should be drafted as soon as possible and required system put in place so that all components of corruption and crime are addressed and made punishable by the law

The laws proposed by the main anti-corruption agencies should be formulated. Special laws be formulated and come into force regarding disclosure of financial status of the political parties, NGOs and INGOs

Posts of Chief Commissioner and Commissioners in the CIAA be filled immediately to complement implementation of the strategy and action plan

The NVC should be well-equipped with required financial resources and other facilities

The officials responsible to implement the Strategy and Work Plan be made accountable for failing to do so in a timely manner

A joint monitoring and follow up mechanism led by OPMCM with representation of civil society organizations be formed; and this mechanism regularly monitor implementation. The results of monitoring should be made public through print and electronic media

The research findings of the above mentioned 4 researches have been reviewed by TIN Executive Committee, advisory members for immediate advocacy and also being made print-ready.

Continuing its research work, TIN made public calls in the national dailies and TIN website soliciting EOIs to conduct 5 researches during 2012. After a careful evaluation of the EoIs, agreements were entered with shortlisted Researcher/Organization to initiate the following studies.

5.1.1.5 Umbrella and sectoral code of conduct

The study was initiated with consultant Mahendra Raj Sapkota as the lead researcher on 15th June 2012. The purpose of the study is to addresses lack of a clear code of conduct that guides functioning of the government, parliament, political parties, judiciary, constitutional bodies, civil society, media and the


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private sector. The study aims to develop an Umbrella and several sectoral codes of conduct with a detailed outline of appropriate and transparent behavior as well as inappropriate or corrupt behavior. The proposed codes shall be taken up for discussions with relevant authorities for adoption and monitoring.

5.1.1.6 Management of Funds by Local Development Bodies

The study commenced on 20th June 2012 engaging Institute of Local Government Studies (InLoGoS) with Bansidhar Ghimire as the lead researcher. The purpose of this study is to build knowledge around mechanisms of use of funds by local government bodies and their accountability. The study will examine the current situation of fund management at selected DDC, Municipality and VDC and present a general trend. TIN will use the study to assess and recommend policies to ensure efficacy of the funds.

5.1.1.7 Anti-corruption & oversight agencies and relevant laws

The study was started on 1st July 2012 with a team headed by former Secretary Madhav Prasad Ghimire. The study will map key government bodies relating to anti-corruption namely CIAA, Auditor General, Special Court, Judicial Council, and National Vigilance Centre etc and provide details of their interaction with reference to relevant laws. TIN will utilize this research to make specific recommendations to improve organizational and legal framework.

5.1.1.8 Foreign Aid Policy from anti-corruption perspective

The study was initiated on 20th June 2012 through Oddity Consultant Pvt. Ltd with Dr. Hem Prabha Pandey as the lead researcher. The purpose of the study is to conduct a thorough review of the current policies and practices related to foreign aid delivery. TIN aims to recommend for a transparent and effective utilization of foreign aid viz a viz the foreign aid policy of Nepal through the study.

5.1.1.9 Project cost

The study was initiated on 20th June 2012 engaging Scott Wilson Nepal Pvt with Kamal Raj Pandey as a lead researcher. It will focus on scrutinizing governance and related practices associated with cost, quality and time of representative government projects. Comparative analysis with projects of different countries will also be made to examine causal factors. The findings will be utilized to promote better understanding of these issues.

5.1.2 Network And Campaign

In addition to conducting research on contemporary issues the other approach adopted by the IA program is network and campaigns. Towards this, the following events were organized involving like-minded NGOs, private sector and individuals:

5.1.2.1 Mass meeting for solidarity

On the occasion of the International Anti Corruption Day (December 9, 2011), TIN organized a mass meeting at Shanti Batika, Ratnapark. The event was held with the view of creating awareness and strengthening the fight against corruption. Prior to the event, a preparation meeting was organized with stakeholders (PABSON, Teachers Association, Fair Trade Group Nepal, AJAR Nepal, FNCCI, Nepal Cottage and Small Industries, NGO Federation of Nepal).

The importance of integrity was highlighted at the event among civil society partners and common people. The speakers including former President Daman Nath Dhungana pointed out the need for strong laws and action by the government towards controlling corruption. In the event an appeal was delivered by TIN President demanding the government responds to the prevailing inadequacies in good governance.

The major issues raised in the TIN appeal were:

Political parties and government must be sensitive towards continuous degradation of national integrity and rise of corruption

All types of corruption, policy level, private or public should be within the jurisdiction of constitutionally delegated institution

Introduction of ethical values and moral studies in the academic syllabus from primary to higher level education

Government to take initiatives towards controlling impunity with a firm determination

Government to monitor and control revenue leakage with special attention

Foreign aid policy to be revisited to ensure transparency in foreign aid


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Strictly adhere to the recommendations laid down by Auditor General’s Office including clearance of billions of rupees in outstanding and misappropriation

Political Parties Act, 2058 be revised as per the present context

Bureaucracy be motivated to fight corruption adhering to norms and values of rule of law

During the occasion a leaflet message targeting the students was also disseminated explaining corruption, its effects and the need to remain vigilant.

5.1.2.2 Classification of information

A meeting was organized by TIN on 5th February 2012 to discuss the government decision to keep 140 types of information classified. Discussion with stakeholders from Freedom Form, NGO Federation of Nepal, media and other civil society stakeholders focused on a position against the Government decision. Unanimously agreeing that the decision was a blow to the people’s right to information, a press release was issued asking the government to withdraw its decisions. Later, government withdrew its decision.

5.1.2.3 Dialogue on UNCAC

A discussion was organized jointly with the NGO Federation of Nepal on 15th February 2012 at NFN Resource Center. The objective of the program was to sensitize the government, parliamentarians, political parties and anti-graft bodies for effective implementation of UNCAC in Nepal. The program was chaired by TIN President where findings of TIN research on UNCAC were shared by Research Associate Advocate Rukamanee Maharjan.

5.1.2.4 District outreach

TIN VP Ananda Raj Mulmi and Program Coordinator Tumburu Gautam participated in workshops organized at Dhading, Sunsari and Chitwan districts. The workshops were organized with logistical support of TIN affiliated organization- Sankalpa CBR Nepal in Sunsari, Bhrastachar Biruddhako Abhiyan in Chitwan and Paradarsi Nepal Siddarthanagar in Bhairava. Amidst the gatherings, suggestions were gathered and expectations matched with 14 affiliated organizations for joint initiatives at the local level.

5.1.2.5 International Conference to build support on anti-corruption

A multi stakeholder conference is being planned for December 2012 to engage key state actors on approaches towards corruption challenges in Nepal. International experts from TI Secretariat, TI National Chapters, anti-corruption sector and donor community will be invited to provide their viewpoint. National and international experts would be asked to present their experiences to enhance national effort. Experiences in garnering political will, implementation of a national strategy and compliance of UNCAC provisions will be some of the issues that will have significance for Nepal. TIN will utilize the findings of it studies, undertaken in 2011 and 2012, as a reference to guide the agenda of the conference.

5.1.2.6 Collaboration with TIN’s district partners

Seed fund of Rs. 0.1 million each were allocated to 9 affiliated organizations to reach out to local population through radio, newspapers and hoarding boards to report corruption and service delivery problems. Based on the needs and problems identified by the populations, TIN and its partners will approach local bodies to encourage issuing public declarations.

5.2 Parliament Watch (PW) study

TIN continued its study titled Parliament Watch with the support of South Asian for Human Rights (SAHR) to enhance better understanding of the region’s legislature on levels of transparency and accountability. This was the first South Asian initiative to measure parliamentary practices in selected regional democracies. Advocate Kamal Pokhrel (Program Coordinator, ALAC Nepal) continued the research in 2011/12.

The study consisted of 2 aspects: the first dealt with the assessment of parliamentary transparency and accountability while the second involved its role in legislative issues that reflected human rights concerns. The research reports were prepared covering periods between 2010 and 2012, and uploaded in the SAHR website.

The year 2011-12 witnessed the proceedings of two different sessions of the Nepalese parliament, the 9th and 10th. 32 meetings were convened in 38 days 46 hours and 05 minutes to carry out actual business in the 9th session. The 10th session witnessed 99 meetings being convened in 88 days 183 hours and 40 minutes for actual business.


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The Constituent Assembly (Conduct of Business of Legislature-Parliament) Rules 2008, provisions the conduct of the entire business of the house. In order to make parliament's function effective, transparent and accountable, an Operation and Management Committee was formed. Seven thematic committees and two special committees were also constituted. Despite such extensive legal framework, as many as 17 successive rounds of elections failed to elect a new PM suggesting failure in institutionalizing parliamentary democracy in Nepal. The Nepalese parliament, however, showed sensitivity towards the governance agenda as it ratified the United Nation's Convention against Corruption (UNCAC) in 24 February 2011.

Some important Bills were presented in the 9th session from the perspective of protection and promotion of human rights. The National Dalit Rights Commission Bill 2010, inter alia, is particularly important because it aimed at respecting and promoting the rights of the Dalit community through establishing a high-level Commission for that matter. The 10th session passed the Ethnic Disparity and Untouchability (Crime and Punishment) Act, 2011 and the National Human Rights Commission Act (NHRC), 2012. The basic purpose of the Ethnic Disparity and Untouchability (Crime and Punishment) Act, 2011 is to respect, protect and promote right to equality and dignified life by abolishing all types of untouchability, restriction and exclusion. The National Human Rights Commission Act (NHRC) is a comprehensive legislation that ensures respect, protection and promotion of human rights and effective implementation thereto.

These significant achievements notwithstanding, the 10th session of the Legislature-Parliament had to face a lot of obstructions from the opposition parties. Almost no months passed in 2011-12 without the house sessions being obstructed. Various issues ranging from making public service inclusive to national dress code attributed to the disruption. For the first time in Nepal's Parliamentary history, lawmakers were expelled and hauled out from the parliament for repeatedly obstructing the parliamentary proceedings. Interestingly, these types of expulsions, however, were only applicable to the smaller parties.

Apart from the foregoing developments, the Legislature-Parliament of Nepal, vide its various thematic Committees, remained active throughout the year 2011-12. The Public Accounts Committee (PAC) and the Committee for International Relation and Human Rights (CIRHR) remained busy in functional and policy matters. The PAC was active to issue directives or refer matters to the different authorities of the Government of Nepal whenever it took notice of the issues relating to corruption and governance. The CIRHR, on the other hand, recommended a number of policy issues of international relations as it published a comprehensive report on "Nepal's Foreign Policy in the Changed Context, 2011". The focus of the CIRHR in the year 2011-12 was, thus, on the foreign policy rather than issues which had direct bearing on human rights.

Nepal's parliament, thus, witnessed many ups and downs as politics remained shaky in the absence of national consensus.

5.3 Advocacy and Legal Advice Centre (ALAC) Nepal

TIN's Advocacy and Legal Advice Centre Nepal, launched in November 2008, continues to provide free and informed legal advice to witnesses and victims of corruption. It plays a critical role in identifying corruption hotspots. It provides an avenue for people, from every nook and corner of the country, to file complaints via telephone (toll free) and other means of communication, including email. The ALAC approach is funded by TI through DFID support in more than 60 countries. ALAC Nepal has secured funding till 2014 from TI.

ALAC-Nepal has received over 2500 contacts since its inception. Most contacts (calls) bore corruptive element, some were general inquiry, others needed administrative and legal counseling, and a few beyond the ALAC mandate. There was a direct engagement in approximately 750 cases, whereas about 350 cases were closed successfully. Youths (ranging 25-39 years of age) were the most eager group to report corruption or irregularities. The next to follow were the middle-aged (ranging 40-54 years of age) persons.

During 2011/12 (April-March) a total of 570 contacts (call) were received by ALAC Nepal. out of them, 54% were from the rural areas, whereas urban and semi-urban callers constitute 25 % and 18% respectively. ALAC-Nepal, thus, was able to generate catalytic effects in reducing dissatisfaction of rural populace. So far as complaining pattern is concerned, this year the education sector witnessed 12% complaints whereas matters relating to property rights amounted to 6%. Next to follow were Police and the Tax/Finances which had equal figure (4%). There is a consistency in reporting so far as the public grievances are concerned.


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ALAC-Nepal has received a lot of public acknowledgements and appreciation from the satisfied clients. It has been able to solve many cases even without reporting to the oversight agencies as potential wrongdoing was simply averted after ALAC inquiry. Similarly, simple follow-up sometimes created sensation in government utilities due to credibility attached to TIN name. Quite a few cases intervened by ALAC have brought changes in policy as well as in practice. To mention a couple of them are the "Fake Delivery Case" and "Nepotism in Appointments". The fake delivery case relates to misappropriation of safe motherhood allowances by preparing a fake roster of delivering mothers; whereas latter is all about the unscrupulous practice of appointing relatives or favored person in schools under the Rahat (the subsidy) quota. In the former, the client, a whistleblower, was empowered enough to bring the issue into national attention by exposing the matter in media while the latter involved follow-up of the issue with the school concerned which finally initiated the formal process of recruitment. This is how the two-fold objective of empowering clients to claim their rights, and working against irregularities and corruption is fulfilled.

These positive indicators notwithstanding, some challenges also do exist. Despite efforts, ALAC-Nepal was not able to catch the much support of urban populace so far as corruption-reporting is concerned. Besides, its intervention is partly affected because organizations like CIAA and Auditor General are not in a position to deliver the fullest in the absence of leadership. Ironically, there is a lack of political will to address this issue. Neither Nepali governance is free from political influence, nor have existing laws and policies in the area of corruption vis-à-vis good governance been fully implemented.

5.4 South-South Asia Exchange (SSE) Program

The South South Exchange Program was initiated in 2009 to promote mutual learning and sharing of expertise through exchange of fellows between six South Asian National Chapters of TI (Nepal, India, Bangladesh, Pakistan, Sri Lanka and Maldives). The exchange continued for the fourth successive year in 2012 with TIN as the lead partner for South Asia. The exchange program, funded by Fredskorpset-Norway, is of USD $ 144009.00 for the fourth year.

The duration of the exchange is 12 months with 15 days Preparatory Course in Bangkok, 10 months stay in host country and 1 month follow up activity in home country. The long-term objective of each of the partner chapters in the exchange are as follows:

TI Bangladesh Integrity Pact (IP), Right to Information (RTI), Social Audit, investigative journalism, campaign

TI India Fundraising, communications, advocacy, creating public demand, legal advice

T Maldives Institutional development, grass roots advocacy, research, political finance, RTI

TI Nepal Proposal writing, fund raising, research on governance, strategic planning, public procurement

TI Sri Lanka Research, integrity pacts, blog, RTI, IP, Social Audit, social accountability of partner organisations

TI Pakistan Outreach, partnerships, advocacy, investigative journalism award, research, advocacy

In 2011, phase III, 6 'Exchange Fellows' completed the exchange involving 5 TI chapters in South Asia. Fellow from TI Nepal (TIN) was posted in TI India (TII), TI Maldives (TM) in TI Sri Lanka (TISL) and TISL in TI Bangladesh (TIB). Similarly fellows from TIB were posted in TIN and TM. Binod Bhattarai, the TIN exchange fellow for phase III, returned from TII, after completing a 10 month stay. He was drawn in TII’s Development Pact and Integrity Pact programs. Upon arrival, he shared his experiences with the EC and Secretariat and presented a feasibility report to implement lessons learnt in India. The report is currently being studied. Similarly Md. Shahnur Rahman successfully completed his research fellowship at TIN and returned back to TIB.

For the fourth Phase starting July 2012, 5 fellows have been exchanged within TI chapters in South Asia. TIN sent Shristi Karki to learn TII’s experience of implementing Corporate Governance, Pahal and Development Pact programs. Awinash Kumar Mishra arrived from TII to support Governance and Development Pact programs at TIN. Similarly, 2 TIB fellows have been exchanged with TISL and TM and a TISL fellow is based at


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TII. The focus of exchange in 2012 is research, accountability, corporate governance, advocacy and communications.

The Exchange Program has enabled free flow of communication an exchange of experiences. There has been significant capacity enhancement through the participants who have indicated a gratifying cultural and multi-national learning, providing a solid ground for the strengthening of the TI South Asia sub-region. The program is a tremendous opportunity to apply the best practices among the TI Chapters. With additional working hand, chapters are also benefitting with ideas, third eye views, and expertise to enrich their activities. This program has been widely recognized as a leading example of horizontal networking and learning in the TI movement.

6. NEW PROGRAMS

6.1 Advocacy and Legal Advice Center (ALAC) and Development Pact (DP)

In order to tackle the problems identified by citizens in an innovative way, TIN applied Development Pact (the proven TI tool for accountability) with the Advocacy and Legal Advice Center approach, aiming to multiply impact through increased citizen demand for greater accountability. This 3.5 years program is being supported by the European Union office in Kathmandu with euro 405,000.

The overall objective of the program is to improve access particularly of disadvantaged and vulnerable groups towards public goods and services. This will be accomplished by making local authorities more responsive to the need and demands of the local population.

The key activities of the program are:

Maintaining and strengthening TIN’s complaints and free advice services ALAC at Kathmandu and target districts

Launching a media campaign to collect public grievances related to corruption at local level districts

Strengthening of TIN and district Local NGOs by seeking cooperation with other CSOs and establishing a learning framework for implementing the DPs

Identifying and selecting key stakeholders, including through reference to ALAC records and against agreed commitment to ensure genuine political and administrative accountability

Establishing public dialogues, identifying benefits and finalizing the content of DPs

Publicizing benchmarks for improved service delivery and inclusive policy processes through workshops, advocacy and tracking of the performance on the DPs commitments

Ongoing monitoring, advice and support to citizens

The expected results are:

Strengthened capacity of TIN district based Local NGOs

Increased participation of citizens in planning, processing and delivery of effective services at local and national level provided primarily through the DPs

Tangible benefits for disadvantaged groups, Local NGOs, CSOs, local authorities and public representatives

Empowerment of citizens to make and pursue corruption complaints and systemic improvements

Increased citizen demand for transparency and integrity and action against corruption at local and national level

The target areas of the program include Illam, Sunsari, Morang, Udaipur, Sindhuli, Dhanusa, Rautahat, Parsa, Chitwan, Dhading, Kathmandu, Gulmi, Gorkha, Rupendehi, Kaski, Gulmi, Magdi, Surkhet and Kailali. The expected outputs of this program are the creation of 16-20 DPs between local NGOs and local authorities with time-bound deliverables.

6.2 Governance and Accountability (Strategic Planning)

Taking into consideration the changes in the political, economic and social spheres, TIN is gearing to frame a new Strategic Plan for 2012-2016. This strategic plan will shape the future of TIN and will guide the organization through overarching vision, mission, and goals. The planning process is being supported by TI Secretariat with euro 6,000. Consultant Basanta Lamsal is engaged as the consultant to draft the strategic plan. The plan is currently being drafted in consultation with members, staff and stakeholders through various FGDs and workshops.


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During planning process, two workshops were held in Dhulikhel (19-20 April) and Godavari (6-7 July 2012). The primarily fields of engagement have been identified during discussions. TIN plan is built on the premise that corruption can be reduced by intervening in identified domains through a counter force that demands integrity.

6.3 National Integrity Context and Systems Analysis (NICSA)

TIN has recently entered into an agreement of euro 39,690 with TI secretariat to conduct a two-year National Integrity Context and Systems Analysis (NICSA) in Nepal as part of a South Asian study. NICSA adopts a research and advocacy approach to build demand for effective systems of governance and leadership. It is based on the NIS methodology which TIN used in 2011 to conduct a national study. The research balances an in-depth analysis of NIS pillars with a strong focus on political economy and political agents. It seeks to illustrate examples of political will and effective leadership, which could be targeted towards institutional reforms, and generation of political will.

Once the NICSA study is completed, TIN will focus on priority issues identified for advocacy.

7. SEMINARS AND WORKSHOPS TIN also facilitates events and interactions to support the discourse against corruption.

7.1 Ethical values

On 19th August 2012, during the 17th anniversary of TIN, a talk- program was organized to highlight importance of ethics and morality in controlling corruption. Former Vice President Aditya Man Shrestha and Bipasana teacher Uttam Ratna Dhakwa were the key speakers who stressed that the value system and religious beliefs had been neglected in the name of modernization resulting in the present chaos.

7.2 Corruption Barometer and Index

On 22nd December 2011, an addendum to the 'Global Corruption Barometer - Daily lives and Corruption, Public Opinion in South Asia' was launched in Kathmandu with the Transparency International Secretariat. Representatives from TI - India, Bangladesh, Pakistan, Sri Lanka and Maldives were present during the launch. The report highlighted peoples' perception of increasing corruption in Nepal with political parties as most corrupt institutions, revenue as most corrupt sector and governments initiatives as ineffective. The event was high-profiled by members from civil society, national and international institution and news media.

A media interaction was held on 1st December 2011 to launch the Corruption Perception Index (CPI) 2011 which listed Nepal with a score of 2.2 out of a possible 10. Countries scoring below 3 are categorized as ones with pervasive corruption. The score reiterated public perception about corruption in Nepal and matched other survey results. Following the launch, PM invited a group of people engaged in the anti-corruption sector, including TIN President, to discuss problems and possible solutions.

7.3 NGO Outreach

On 3rd February 2012, President Bishu Bahadur K.C. attended a program organized by Paradarsi Nepal Siddharthanagar, a TIN affiliate, as its chief guest.

Two seminars were held with TIN affiliated organizations, one in Kathmandu and other in Hetuda, on 3rd September and 31st August 2012. TIN President, Board members Bharat B Thapa and Padmini Pradhananga along with project staff participated at the events. Matter related to promoting active engagement of the organizations at the district level was the main agenda of the seminars. The events proposed to build solidarity and a common work modality in joint programs to be carried out at the district level. These meetings were a follow up to an orientation provided to affiliated organizations in Chitwan from December 15-16, 2012.

Vice President Ananda Raj Mulmi and Program Coordinator Tumburu Gautam visited TIN affiliated organizations and reviewed progress during 30 April-4 May 2012. On 1-2 July 2012, member Krishna Prasad Bhandari visited Hetuda and Gaur to explore possibilities of new organizations. Program Officer Binod Bhattarai visited affiliated organizations in Siddarthnagar and Pokhara and during 19-21 July 2012 to share his learning from TI India.


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During the international anti corruption day, on 9 December 2011, a mass meeting was held with professional organizations and NGOs at Santi Batika, Ratna Park. During the day TIN President K.C. made a 5-point appeal for integrity and delivered the same message in a program organized by the CIAA.

TIN Secretariat staff participated in workshops, seminars and training organized by various stakeholders on issues of right to information, aid transparency, zero tolerance to corruption, transitional justice, UNCAC, etc.

8. INTERNATIONAL ENGAGEMENTS Besides being engaged at the national front, TIN is also engaged at the international arena to share experiences and good practices. Guided by the 'International meeting participation guideline, 2011' framed by the Executive Committee, TIN officials participated in a number of events:

8.1 TIB Outreach, Dhaka

During 2-7 August 2012, Program Coordinator Tumburu Gautam and Senior Media Officer Tham Nath Ghimire attended an exposure visit titled 'Peoples' Engagement' organized by TI Bangladesh. 13 TI chapters were invited to observe TIB's work on outreach, communication and networking. TIB is regarded as the largest chapter of TI in terms of human and financial resources. The lessons learnt during the visit are to be drawn on during the promotion of ALAC and DP program in Nepal.

8.2 Debriefing and homecoming, Bangkok

Executive member Padmini Pradhananga, Executive Director Ashish Thapa, Program Officer Anjana Bhattarai and Exchange fellows Binod Bhattarai and Shristi Karki participated in the Annual South South Asia exchange debriefing/ homecoming and prep course seminar held in Bangkok from 30 July to 2 August 2012. The objective of the meeting was to share gained experiences, conclude the 3rd phase and initiate the 4th phase of exchange.

8.3 NICSA training, Male

During 13-15th July 2012, Program Coordinator Tumburu Gautam and Lead Researcher Ram Krishna Regmee visited Male to attend training on National Integrity Context and System Analysis (NISCA) organized by TI Secretariat. TIN is to initiate a study during 2012 following the NICSA methodology.

8.4 Asia Pacific meeting, Seoul

Executive Director Ashish Thapa and Senior Media Officer Thamnath Ghimire participated in the TI Asia Pacific Regional Program Meeting held in Seoul from 14-16 May 2012. Key programmatic issues of the region and chapter success stories were the main agendas of deliberation. During the meeting, TIN representatives participated in executive leadership and media management training.

8.5 Review and Planning, Kathmandu

6 South Asian TI chapters participated in the South South Asia Exchange program review and planning meeting held during February 15- 18, in Kathmandu. The meeting reviewed progress of exchanges in 2011/12, identified thematic issues for learning during 2012/13 and finalized its modus operandi.

8.6 ALAC training, Baku

During January 23-28, 2012, TI conducted a ALAC training program in Baku, Azerbaijan, in which Program Coordinator Advocate Kamal Pokhrel participated. The meeting was a gathering of existing and new ALACs in South Asia to share TI Azerbaijan's experiences.

8.7 Media training, Kathmandu

During December 20-21, 2011, TI Secretariat organized training for communication officers of the 7 Asia Pacific TI national chapters in Kathmandu. Communication officers from Vietnam, Maldives, Sri Lanka, Bangladesh, Pakistan and Nepal participated in the training facilitated by TIs. TIN was represented by Program Coordinator Tumburu Gautam and Senior Media Officer Thamnath Ghimire.

8.8 Annual Meeting, Berlin

Treasurer Komal Chitracar represented TIN at the Annual Membership Meeting (AMM) of Transparency International held in Berlin during 12-16 October 2011. Election of TI Board of Directors and yearly reports were the main agenda of the AMM.


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These representations have helped TIN to network and gain recognition at the international level. Invaluable partnerships have also been made in the process.

9. INSTITUTIONAL MATTERS

9.1 AGM

The 16th Annual General Meeting of TIN was held on 30th September 2011, where 26 members out of a total of 50 were present. President Bishnu Bahadur K.C. chaired the meeting where Secretary General Shree Hari Aryal presented the Annual Progress Report and Treasurer Komal Chitracar presented the Audited Financial Report. Both the reports were approved unanimously by the AGM after discussions. Bhatta and Co. Chartered Accountants were appointed auditors for F/y 068/069.

At the 17th AGM, to be held on 5th October 2012, elections for TIN President and 8 other EC members are scheduled to be held. President Bishnu Bahdur K.C., elected by the 15th AGM in 2010 for a two-year term, will vacate his Presidency. EC members Ananda Raj Mulmi, Usha Nepal, Bharat Bahadur Thapa and Padmini Pradhananga, all elected at the 15th AGM; and co-opted members Sarachandra Wasti and Mahadev Yadav will also vacate their seats. TIN President and the EC members complete one term and are eligible to stand for a second term as EC member. EC member Shree Hari Aryal and Komal Chitracar re-elected at the 15th AGM, complete two-consecutive terms, the final for an EC member. Member Krishna Prasad Bhandari will act as the Election Commissioner during the 17th AGM.

9.2 Responsibilities of EC members

To execute various tasks, Executive Committee allocated specific responsibilities to its members. President Bishnu Bahadur K.C. was requested to guide the ‘Promoting Integrity and Accountability’ program in addition to guiding researchers on foreign aid policy and project cost. Vice President Ananda Raj Mulmi was entrusted to interact with TIN affiliated organizations and explore the possibilities of new affiliations.

Secretary General Shree Hari Aryal and Treasurer Komal Chitracar were requested to guide on-going researches on codes of conduct and local level fund management, respectively. Additionally, Treasurer Chitracar was assigned to coordinate an event on TIN's 17th establishment day.

EC Member Bharat Bahadur Thapa was given the responsibility to coordinate the ALAC & DP program, Integrity Award, strategic planning and research on mapping anti-corruption laws and agencies. EC Member Pradhananga was assigned to organize anti-corruption day activities and school level educational programs. Ms. Pradhananga has also been over sighting the South-South Asia Exchange program.

EC Member Sarachandra Wasti has been overseeing the content of TIN newsletters. EC Member Mahadev Yadav was requested to propose laws and policies to deter corruption.

9.3 Secretariat

A total of 11 staff, most contracted on annual basis, are engaged at the Secretariat with the Executive Director and 3 Program Coordinators responsible for operation and programs. During October 2011, TIN office was relocated to Anand Bhairav Marg, Gyaneshwor from New Plaza Putalisadak.

Program Coordinator Tumburu Gautam and Program Officer Binod Bhattarai were transferred to the newly launched ALAC and DP program. Mohan Budhathoki and Nisha Aryal were recruited to execute the IA Program as Program Coordinator and Program Officer respectively. Program Officer Anjana Bhattarai resigned to pursue further studies in the USA. Casual arrangements were made for office maintenance, data entry, editing and designing as per the need of the project.

The new office became fully operational after 15th October 2012. Thereafter, on account of different projects, Motorcycles (2 units), Laptops (5 units), Desktops (6 units), Photocopy cum Scanner (1 unit), Printers (9 units) and Power Inverter (1 unit) were purchased to streamline operations. Some of the equipments are to be allocated to partners. Still some constrains in operation and future sustainability like not having its own premises, vehicle and a larger endowment fund remain.

As a medium of information dissemination, 3 issues of TIN newsletter 'Paradarshi' were published and disseminated to members, affiliated organizations, stakeholders and government offices. It includes President's message as well as articles of members, journalists and staff on contemporary issues and activities of the organization. During the 62nd anniversary of Radio Nepal, TIN was awarded an appreciation certificate for being in a coalition and contributing in raising awareness through public messages.


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Representatives of Transparency International Secretariat, TI chapters in South Asia, TI UK, The World Bank, Asian Development Bank, Royal Norwegian Embassy, Fredskorpset Norway, Asia Pacific Governance Institute, Accountability Lab, KPMG, Development Initiatives and Griffith University paid a visit to the Secretariat to discuss issues of mutual interest.

9.4 New Agreements

Between the 16th and 17th AGM (2011-12 period), TIN entered into 5 new funding agreements with donors to initiate and extend projects. As per law, approvals from Social Welfare Council (SWC) have been obtained to execute these programs:

i. South South Asia Exchange 4th phase (Fredskorpset Norway funded, equivalent to Rs. 15 million for South Asia, 2.3 million for TIN).

ii. Advocacy and Legal Advice Center (ALAC), (TI-AusAid funded, equivalent to Rs. 5.6 million).

iii. Advocacy and Legal Advice Center and Development Pact (ALAC & DP) (EU funded, equivalent to Rs. 47.6 million),

iv. Governance and Accountability - Strategic Planning (TI funded, equivalent to Rs. 0.62 million).

v. National Integrity Context and System Analysis (NICSA) (TI funded, equivalent to Rs. 4.2 million) (SWC approval in pipe line).

TIN accreditation as the Nepali National Chapter of TI was renewed on 1st February 2012 for a three year period. A thorough self-evolution was a part of this exercise.

9.5 Finance

As per the suggestions of the 16th AGM, annual membership fee was decreased to Rs. 100 from Rs 1000. An endowment fund of Rs. 7.0 million exists to address institutional sustainability issues and is being topped-off annually. During 2011/12, an amount of 1.0 million has been transferred to the endowment fund out of savings from project overheads. A request, made to the Government of Nepal to provide Rs. 3.0 million as operational grant, is yet to materialize.

9.6 Award

Nominations were invited publically for TIN Integrity Award for 2012, initiated last year to honor contribution of individual or institution towards controlling corruption or promoting integrity. The award was withheld in 2011 due to insufficient number of recommendations.

9.7 Affiliated Organizations

Guided by the 'TIN Guidelines for Affiliated Organization, 2068', TIN is currently working with 16 Affiliated Organizations in districts -Illam, Sunsari, Morang, Udaypur, Sindhuli, Dhanusa, Parsa, Chitwan, Dhading, Kathmandu, Rupendehi (2), Kaski, Gulmi, Surkhet and Dhangadi. Out of these, the following two were granted institutional affiliation on 27th February 2012:

1. Human Rights and Environmental Development Center, Udaypur 2. Susasan Abhiyan, Gulmi

To support anti corruption activities at the local level, MoUs were entered with the affiliated organizations under ALAC and IA programs. They were aimed at soliciting support of these organizations in raising awareness and addressing public grievances at the local level. In addition, a 19-point work policy was prepared and circulated.

Affiliated Organizations are involved in some common programs to increase public awareness on corruption at the district level that suit local needs:

Grievance redressal: Affiliated organizations act as outreach centers representing TIN interests at the district level. They help in disseminating TIN hotline number to the public and in resolving district- based complaints.

Radio and newspaper: Organizations disseminate messages through FM radios and local newspapers to contact TIN and them in cases of problem related to service delivery.

News Newsletters: are published and distributed by a number of organizations. Newsletters carry opinion, local news, reform initiatives and activities.


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Hoarding Boards: Large flex boards with messages to report corruption are displayed in major city centers and nearby government offices.

Interactions: Discussion programs are organized on topical and contemporary issues with service providers and civil society members.

Anti-Corruption Day: On December 9, a number of affiliated organizations organize dramas and essay competitions. Editorials and articles in the print media are also published.

9.8 Meetings

In between the 16th and 17th AGM, the Executive Committee met 8 times and the Management Sub Committee 4 times to discuss and give direction on policy programmatic issues.

10. FUTURE STRATEGIC PLAN 2012-16 TIN Executive committee, Members and Secretariat staff participated in planning workshops to prepare a Strategic plan for TIN. The plan was sketched after a careful analysis of organizational strengths, weaknesses, opportunities and threats. In the process, existing political, economical, social and technological environment were mapped and risks evaluated.

The following are the brief highlights of the strategic plan which is in the process of being developed and prioritized:

Vision: Corruption free Nepal

Mission: Initiate, pursue and promote anti corruption movement

Core Values: Transparency • Accountability Integrity • Justice Courage • Solidarity Democracy • Honor and Dignity

Goals Build a transparent and accountable society • Enhance integrity and ethical standards Redeem people from deprivation • Uphold national honor and dignity Build a Credible and resourceful TI Nepal

Objectives Create awareness • Promote values Engage in advocacy • Build partnerships, networks and coalitions Discourage abuse of power and authority • Increase knowledge base Strengthen institutional capacity

Resource Mobilization Government grant • Project Overhead savings Donor support • Specific projects Corporate/ Private sector/CSR • Revenue sharing Strategic alliances

Strategic Direction 2012-16

i. Advocacy and Interventions Transparency in Political party funding Legislative policy and legal reforms Aid transparency/ Budget tracking Executive Accountability Judicial accountability Legislature accountability Public litigation – policy issues

ii. Coalitions Constitutional and governmental anti corruption agencies Civil society organizations and media International organizations


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iii. Sectoral focus Public Procurement Public service delivery Security, education, health, revenue, tax, land revenue and natural resources Research, information dissemination and publication Social audit

iv. Internal Governance and management Review, revisit and update TIN constitution and policies Restructure organizational structures and work procedures Diversification of membership/inclusion of youth Thematic sub committees of members Strengthening TIN Secretariat-defining roles

v. Promoting Values Concept and Strategy for promotion of values Integrating anti corruption values in formal education Promoting enforcement of Code of conducts

All the on-going programs of TIN - ALAC, IA, ALAC& DP, SSE and NICSA- have been taken into consideration during the planning process and aligned with future strategic directions.

In the process of framing the strategic plan, TIN is revisiting its constitution to make it compatible to the present context. With contextual and institutional experiences of over a decade, necessary changes will be geared towards activism, dynamism, results and people's engagement.

11. CONCLUSION Today, four months after the Constituent Assembly (CA) failed to deliver a constitution, concrete steps towards building a new constitution have not yet been initiated. Differing views exits on how a new CA/Parliament can come into its existence. The options of a fresh election or the revival of CA are both being debated by political parties. Once parliament ceased to exist, the status of the present government has turned into that of a 'care-taker' one. In the absence of a full-fledged budget for fiscal year 2012/13, developmental activities as well as public service delivery has been affected. Non-budgetary expenses have started to increase. A constitutional deadlock in filling the long-vacant positions of Judges of the Supreme Court, Chief Commissioner and Commissioners of CIAA, Auditor General, and chief and members of Constitutional Bodies looms large. Local level elections have not been held for 15 years now and it is still not a unanimous choice of the major political parties. In the absence of elected accountable representatives funds have been rampantly misused at the local level. The country being ruled through ordinances should not be made a common tendency in democratic society but the same has now become a stark reality. Unfortunately, concrete steps for a 'national consensus' on a new constitution have not yet materialized. The continuous self-righteous gloating of the political parties is obstructing a political way out.

Fighting against corruption in an emerging democracy is not an easy task as the susceptible political climate makes it difficult to define concrete outcomes. As a pressure group TIN has its own limitations. It can only be effective if the state engages full heartedly in public benefits and provides due attention to problems brought to its attention. A difficult situation notwithstanding, Transparency International Nepal (TIN) looks forward to pursue its endeavors on governance and anti corruption by focusing on activities that stem out of its five year Strategic Plan 2012-2016. Awareness raising and empowering people, and pressing the state for necessary reforms will be the core values of TIN in all its endeavors. At this critical juncture, TIN feels an immediate need of a general consensus at the political and societal level, one that starts and sustains an environment for actors to effectively engage in combating corruption and systemic reforms.

TRANSPARENCY INTERNATIONAL NEPAL

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