Chief Minister, ministers, speaker and lawmakers have routed state funds to their villages and constituencies, depriving other areas of crucial development expenditure in far-western province, an investigation by CIJ has found.
Basant Pratap Singh: Centre for Investigative Journalism-Nepal
On August 19, 2018, Jhapat Bahadur Bohara, Minister of Economic Affairs and Planning in Far-western Province, was shown black flags in Ramarosan of Achham district by his party cadres. They were angry with Bohara who they claimed had allocated budget from the provincial government to his own village and discriminated against others. Bohara was on the way to attend a program called ‘Minister with People’ organized by the Ramarosan Rural Municipality of Achham, but returned to Dhangadi after being shown black flags.
Badakot-Bayana road which is under construction by Khaptad Chhanna Rural Municipality (left) and another road to the village under construction by provincial government (right).
On June 16, 2018, the provincial government allocated Rs. 505,100,000 to the Ministry of Physical Infrastructure Development. A large portion of the budget has been approved for villages belonging to ministers, lawmakers, and influential people of the area. Minister Bohara has channeled most of the budget to Bannigadhi Jayagadh Rural Municipality of Achham district. He hails from the village.
The provincial government has allocated Rs. 115,600,000 to the Rural Municipality in current fiscal year for 20 projects. In comparison, the district’s 10 local local bodies have received only Rs.467,500,000. Locals said the discrepancy occurred because Minister Bohara wanted to allocate funds to his village. They believe that disproportionate amount of money was channeled into Bannigadhi Jayagadh Rural Municipality due to his dominance.
Out of the village’s six wards, the ward belonging to Minister Bohara has received the highest amount. Ward no 6, which Bohara calls his home, has received five times more budget than other five wards. The provincial government has approved Rs. 96,120,000 for construction of road, drinking water, irrigation, embankment and building. This amount is more than the total capital expenditure of the Rural Municipality. While the Rural Municipality’s capital budget for the current fiscal year is Rs. 91,353,000, the provincial government has allocated Rs. 19,500,000 for the five remaining wards.
Despite huge allocation of the budget, Rajendra Bahadur Khadka, the chairman of Bannigadhi Jayagadh Rural Municipality, is not happy with it. He said the provincial government failed to allocate budget to projects he recommended. “The government didn’t approve budget for a single project that we recommended,” he said. According to Khadka, his office had proposed 30 projects including roads, drinking water, agriculture and health for the provincial budget. However, the government refused to approve budget for the projects. Only the minister’s plans were approved.
Some villages of Achham have to be content with fewer budgets than for projects that went to Bohara’s ward. For example, the provincial government approved only two projects worth Rs. 7 million for Dhakari Rural Municipality. Kamal Bazaar Municipality, which has twice more population than Bannigadhi Rural Municipality, received Rs. 22 million. Similarly, the government has sanctioned only Rs. 37 million in Mangalsen Municipality and Rs. 41.5 million in Safebagar Municipality.
Minister Bohara has managed to route Rs.20 million for drinking water project in his village. Under the District Coordination Committee’s Rural Water Resource Management Project, 10 drinking water projects worth Rs. 23.5 million have already been completed in the minister’s village. Through the project, drinking water from more than 200 taps have been supplied to over 644 households. The project, which has earned reputation for sustainable drinking water, has also received international awards. “I am surprised by the way the provincial government has approved its budget. It has allocated budget for drinking water projects in villages which already have it. Same has happened with roads,” said chairman Khadka.
But Minister Bohara has no qualms about channeling the budget to his village. “The budget is not allocated by measuring population or size of a place. It’s handed as per the requirement,” he said.
A Chief Minister obsessed with his village
The Ministry of Physical Infrastructure Development has allocated Rs. 46.5 million to Doti, the home district of Chief Minister Trilochan Bhatta, in current fiscal year. The budget has been misused so much that some projects contracted by the Rural Municipality have been cancelled under pressure from the Chief Minister’s personal secretary.
Achham: Cadres of his party show black flags to Jhapat Bahadur Bohara, Minister of Economic Affairs and Planning, for channeling funds to his village.
Local contractor Ramesh Khadayat had won a bid to build road in Bogtan Rural Municipality-4 of Doti district in 2018. Khadayat started construction as per the agreement. However, the provincial government provided an additional Rs. 5 million to the project. Prem Bahadur Kunwar ‘Prakhyat’, Chief Minister Bhatta’s secretary, played instrumental role in allocating the state funds. Following that, Kunwar himself interfered on it and dismissed the contractor from work.
Khadayat is yet to receive his Rs 45 million payment from the Rural Municipality. “I was forced to withdraw from my work after the provincial government unveiled its budget,” he said. After the removal, the Consumer Committee started to build the road. “We wouldn’t build it if the provincial government had told us that they will allocate funds for the road. We don’t know why they did so half way through the project,” said Kamal Gadsila, chairperson of the Rural Municipality.
In Doti district, fund was allocated under different headings for the same project in order to provide benefit to party cadres. The provincial government has approved two projects for an embankment on Bandikhola of Sikhar Municipality-8. Under the embankment on the river, two separate funds worth Rs. 1.5 million and R.s 4 million have been allocated. An irrigation project of the Municipality’s ward number 11 has received Rs. 5 million and Rs. 3 million in funds.
Two projects have been funded for the same work at Adarsha Rural Municipality-6 of Doti district. Dispute rose after two separate funds of Rs. 3 million each were approved for Saukir-Ghattekulo Irrigation Project. Tensions boiled over after Bharat Bahadur Bohara ‘Yogendra’ who was a CPN-Maoist candidate for chairperson during the polls, tried to divert funds to another village.
Following the tensions, Tej Oli, a local, registered a complaint at Water Resource and Irrigation Division. “Just because you have access to power doesn’t mean you can divert funds to another project. Is this their household budget? The funds must be spent on projects approved by the government,” Oli said. He accused Bohara of trying to divert funds to a project at Silla village of Adarsha Rural Municipality-6.
Chief Minister Bhatta’s home is located at KI Singh Rural Municipality. The provincial government has allocated Rs. 3 million to an irrigation canal at Ranagaun of ward no 5. The Anagad Barbhara project can hardly irrigate farmlands of 15 households. Had the fund been invested in Botadisain Irrigation Project some five metres uphill from here, it would have irrigated at least 200 households. “If the money was invested in the project, it would have irrigated all the farms. But the fund has been directed as per party cadres’ interest. What kind of progress are we going to make in such a way?” said Ram Chandra Rana, ward chairperson of KI Singh Rural Municipality-5.
Projects worth Rs. 12 million for roads and Rs. 2.5 million for irrigation have been approved in ward 6 of KI Singh Rural Municipality, where Chief Minister Bhatta’s home is located. Similarly, Rs. 500,000 has been approved for school, which is headed by his elder brother Shalik Ram Bhatta. A further Rs. 5 million has been approved for sports, drinking water and health post in the area.
The provincial government has allocated Rs. 33.5 million to 11 projects in Jorayal Rural Municipality, which is home to Shiva Singh Oli, personal secretary of Chief Minister Bhatta. “Most of these projects have been approved not after need assessment but in the interest of party cadres. They have been appointed as members of Consumer Committee so that they can divert the fund,” said Lokendra Shahi, chairperson of KI Singh Rural Municipality.
Chief Minister Bhatta denied diverting funds to projects in his village. “That’s not true. None of the ward of the district is deprived of provincial government funds. If the project is big, huge amount could be allocated and if it’s small, the money will also be tiny,” he said. Since the government was new and the province lacked mechanisms, there could have been some problem in allocating funds, he said.
Fifteen Projects for Speaker
Khaptad Chhanna Rural Municipality of Bajhang district had appropriated Rs. 2 million last year to connect Badakot village with road. However, in current fiscal year, Rs. 3 million was allocated to connect the village with the road. Road construction began without survey in order to spend the provincial fund. “Construction work has started on the basis of the survey, which according to villages, was carried out earlier,” said Jagat Prasad Joshi, head of Ministry of Infrastructure Development in Baitadi district.
According to villagers, the Rural Municipality had written to the government requesting to adjust the plan because two separate roads were not needed for the same village. However, the province did not care about the letter. “If the motive was to develop, it would not have been so. The goal seems to let party cadres use funds for their expenditure. This will create hostility in the village,” said Barka Rokaya, the chairperson. The decision was made after Arjun Thapa, Speaker of the provincial assembly, put pressure on the government to do so. However, Thapa claimed the village road was not motorable so the province had to build a motorable road in the same place.
The provincial government and the rural municipality are also at loggerheads over Padikot Irrigation Project located in Khaptad Channa Rural Municipality-4. The province has allocated Rs. 3 million to the project this year. The Rural Municipality had spent Rs. 1 million in the same project. It has appropriated Rs. 2 million for the remaining work.
The Rural Municipality started construction work from the water source while the provincial government, which worked under the Consumer Committee, started from the bottom. The head of the Consumer Committee is Dibya Thapa Rokaya, daughter of Speaker Thapa.
Speaker Thapa’s home is located in Khaptad Channa Rural Municipality. Thapa has used his power to allocate government fund to 15 projects worth Rs. 12 million in this village. “Not a single project recommended by the Rural Municipality was included in the budget. A lot of money has been diverted to projects in the villages of powerful people and their relatives,” said Mangal Sunar, chairperson of ward no 4.
An Embankment without a River
The provincial government allocated Rs. 7.5 million fund for an embankment on Sunkhola in Dogadakedar Rural Municipality-3 of Baitadi district. But when a team led by Govinda Bhatt, an engineer of Water Resources and Irrigation Development Division office, went on a field visit to prepare a design, it could not find the river. The team is now preparing to implement the project under ‘Sunkhola School Embankment’. “We couldn’t locate the river so we changed it to Sunkhola School Embankment,” said Bhatt, who led the team.
Such fraud is not unique to this village. The province has set Rs.2.5 million for Tunaijar Khamtola Land Erosion Control Project near Khamtola of Baitadi-Darchula Mahakali Highway. However, the area has not experienced any land erosion. A landslide had occurred 11 years ago. The landslide has been under control after Baitadi-Darchula Road Project spent Rs.21.589 million through the contractor Lohani-Chandra and Basant JV between December 2011 and August 2012.
But, the provincial government allocated funds for the project. The District Disaster Rescue Committee of Baitadi hasn’t mentioned the risks from soil erosion in its disaster response plan for 2018. Similarly, Rs. 89.5 million has been allocated for 21 other projects.
Influential people misuse budget
In Baitadi too ifluential leaders have directed funds to projects in their areas. The provincial government has allocated Rs. 84.95 million funds to Dogadakedar Rural Municipality, which is home to Liladhar Bhatta, a provincial assembly member. Money for five projects including drinking water, road, irrigation, landslide control and embankment has been approved in his home village. On June 21, 2018, Naresh Pandey, Bhatta’s personal secretary, posted on Facebook a list of 39 projects and their budget applauding the lawmaker for the role he played in providing support to his constituency.
Budhiganga Municipality of Bajura, which is home to Internal Affairs and Law Minister Prakash Shah, has received more funds than other municipalities. The municipality has received funds worth Rs. 78.5 million for nineteen projects including Irrigation, drinking water, road, river control.
The provincial government has allocated Rs. 71.69 million for projects in Budhinanda Municipality of Bajura district, which is home to Baldev Regmi, a lawmaker of provincial assembly. The fund was set for 13 projects. Nearly half the amount from the government budget has been allocated to the villages of Minister Shah and Regmi. The total budget sanctioned by the Ministry of Physical Infrastructure Development in Bajura district is Rs. 312.69 million.
The drinking water project built by the municipality at Budhinanda Municipality-8, Lalbada is nearing completion, but the provincial government has approved Rs. 6 million for the area.
Minister Shah said the budget of Budhiganga Municipality appeared huge because there were several common projects. “All roads are connected to other villages. The roads that lead to Martadi, Atichuar, Khaptad, Kanda don’t only belong to Budhiganga,” said Shah. He appeared content for the fact that he was behind the allocation of huge government fund in his district. “This year, the fund for Bajura was huge because greater numbers of lawmakers have been elected in provincial assembly,” he said.
There is already a concrete bridge over the canal along Mahendranagar-Bishnudham Road on Mahakali Irrigation Project. But the provincial government has allocated fund for a bridge over there. The old bridge, built by the Korean company during the construction of canal for the Mahakali Irrigation Project, is still working. However, fund has been allocated to build another bridge. Prakash Rawal, State Minister of Industry, Forest, Environment and Tourism, had directed the fund in interest of his cadres, according to Khem Airi, a local. “We didn’t need one more bridge in the place where there’s already a functioning bridge. But Rs. 4 million has been allocated,” he said. A two or four-lane bridge was needed in its place, he said adding that Rs. 4 million would not be enough to build a strong bridge.
Four projects in a river
The provincial government has allocated Rs. 30.5 million for the construction of an embankment on Khaniya Khola river in Bhimdatta Municipality of Kanchanpur. In the current fiscal year, four projects for construction of embankments on the river have been approved. Rs. 20 million for an embankment on Khaniya Khola river, Rs. 7.5 million for Bhasi Maholiya, Rs. 4 million for embankment on a farm and Rs. 3.5 for controlling Khaniay Khola river. Mohan Telar, an engineer of Water Resources and Irrigation Development Division in Kanchanpur, said: “All the projects have been approved for the river, though they have been put under different headings.”
For the last two years, the third phase of Mahakali Irrigation Project has been constructing an embankment under the program. A 6.5-kilometre canal from Churia hills to Bhasi is under construction. A fund of Rs.150 million has been invested for the construction of an embankment under the project.
The municipality, which is home to state minister Rawal, is recipient of the largest fund for physical infrastructure and river control in Kanchanpur district. Ward no 1, 3, 6, 7, 8, 9 of Bhimdatta Municipality has received large amount of fund under the annual budget. These wards are known strongholds of Rawal. Rs. 81.5 million has been allocated to villages including Barkunda, Rautela, Bhasi, Tilakpur, Vishnudham, Aithpur and Brahmadev under various projects from drinking water to road and bridges. The provincial government has allocated Rs.110 million for physical infrastructure across Bhimdatta Municipality, which has 19 wards.
Other municipalities near Bhimdatta have received less funds than the latter from provincial government. For example, only Rs.17.5 million has been allocated in Punarbas Municipality and Rs. 16.5 million in Belauri Municipality. Similarly, the government has allocated Rs.20.7 million in Mahakali, Rs.21.5 million in Lalajhadi Rural Municipality and Rs. 23 million.
After the Bhimdatta Municipality, Krishnapur Municipality has received the largest fund from provincial government. Rs. 75 million has been sanctioned in the municipality, which is home to Mahesh Datta Joshi, a provincial assembly member who was billed as the potential chief minister during the election.
To understand how influential people’s interference in budget allocation has caused discrimination, you have to look at two villages in the area. The provincial government didn’t allocate any funds for Saipal Rural Municipality and Bhitthad Chir Rural Municipality. Rajendra Dhami, chairman of Saipal Rural Municipality, said, “We have been discriminated due our geography. But even our leaders have discriminated against us. We had recommended 15 projects to the provincial government, but none of them were approved. Can there be any more discrimination than this?”
Chair person of another village in Bajhang is also angry with the provincial government. “We had sent a proposal seeking funds for 28 projects. None were approved,” said Prem Bohara. “I have heard that some of the projects have been included even the publication of red book. But I haven’t received an official information.”
Clash between province and village
Most local representatives are unaware of how government has allocated funds to areas of influential people. “We sent 44 projects passed by the municipal assembly to the province, but none of them were approved,” said Birendra Khadka, Mayor of Jayaprithvi Municipality of Bajhang. Bhuwaneshwar Joshi, chairman of Thalara Rural Municipality echoed his words. “We don’t know where our recommendations were thrown at. However, personal projects of influential people have been including in the budget,” he said.
Nawaraj Aryal, Acting Secretary of Economic Affairs and Planning Ministry, said he did not know that on what basis the budget was allocated. He said Ministry of Physical Infrastructure Development had presented the projects, which were approved by the Ministry of Finance. “Concerned ministries had collected proposals and proposed budget for projects. We only issued budget for such proposals,” he said.
Indra Dev Bhatt, the secretary of Ministry of Physical Infrastructure Development, admitted the funds were arbitrarily distributed because of the failure to introduce clear criteria and the basis for budget. “There are cases where an irrigation project is proposed, but there’s no water. In other cases, there’s no land to irrigate,” he said.
In protest against the arbitrariness of the provincial government, some local bodies have not taken ownership of the projects and funds. The problem is so widespread that forming a Consumer Committee to implement the plan has increasingly proved difficult. According to Barka Rokaya, the chairman of Khaptad Chhanna Rural Municipality of Bajhang, the officials have refused to form Consumer Committes because the government approved projects were against local needs. “No project has been approved with an aim to develop. So how can we recommend it?,” he said.
After local bodies refused to recommend the formation of Consumer Committees, the Ministry of Physical Infrastructure Development has issued new criteria for formation of Consumer Committees. “Some local bodies refused to recommend in order to implement the plans. So we made the decision,” said Jagat Prasad Joshi, the Chief of Infrastructure Development Office in Baitadi district.
(With additional reporting by Mohan Shahi in Doti, Bhawaani Bhatt in Kanchanpur, Lokesh Saud in Baitadi, Nimendra Shahi in Bajura, Dhanraj Saud in Achham and DB Bista in Bajhang)
