Necessity of Corruption
Control and Improving Governance at Nepal-India Border
Abstract
Nepal has long made efforts in developing the country with all its
social, economic policies and its enormous resources and huge potentialities. Recent
developments in ruling system of government have shown rays of hope for
building nation. Corruption and poor governance of transition period are the
main constraints against development. Bordering country India has certainly
positive roles for Nepal and governments of both the sides have been putting
joint efforts in this regard at different levels.
Key words: corruption
control, governance, customs, border, government
INTRODUCTION
Corruption
and bribery are the major economic crimes in Nepal. Economic crimes of various
natures are put within the definition of corruption under the Prevention of
Corruption Act, 1960. Corruption has worldwide negative affects and a matter of
concern for governments and people alike. Combating corruption has become a
very common topic of discussion for people from all walks of life. At the
international levels corruption prevention and counter measures especially in
United Nations General Assembly it has got focus. All the possible thoughts
have been given for it at the council meetings.
Nepal is not an exception to it
either. Various mechanism and policies were formed to work on it and still
there are attempts in progress and their yielding results. It has become open
secret in Nepal that people dealing with honey would certainly have the opportunity
to taste it. Likewise authorities in possession of liberty of their power and
influence would not miss to let slip fortune rather opt for selfhood. People in
Nepal have well experienced of corruption even in politics and the governance
of all the major parties while in power. No matter which party and what agenda
they have whosever government comes there seems no tangible difference. There
are caused hindrances in corruption investigation and prosecution. The major
problem lies with the ineffective laws and their compliance. Corruptions in
Nepal are of multi-forms. 2019 complaints of corruption and improper conduct
were registered in single fiscal year of 1996/97 with the Commission for
Investigation and Abuse of Authority. Upon investigation amazing number of
officials from minister to secretaries were convicted (Paudel, 1998).
A loophole of tax revenue is the
evasion case. Tax revenue is the most reliable and foremost source for any
government to run the state. In context of Nepal tax revenue and non-tax
revenue is comprised of 80.4 percent and 19.6 percent shares respectively. Violation
of customs regulations, smuggling merchandise of consumable to all types of goods
have serious adverse impact on tax revenue of the country. The business
community and high-income groups are the most likely engaged in tax evasion. Though the countermeasures are there but they may not suit them properly
as thought of and more remains to be done. The countermeasures prevalent in the
country are as follows;
Commission for the Investigation
of Abuse of Authority (CIAA)
The
CIAA is a constitutional body established under Article 97 of the Constitution
of the Kingdom of Nepal, 1990. The Commission investigates cases of abuse of
authority related to corruption or improper conduct by any official while in
capacity of public office. The CIAA functions as a watchdog and Ombudsman against
corruption. It can warn and pinpoint any person found involved and so it can
recommend concerned agencies for further penal actions. The CIAA in many cases
has booked accused persons to court in accordance to the prevailing laws.
National Vigilance Center (NVC)
NVC was
established to play a preventive and vigilant role so as to ensure good
governance in fair economic discipline, moral, ethical and transparent manner.
The NVC was formed according to anti-Corruption Act, 2059 BS (2002) aiming to mitigate
the corruption activities effectively and build a corruption free society.
District Administration Office
(DAO)
DAO is
the main administrative agency of the government in the districts. The CIAA has
delegated some of its power to the Chief District Officer of the DAO to
investigate cases of corruption
within the district (Paudel, 1998).
Nepal-India like border is really
hard to find anywhere else in the world for the existing provision for people
of both the countries to pass through any points to their convenience. The
number of check posts meant for carrying out bilateral trade is 22 for these two
countries. However for third country people to cross the border with valid
documentation and permits there are designated six points. The smuggling and
encroachments could be for the reason of whole area of border not covered by
the security agencies of both the sides of Nepal and India.
The government of Nepal has deployed
Armed Police Force (APF) to look after the international border of Nepal
sharing with India and China. Other than the security deployment in the field
of revenue collection APF has 21 Border Security Offices, 10 Revenue &
Customs Patrol Security Bases, 48 Border Out Posts, and 25 temporary BOPs
totaling 104 points covered. Flying Squads of two teams since June 10, 2010
were initially put under the command of Director General of Revenue Investigation
Department to assist control of revenue pilferage. The statistics of Nepalese
Rupees 170,767,699 in the fiscal year 2009/2010 was made through seizure of
smuggled merchandise (Onta, 2010).
Customs contribution of tax revenue
in 2007/2008 was 24.7 percent. The following year in 2008/2009 it decreased to
22.1 percent. In the fiscal year 2009/2010 it reached to 23 percent.
Traditionally primary source of revenue is the customs. Even now around 52
percent portion of tax revenue comes from customs administration. Customs
administration has vital role in the whole economy of the country. There should
be no reluctance in admittance by customs administration against any flaws
rather to address them. Rectifying flaws or irregularities and resolving them
the most appropriate way need to be developed.
Professionalism
and merits of agent tradesmen too count for the quality standard of customs
administration. Agent tradesmen are expected to adhere to code of conduct but
unfortunately field reality is different. Effective ways of compliance to
certain standards have still to be figured out in absence of which the agent
tradesmen of good moral are out of sight. The sanction of a system for new
agent is still pending for more than a decade. Agent tradesmen could also be
taken responsible for incurring the irregularities and indiscretion. Slogan of
the International Customs Day 2011 "Knowledge, a catalyst for Customs
Excellence" inspires the customs administration to face the challenges
(Upadhyay, 2010).
Smuggling
across the Nepal-India border belts likely increased due to the displaced
customs offices of insurgency days not reinstated yet. According to the
Nepalgunj Customs Office, lacking of customs offices in adequate number let
smuggle of goods thrive along the border resulting adverse affect on revenue
collection of the country. Revenue of tens and thousands rupees worth goes
uncollected for non deployment of security forces along the Nepal-India border
(The Himalayan Times, 2012).
There
are other illegal activities like trafficking of girls to Indian brothels in
cities like Mumbai and New Delhi; trafficking of narcotic drugs like hashish
and marijuana; small arms and ammunition; movement of criminals and hideouts of
terrorists. Nepal and India have mutual consent over to control such illegal
activities along the border, but there is lack of an effective and practical
approach. All the above quoted illegal activities are due to the practice of
corruption in the government bureaucracy, ad hoc policies, feeble rules and slackness
in monitoring and evaluation. Customs on both sides of the border cannot be
ruled out involving in corrupt practices (Vidya, 2012).
Illicit cross-border flows could involve
networking from different countries. Those could be transnational and linking
up laymen to politicians of broader web abroad. They are also found dealing in
more than one trade of smuggling drugs to arms and human trafficking, smuggling
of guns to initiate or sustain combat or insurgency. Transparency International
has tried to study it in terms of illegal logging. The organization has data
regarding the corruption linkages of South Asia that was conducted through the
Forest Governance Integrity (FGI) project. The cross-border nature of the trade
is facilitated by different drivers of corruption, including: political
corruption, foreign bribery in supply countries, corruption in licensing and
concessions, timber ‘laundering networks, judicial corruption and weak due
diligence on the part of financial institutions.
Additionally political leaders are
corrupt and they spoil the system. Cross country cooperation and coordination
are the best effective tools to prevent, detect and sanction the corruption
that contributes to the problem of illegal cross border flows. Efforts have to
be focused unto governance issues to help build transparency, accountability
and integrity of institutions and major stake holders (Craig, Finn, 2011).
METHODS
AND APPROACHES
For data collection primary and
secondary sources were used. The secondary sources include
- CIAA annual reports and published bulletins
- Reports of Transparency International/Nepal
- Journals and articles like publications
- Surfing web nets
Primary
data were collected through questionnaire and interview tools. It
sounds good but not comfortable for concern likely people. This topic as seems
exciting is so interesting enough to attract people to listen but reluctant to
speak openly their personal views. This research paper author himself being
government employee has the privilege of sharing experience. Conceptual
framework the analytical way is worked out. Components of justification for selection
of field survey method as the main research method, use of study tools, data
collection and analysis procedures, validity and reliability of the study tools
are sketched in details under the respective readings. Qualitative methods were
applicable for this research study. Practical methods like visiting people in
person and seeing in fields for the collection of information, interviews of
civilian bureaucrats, police officers, local laymen, journalists, political
affiliated people, traders, farmers and students like intellectual people were
talked and encountered.
THEORETICAL DISCUSSION
Nepalese
soil and its people have experienced the greatest changes in politics to ruling
system of the country discarding age old monarchy. Armed and unarmed movements
of Nepalese people since 1996 have restructured socio-political power
structures of the country. The country has currently an ad hoc government under
Interim Constitution of Nepal, 2007. A Constituent Assembly was formed in 2008
to draft a new constitution of deadline on 27 May 2012 but not to avail.
Economically,
Nepal is facing a downturn in industrial sectors, price hikes and
irregularities affecting the whole country, particularly the general population
compelled to live below poverty line not even a USD per day. It is more
aggravated by shortage of electricity supply up to 16 hours of load shedding a
day. Naturally it would have negative impact on day to day life of any layman,
commercial industry and public services as well (Annual Report, 2012).
Generating electricity power is beyond its capability throughout the whole year
on pretext of lack of water during the summer, deposit of silt on river belt
reducing collection water during the rainy season and during the winter flow of
limited water from the sources of Himalayas.
Good
governance as a matter of fact conceptually is applicable in all the organs of government,
legislature, judiciary, media, private sector, corporate sector, trade unions
and even non-government organizations. Public accountability and transparency
are reciprocally relevant for one another. Bad governance is counterproductive not
only to socio-economic and political development but all other interlinked
matters as well. The yardstick of measuring bad governance are corruption,
injustices, inequity, integration crisis, ethno religious feuds and a lot
others. Corruption issues are the most critical in terms of morality.
Corruption causes the country laden with poverty damaging the image of good
governance tarnishing reputation of the country. Consequently it makes the
country people further vulnerable to manipulation. In order to cherish good
governance policies of anti-corruption must be put in place. The legislature
and the judiciary also should be operational and agile to self responsibilities
as they are inevitable in good democratic governance (Ilufoye, 2010).
Good
governance means accountability in all the sectors of its ramifications. It
also means the rule of law in unfettered judiciary that denotes freedom of
expression and option for political association.
FINDINGS
Illegal trades along borderlines
of Nepal worsen the economy of the country and its neighbors. Though not
official Federation of Nepal Chamber of Commerce and Industries has the
statistics of illicit trade along the Indo-Nepal border alone amounts to 38.9
per cent of Nepal's foreign trade. Annually Nepal has loss of around Rs 3
billion in royalty because of the black market (Pokharel, 2012).
Nepal
border areas seem to be well misused by civil servants and smuggling networks
with their behaviors of give and take practice in bribery, corruptibility and
arbitrariness. These all activities make Nepal look weak and corrupt state and
its governance mechanism poor. Further the borders people seem take it as their
right to transcend the state and boundaries (Benjamin 2009, p 19).
Nepal
has high demand for gold particularly in the winter season as for wedding
ceremonies regardless of price hike. The government restriction policy of
import to certain items indirectly leads to their illegal incoming to Nepal.
The political instability, continuous crisis of electricity, shortage of fuel
have created environment for business enterprises to convert their properties
into gold. Ups and downs of capital market have helped grow this trend. Gold
import policy of the government has not only control but helped grey traders (Sarkar,
2012).
Nepal
has become a hub for illicit trade of red sandalwood from India to Tibet. Since
Nepal is signatory of the Convention on International Trade in Endangered
Species of wild fauna and flora (CITES) it cannot let red sandal wood pass
through Nepal to China. In November 2012 a consignment of smuggling sea horses
(species of tiny animal in deep sea) en route to China were caught in
Kathmandu. Similarly, precious timber, herbs and wildlife from Nepal highlands
are stealthily taken to India and China. Illegally traded single piece of
thirty millimeter Yarsagumba (precious herb from Himalayan high land) alone is
worth thousands. Economists opine such black market trades comprise a considerable
portion of Nepalese GDP. Studies show Birganj has the highest amount of unauthorized
trade each year followed by Biratnagar and Bhairahawa the Nepal India border
line Nepalese cities (Pokharel, 2012).
Finance
Ministry of Nepal had directed the department to strictly implement the Maximum
Retail Price provision at the earliest. The Department of Customs has made it
mandatory to declare the MRP of goods having high volume and value in trade and
revenue (The Himalayan Times, 2012).
Nepal customs and revenue
departments have good number of Armed Police Force personnel under their
command deployed to help them. From the very beginning of APF deployment in
coordination with customs and revenue the collection of revenue and tax have
remarkable progress. APF, a paramilitary was raised in the year 2000 during the
days of insurgency especially to control international borderlines with India
and China. Currently APF is engaged in safeguarding Nepal territory border. APF
has mandated tasks as;
a) to control any ongoing or would be
armed conflict within the country,
b) to control any ongoing or would be armed
rebellion or separatist activities within the
country,
c) to control any ongoing or would be
terrorist activities within the country,
d) to control
any ongoing or would be riot within the country,
e) to
assist in rendering relief to natural calamity or epidemic victims,
f) to
rescue any citizen or else from hostage captivity or in the event of occurrence
of heinous and serious crimes or unrest of grave nature or of anticipation,
g) to guard border of the country,
h) to assist under the Nepalese Army in
condition of ingression,
i) to
protect public vital installations, infrastructures and other facilities
assigned by the Government of Nepal,
j) to
protect the personalities and public vital installations, institutes and other
facilities considered to be given protection by the Govt. of Nepal,
k) to perform tasks assigned as per this act
and under its regulations or in accordance to other prevalent laws,
l) to
perform other tasks assigned from time to time by the Govt. of Nepal.
*
Source: Armed Police Act 2058
APF has been doing campaign of anti
women trafficking awareness programs at borderlines particularly public points
of exit entry used for thoroughfares. In this regard seven widely spoken local
languages of Nepalese, Tharu, Tamang, Bhojpuri, Maithili, Hindi, and Baitadi audio
recordings are played aloud. The audio asks the passersby whether they know the
companion to which destination and where do they travel to. Imposters in guise
of husband or guardians lying the law enforcement agencies at the border make
their way to brothels. Upon encounter with officials they are requested to
speak the truth for their own safety. This way girls heading for unknown
fortune are saved and APF is there always with the public for their security.
There
is a non government organization named Maiti Nepal that works at Nepal India
border lines at different points rescuing girls getting trafficked to India. It
has rescued more than hundreds of girls and women from getting sold. According
to the data of Maiti Nepal, 200,000 Nepalsese girls are forced to prostitution
in India. The Feminist Daily News Wire states every year 5,000 to 7,000
Nepalese women and girls are taken to Indian brothels. Total estimation is
around 150,000 Nepalese women victims of abominable flesh trade (New Tactics,
2012).
The then Minister for Home Affairs
in the year 2010 remained effortful in improving the law and order situation in
the country by introducing special security program. With the implementation of
that program, the country’s security situation improved considerably. Focus of the
special security program was on trans-border security, activities of the armed
groups in different parts of the country and the ongoing Tibetan protests in
the capital (Gorkhapatra, 2012).
Home
Secretary level talks between India and Nepal on 31 October 2008, reviewed the
security and management of the porous India-Nepal border. The 16 member
Nepalese delegation was led by Home Secretary and the Indian team by Union Home
Secretary. The discussion was centered on effective cooperation, combating
terrorism, insurgent groups, circulation of Fake Indian Currency Notes (FICN)
and sharing information (VK, 2008).
The Indian government has decided to
depute Jammu and Kashmir Police along Sashatra Seema Bal (SSB) to plug Nepal
routes used by Kashmiri militants to re-enter the valley using Indian
government's new surrender policy as a cover. The J and
K Police deployment could be of Spotters, the former militants to nab youths attempting
to enter India through Nepal border after the state government announced
Rehabilitation Policy in 2010. Former militants' crossing over to
Pakistan-occupied Kashmir (PoK) between 1989 and 2009 would be considered for
safe return under that special policy. However there were some cases found in
the past few months in which former militants holed in PoK entering into the
Valley through Nepal route. Later they claimed having returned for the Rehabilitation
Policy 2010. Some of the youths were also found to be re-cycled into militancy (Agencies, 2012).
There
used to be frequent Nepal and India bilateral talks on issues of smuggling,
trafficking of narcotic drugs, women and girls, arms and ammunition, border
encroachment, and strengthening of border security matters. In continuation of
the tradition a seven-member team led by Inspector General of APF held talks in
New Delhi (3-5 Dec2012) with officials of SSB. The SSB was represented by its
Chief the Director General (nepalnews.com 2012).
Smugglers and their associates or
middlemen bribe officials at customs or revenue offices to pass their transport
to and fro of the borders. Such illegal transactions are corruption and nothing
else. Corruption brings criminal networks together at different levels
(Transparency International 2008). In
context of Nepal a void in governance, weak border controls, corruption among
civil servants have facilitated networking of black market traders of
consumable items to phone SIM cards (Craig,
Finn, 2011). On several occasions Pakistani and Bangladeshi nationals were
apprehended in Nepal with large amount of fake Indian currency notes.
The
Inter-Service Intelligence (ISI) of Pakistan probably selected the plain land (Terai)
region of Nepal for FICN operations because of the following reasons:
- Unguarded and porous border
- Extreme poverty and under-development on both sides of the border
- High unemployment along the India-Nepal border areas
- The presence of criminal gangs in the borders and smuggling mafia. Besides the Terai is also a refuge for criminals from Bihar, Uttar Pradesh and West Bengal.
- A massive presence of ‘D company’ agents in the Terai who are patronized and funded by ISI (VK, 2008)
Uttar
Pradesh Chief Minister on 16 April 2012 demanded Special Policing from the
central government of India to check any anti-national activities along Nepal
border. He tried to justify it saying due to strict vigil on the country's
borders with Pakistan and Bangladesh, the possibility of anti-social and
terrorist activity along the Indo-Nepal border has heightened. He also asked
for establishing integrated check-posts and special police arrangements to
control anti-national activities across the borderline of 550 kms with Nepal
(Parsai, 2012).
Annually
government makes announcement through media banning fire crackers during the
days of Dashain and Dipawali holidays. Mere making announcements are not enough.
The best option could be on-the-spot fines. Traffic police in Nepal have
introduced alcohol testing with breathalyzer device and the output in exciting.
Night clubs like houses have their grievances due to policy of driving without
drinking made their customers refrain from alcohol leaving dwindled their
business. As a result, lot number of pubs and evening restaurants got padlocked.
Smuggled vehicles and encroachment of public land property is common in Nepal
side border. Politically affiliated thugs upon apprehension get released due to
their undue pressure to concern authorities. There are large number of
unreported cases of abductions and extortions along border line.
Nepal has anti-corruption integrity
promoting policies but their implementation is noteworthy. One of the
noticeable points is the ineffectiveness in cross-border control. It has become
a normal phenomenon of allegations of corruption to government officials at the
customs and immigrations (Global Integrity 2009b) (Craig, Finn, 2011). The
government has several anti-corruption measures of legal instruments and
institutional structures against corruption such as;
Anti-Corruption Agencies in Nepal ( List of
State-Level Anti-Corruption Agencies)
Anti-Corruption Agencies
|
Type
|
Major Focus |
Commission for
the Investigation of Abuse of Authority (CIAA)
|
Constitutional
body
|
Investigation
and prosecution of cases of corruption and improper conduct
|
National
Vigilance Centre (NVC)
|
Prime Minister’s
Office
|
Awareness raising
and corruption prevention
|
Special
Court
|
Judiciary
|
Adjudication
of corruption cases
|
Office of
Attorney General
|
Constitutional
|
Public prosecutor
|
Judicial Council
|
Constitutional
|
Combating
corruption in judiciary
|
Revenue
Investigation Department
|
Ministry of Finance
|
Detection of
revenue leakage
|
Independent
Review Committee
|
Committee under
Public Procurement Act
|
Corruption
related to public procurement over Rs30 million.
|
Central Arrear Collection Office
|
Financial
Comptroller/Ministry of Finance
|
Collection of government
dues and arrears
|
Parliamentary
Committees including Public Accounts Committee and State Affairs Committee
|
Parliament
|
Parliament
oversight agencies
|
Office of Auditor
General
|
Constitutional
|
Auditing of books
of accounts
|
Offices of
Regional Administrators (5 offices)
and Chief District Officers (75)
|
Ministry of Home
|
Handling regional
and district-level corruption cases remaining within the authorities
delegated by CIAA
|
Office of
Financial Comptroller
|
Ministry of
Finance
|
Government
budgetary control
|
Source:
(Nirola, 2008).
A thorough reorientation is needed
of administrative and political leaders to strengthen local governance. Then
locally required skill needs to be imparted to people. Power needs to be
devolved so that there is a strengthening of local governance (POLSAN, 2001).
District level offices of Chief District Officer (CDO), Land Revenue, Court,
Customs and others of public contacts are main hubs of exploitation and
corruption.
There are debates about
decentralization of government, political units and administrative units but it
seems only corruption has been decentralized. It is clear until and unless people
are given opportunities of inclusion the much talked good governance would be
far apart. There are instances of delegating power to the politician's protégé
rather than to devolve favoring total nepotism. Politicians tend to be
non-cooperative to devolution of power. The party politics have influence in
all the government organs hindering normal day to day works and development.
Decentralization means taking power closest to the people (POLSAN, 2001).
Normally parliamentary democracy
guarantees the human and fundamental rights of the citizen. Though Nepal has got
democratic system in 2006 it is facing a number of problems of poor governance.
Nepal needs to address these problems with full humane understanding and
greater community participation programs. This could be attained only through
informed citizenry (Good Governance, 2012).
Civic engagement is taken for active
participation. The trust between the government and its people is appreciated.
Loss of trust can mean rejection of the people of their government (Parigi, Geeta, Rameesh, 2004, p.3).
Hello Sarkar a public call program
direct on air with ruling prime minister was initiated in the year 2012. The
concept is to win heart and mind of people and raise confidence in the
government and the new system of republic democracy. It listens to grievances and
grudges of public unheard. It shows the government interest in favor of common
people of the country (Pushkar, 2012).
Every
citizen of a state has born right to access information and in some countries
it is fundamental right also. The foremost aim of any government would be providing
information to its people to promote openness, make feel liberalism,
transparency and accountability in administration, side by side also to let
public participation in governance concerns. Nepal government has made it known
to its people to get information on basis of requirement from respective government
offices. Mandatory rules are made for the government offices to display their charter
outside to the public and they are implemented. A District Office can be cited
as a good example in district headquarters as they have put display boards of
their charter for public notice.
The
United Nations Development Program (UNDP 1999) sees government and governance
as being synonymous. It is important to note that government and governance are
inter related.
CONCLUSION
Nepalese Prime Minister announced
on 23 July 2012 the strategy and work plan to implement the United Nations
Convention against Corruption, which Nepal had ratified on February 23 last
year. On 9 December 2012 the PM at his office in Singha Durbar, Kathmandu
issued directives and instruction in this matter to all top ranking policy
level government bureaucrats to comply with the notice and information released
on behalf of the government. The PM on 29 August 2012 admitted his failures
accusing opposition parties. He did gloat over all his achievements of last one
year (Himalayan News Service, 2012).
For
good governance the requisite is that all the actors engage in process of
governance, adhere to well structured codes of conduct and their public affairs.
Nepal government had reviewed its Foreign Aid Policy of 2002 in February 2008.
Nepal Government has created
several anti-corruption measures of legal instruments and institutional
structures against corruption.
-
Corruption and poor governance are complementary to each
other and they worsen the economy and development of country.
- System
and government need to do more for more political commitment, strong legal
instruments, and effective enforcement mechanism.
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The International Journal's Research Journal of
Social Science, Singapore
Vol 3, No 5(2013), ISSN: 2251-1571
http://www.theinternationaljournal.org/ojs/index.php?journal=tij&page=article&op=view&path[]=2153
