The Nepal Tourism Board (NTB), which has been entrusted with the task of promoting the country’s tourism in the national and international arenas, has been found to be misusing resources by amending its Financial Bylaws.
A copy of the amended Financial Bylaws 2013 obtained by the Post shows that it has authorized the NTB’s chief to spend Rs 10 million at a time for tourism promotion inside the country. This means that the chief executive officer (CEO) can spend this much money through a sealed quotation process.
The NTB boss can spend US$ 400,000 at a time outside the country without following any due process of the Public Procurement Act (PPA). Likewise, the CEO has been given the power to spend US$ 400,000 at a time through its honorary representatives and firms.
Although the PPA 2007 says that any authority, corporation, academy, board, centre or council established at the public level or formed by the government is required to invite open bids for procurement of goods and services with a value of above Rs 1 million, the NTB is out of bounds to this law.
As per the new rules, the NTB can procure goods and services worth up to Rs 2.5 million through a quotation. The board can purchase goods and services including its promotional materials through a single supplier directly through a written proposal.
As per the PPA, procurement should not be done in a piecemeal manner so as to limit competition. However, in a violation of the rules, the NTB can make piecemeal purchases under the new bylaws. In other words, it can buy goods in small amounts under the same procurement deal. The rules have also given powers to the head of the NTB to appoint an internal auditor to audit the board’s accounts.
According to Dhurba Narayan Shrestha, an NTB board member, the decision to amend the bylaws was taken by the board as inviting tenders for promotional activities on international news channel was too difficult under the existing process or through the PPA.
“Giving power to the CEO to use funds doesn’t mean that he or she will misuse it because the planned spending has to be approved by the board first,” he said. “Besides, there are a number of anti-graft bodies which will be keeping a close watch for misuse of funds.”
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A copy of the amended Financial Bylaws 2013 obtained by the Post shows that it has authorized the NTB’s chief to spend Rs 10 million at a time for tourism promotion inside the country. This means that the chief executive officer (CEO) can spend this much money through a sealed quotation process.
The NTB boss can spend US$ 400,000 at a time outside the country without following any due process of the Public Procurement Act (PPA). Likewise, the CEO has been given the power to spend US$ 400,000 at a time through its honorary representatives and firms.
Although the PPA 2007 says that any authority, corporation, academy, board, centre or council established at the public level or formed by the government is required to invite open bids for procurement of goods and services with a value of above Rs 1 million, the NTB is out of bounds to this law.
As per the new rules, the NTB can procure goods and services worth up to Rs 2.5 million through a quotation. The board can purchase goods and services including its promotional materials through a single supplier directly through a written proposal.
As per the PPA, procurement should not be done in a piecemeal manner so as to limit competition. However, in a violation of the rules, the NTB can make piecemeal purchases under the new bylaws. In other words, it can buy goods in small amounts under the same procurement deal. The rules have also given powers to the head of the NTB to appoint an internal auditor to audit the board’s accounts.
According to Dhurba Narayan Shrestha, an NTB board member, the decision to amend the bylaws was taken by the board as inviting tenders for promotional activities on international news channel was too difficult under the existing process or through the PPA.
“Giving power to the CEO to use funds doesn’t mean that he or she will misuse it because the planned spending has to be approved by the board first,” he said. “Besides, there are a number of anti-graft bodies which will be keeping a close watch for misuse of funds.”
Source
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