By Nepal News Correspondent
December 31, 2005
KATHMANDU: The office of the Auditor General (OAG) has pointed out that the Royal Nepalese Army (RNA) has been using its Welfare Fund haphazardly, according to reports.
The Auditor General has found a number of ‘flaws’ in the use of the welfare fund under different heads like providing health service, education, housing and other facilities to the families of the ex-army men.
Besides, the fund, which includes money from soldiers who serve under UN missions at different times, lacks ‘standard and systematic auditing’, the OAG said.
Responding to a Supreme Court order on the audit of the Welfare Fund of the RNA, the OAG pointed out such irregularities.
Acting upon a writ petition filed by Ambar Bahadur Thapamagar, chairman of Ex-Army Welfare Council, four years ago, the court had directed the OAG to produce its audit report on the use of the Welfare Fund, according to reports.
The OAG said that it has found many flaws regarding use of the fund under different heads while extending facilities to ex-army families.
Referring to deployment of army men in East Timor and Yugoslavia, the audit report states that the RNA did not keep any record of income and expenditure while deploying the RNA personnel.
The report also shows that the RNA has been operating several cafeterias and petrol pumps in the country, but the expenses incurred on them were not based on bills and receipts and a proper accounting system for over two decades. The report states that the amount has been used haphazardly without collecting bills and other supporting documents.
The audit has found that the Welfare Fund has Rs 7.26 billion in its bank accounts and it got Rs 490 million as interest last year and Rs 443 million this year. The audit report shows that RNA got 14.85 percent less interest than last year.
The report recommends the RNA to form rules to spend the Welfare Fund on different heads and says the Chief of the Army Staff-led Management Committee must use the Welfare Fund in an appropriate manner.
The audit report states that the Army Officers Wives’ Association had been getting Rs 10 million annually from the Welfare Fund, but it is not clear how the money is spent, why and on whom.