When retired officials are elected to local councils, they claim remuneration besides their pension. The malpractice of dual pay at the local level in the absence of federal law.
Laxmi Basnet: Centre for Investigative Journalism-Nepal
Kumarimuni Gurung
Vicr-chairperson Kumarimuni Gurung of Kwaholasothar Rural Municipality in Lamjung is the wife of Gandaki Province chief minister Prithvi Subba Gurung. A retired primary level teacher, Kumarimuni has not stopped collecting her pension even after being elected to the rural council. According to a law passed by the province on the perks for the office bearers and members of the local level, a rural municipality vice-chairperson is entitled to a monthly pay of Rs 26,000 and Rs 1,000 in communication allowance. Gurung enjoys both the perks and pension.
Gurung also heads the judicial committee of the rural municipality. She said that she had continued to receive her pension reasoning that she had no idea if pensioners receive their pay as people’s representatives at the local level. According to Pitambar Saru, chief administrative officer at the rural municipality, Gurung is being provided with the pay and perks since she has notified that she isn’t a pensioner.
The Gandaki Province on May 7, 2018 issued the law governing the pay, perks and facilities for the ministers and assembly members of the province and the office bearers and members of its local federal units through publication in its gazette. Clause 8 of the Act says that a beneficiary has to choose between their pension or the current pay and perks. “If a person receiving pension from the state treasury is elected or nominated as an office bearer or member, such office bearer or member is entitled to either the pension or the monthly facilities provisioned by this Act,” reads the clause. This legal provision came into effect on July 16, 2017. Kumarimuni Gurung has not abided by it.
Chandra Kishore Tharu, ward chairman of Dudhauli municipality-5 in Sindhuli, is a former teacher. He has also been receiving both the pension and the pay for a people’s representative. So far, he has received more than Rs 300,000 from the municipality. The latest report of the Auditor General has raised questions over the payment received by Tharu from the local government. Chief Administrative Officer of Dudhauli Dipendra Poudel says Tharu is preparing to give the money back to the municipality.
Two ward chairpersons and a ward member of Tinpatan Rural Municipality in Sindhuli have also received their pensions and pays until last month. They are Ward 5 Chairman Dinesh Kumar Ramauli, Ward 6 Chairman Bir Bahadur Pulami and Ward 3 member Hit Bahadur Bista. Two of them are retired primary teachers while Bista is a retired Nepal Army soldier.
Ward Chairman Ramauli says he had been accessing double facility out of ignorance. Claiming that there were problems in auditing, he said he had stopped receiving the pay as a people’s representative since the end of last year. According to Tinpatan RM chief administrator Rajan Thapa, the local council has released his pay until last month since Ramauli has not written for a halt to his perks as an elected official.
Ward 6 Chairman Bir Bahadur Pulami claims that he has stopped receiving pension for the last three to four months. But he has not frozen his pension. “I’ve only not drawn the money from bank. I’ve not filed an application for a halt to my payment,” said Pulami. No pensioner’s pay is halted unless one notifies about it at the Pension Management Office, Teku.
Those unable to travel to Kathmandu can also apply at the District Financial Comptroller’s Office or the local level. For effect, the application has to reach Teku. Records at the Teku office show only 60 to 70 elected officials have applied for suspension of their pension.
The monthly allowance of Tinpatan Ward 3 member Hit Bahadur Bista is Rs 5,000. He’s also a pensioner and receives both the payments. Bista’s dues have been cleared through bank until last month.
This ill practice is prevalent across the country. Two ward chairpersons and three executive council members of Pyuthan Municipality have also been claiming both their pensions and allowances. According to Mayor Arjun Kumar Kakshapati, process has been started to return the allowances since the payment was regarded as arrears. “The municipality has stopped payment to people’s representatives after revelation of [some of them claiming] dual payments. The process has begun to reclaim the money unaccounted for,” said Kakshapati.
Laxmi Narsingh Bade Shrestha of Banepa Municipality in Kavre has also been claiming dual facilities. He is a retired senior superintendent of police. Six elected officials including him are pensioners in the municipality. They include Ward 3 Chairman Krishna Prasad Dahal, Ward 6 Chairman Sachitananda KC, Ward 7 Chairman Barna Shakya, Ward 12 Chairman Ram Bahadur Kunwar and Ward 13 Chairman Surya Narayan Napit.
According to Chief Administrative Officer Bhojraj Ghimire, payments have not been made to KC since December last year as per his request while money is being released to others. “Payments are being made to other elected officials since they have not notified us formally about denying their remuneration,” said Ghimire.
Municipal leader Shrestha denied having claimed dual facility. “I’ve not received my pension since being elected. It’s on hold,” he said. Asked when he notified the authorities for a halt to the payment, he said he had not done so. Nobody’s pension is stopped until one notifies voluntarily about it.
Many former teachers and government workers have won the local level elections in Kavre. According to Narayan Prasad Upadhyay, chief of the Kavre financial comptroller’s office, however, no people’s representative has come forward to give up their pension.
Bharat Lal Shrestha, ward 1 chairman of Kathmandu Metropolitan City, is a retired army man. He has not refused his pension. Humla District Coordination Committee chief Dan Bahadur Raut, deputy chief, ward chairman and ward members are also pensioners. Raut, Simkot Rural Municipality Ward 5 member Karna Bhandari, Kharpunath RM ward 2 chief Karna Rawal, Sarkegard RM ward 7 Chairman Krishna Prasad Jaisi and Adanchuli RM ward 5 Chairman Mahabir Chhatyal are also enjoying double benefits.
Clause 8 of the Karnali province’s “Act Related to the Facilities for the Office Bearers and Members of Local Level-2018” provisions only one–the pension or lawful perks–facility for a pensioner paid from the state coffers who is elected as an office bearer or a member. Pension-receiving people’s representatives, however, have not honoured this provision.
After the debate over whether people’s representatives deserve both their pensions and pay, provinces have started formulating laws on this. Provinces 2, 3, 5, Gandaki and Karnali have ruled out both the facilities for such people’s representatives but Province 1 is silent on the issue.
Sudurpaschim Province, however, has provisioned the elected officials who retired from government service 50 per cent pay for their new responsibility. Clause 7 Sub-clause 1 of the Act related to the facilities of office bearers and members of the local level says: “Any elected office bearer or member who is receiving pension after retiring from the service of Nepal government, province government or local government is entitled to 50 per cent of the monthly remuneration.”
Based on this provision, Mayor Krishna Singh Nayak of Melauli Municipality in Baitadi has been enjoying 50 per cent pay on top of his pension. He is a former government worker. Chief administrative officer Kamalpati Bhatta of Pancheshwar Rural Municipality says people’s representatives who already get pension are provided with 50 per cent facilities at the local level.
Need for federal law
The federal council of ministers decided on November 3, 2004 that pension recipients who get reappointed in government positions cannot enjoy double perks. A decade later, the general administration ministry issued a circular to its mechanism not to distribute pension and new pay both. The same month, the Commission for Investigation of Abuse of Authority also issued a similar directive.
Then chairperson of the Public Service Commission Kayo Devi Yami and members Tika Datta Niroula and Rajendra Prasad Sah, who had been appointed after retirement from government service, filed a writ in the Supreme Court on February 14, 2016. As the case was sub judice, the first Cabinet of KP Sharma Oli decided on January 22, 2016 that such officials could draw either their pension or the new pay, whichever amounted higher.
When the court ruled on January 3, 2017 that it would not be illegal to claim both pension and remuneration for a new assignment, the order made it easier for retired staffers and administrators to tap both the sources. This ruling has led political and constitutional body appointees and people’s representatives at provincial and federal assemblies to openly claim dual facility.
Following on their footsteps, elected officials at the local level are claiming dual perks too. The Auditor General’s Office treats such payment as arrears. “On moral ground too, no one can claim additional perks. What could anyone do when even the Supreme Court ruled such claims as legal,” said former secretary Dwarika Nath Dhungel.
In the absence of the federal law to clearly deny pension and remuneration together, many appointees or officials are enjoying both the facilities citing the court’s ruling. Therefore, there is the need for a federal law denying dual income. “Provinces formulated laws but I have not seen them. But the federal government must not delay clear legislation. Unless there is such law, moral principles alone can’t restrict lucrative means,” said Dhungel.
Former administrator Bhim Dev Bhatta also stresses the need for immediately formulating the federal law. “There has to be restriction on a single person claiming money from the state coffers under two headings at the same time,” he argues.
The latest report of the Auditor General’s Office shows nine federal units of Palpa, Bhaktapur, Sindhuli and Pyuthan spending on remuneration for pension-receiving officials. Pyuthan Municipality and Gaumukhi Rural Municipality of Pyuthan have released Rs 1.416 million as payment to elected officials who receive pension too.
The Mathagadhi, Rambha, Purbakhola and Tinau rural municipalities of Palpa have paid over Rs 1.5 million to pension-receiving office bearers while such payment from Dudhauli Municipality and Tinpatan rural municipality of Sindhuli amounts to Rs 805,000. Including Rs 576,000 paid by Changunarayan Municipality in Bhaktapur, the AG’s office puts such questionable payment at over Rs 4.3 million. “Such dual payment has to be reclaimed. Other local units also have to make payments after the office bearers make self-declarations of their entitlements,” the report says.
