The government has poured Rs 8.96 billion into the Melamchi Water Supply Project over the last 15 years, and it is nowhere near finished.
More interestingly, Rs 3.04 billion out of these billions was paid only to the project’s consultants. In other words, 34 percent of the total outlay as of the last fiscal year 2012-13 has gone to advisors and experts.
This is one of the revelations contained in the 51st Annual Report of the Office of the Auditor General (OAG) which was made public on Friday. According to the report, four out of the seven consulting firms are still involved in the project. They have been assigned different tasks including tunnel excavation, water treatment plant design and supervision and social upliftment.
The government suffered cost overruns since the contractors didn’t keep to their schedule and it was forced to keep the consultants engaged, said the report. The contract for the water treatment plan and tunnel excavation was awarded through a re-tender, resulting in the tenure of the consultants being extended and massive extra costs.
“The expenditure for consultants in Melamchi is the highest among projects in which consultants have been involved,” said Auditor General Bhanu Prasad Acharya at a press meet here on Friday.
According to the report, most of the donor-funded projects have spent 4.40 percent to 24.50 percent on consultants. “Consultants have been hired even for projects in which Nepali staff could be mobilised,” read the report.
The report has also questioned tax exemption given by the government to industries and for various other purposes. According to the report, the government exempted taxes worth Rs 31.44 billion in the last fiscal year alone for institutions, goods, services, ghee, oil, mobile and exports.
Remaining
More interestingly, Rs 3.04 billion out of these billions was paid only to the project’s consultants. In other words, 34 percent of the total outlay as of the last fiscal year 2012-13 has gone to advisors and experts.
This is one of the revelations contained in the 51st Annual Report of the Office of the Auditor General (OAG) which was made public on Friday. According to the report, four out of the seven consulting firms are still involved in the project. They have been assigned different tasks including tunnel excavation, water treatment plant design and supervision and social upliftment.
The government suffered cost overruns since the contractors didn’t keep to their schedule and it was forced to keep the consultants engaged, said the report. The contract for the water treatment plan and tunnel excavation was awarded through a re-tender, resulting in the tenure of the consultants being extended and massive extra costs.
“The expenditure for consultants in Melamchi is the highest among projects in which consultants have been involved,” said Auditor General Bhanu Prasad Acharya at a press meet here on Friday.
According to the report, most of the donor-funded projects have spent 4.40 percent to 24.50 percent on consultants. “Consultants have been hired even for projects in which Nepali staff could be mobilised,” read the report.
The report has also questioned tax exemption given by the government to industries and for various other purposes. According to the report, the government exempted taxes worth Rs 31.44 billion in the last fiscal year alone for institutions, goods, services, ghee, oil, mobile and exports.
Remaining
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