On 27 March 2024, Niti Foundation convened a discussion on a Bill prepared by the Nepal Law Commission to amend the Anti-Corruption (Abolition) Act 2002 – National Vigilance Center (NVC) The amendments seek to empower the NVC by granting it the authority to investigate and impose remedies and punishments in relation to ‘improper conduct’. Although not explicitly stated, conflicts of interest are expected to fall under the definition of improper conduct, thus making the NVC a key actor for controlling conflicts of interest.
The interaction brought together current and retired representatives from the Prime Minister’s Office, the NVC, the Commission for the Investigation of Abuse of Authority (CIAA), and Nepal Law Commission, among others. The discussion focused on engaging key stakeholders to deepen understanding of the key issues contained within the Bill and gathering feedback for the Bill’s revision as part of the drafting process.
The discussion revolved around whether the proposed bill to establish a National Centre of Concern/Interest under the executive can effectively handle corruption, conflicts of interest, and improper actions—roles traditionally under the Commission for the Investigation of Abuse of Authority (CIAA), a constitutional body.
Some of the key issue raised during the discussion are summed up as the following: –
1. Authority & Effectiveness: Concerns that shifting oversight from a constitutional body (CIAA) to an executive-led institution may weaken independence and reduce effectiveness, especially in holding political actors accountable. Debate over whether improper actions (not just corruption) should fall under CIAA’s jurisdiction or a new executive body.
2. Conflict of Interest: Widely recognized as a major governance issue undermining transparency and rule of law. Suggested that Nepal adopt a separate law on conflicts of interest (as in Canada, New Zealand, Trinidad & Tobago), or expand the Good Governance Act to include it. Calls for conflict of interest to be treated as a preventive measure, not only after misconduct occurs.
3. Federal Context: Questions on whether the bill accommodates Nepal’s federal structure, ensuring roles for federal, provincial, and local governments. Corruption is prevalent at the local level, requiring provincial and local action plans alongside federal oversight.
4. Accountability & Independence: Risk that civil servants investigating political activities will face bias or pressure. Participants stressed the need for neutral leadership, procedural safeguards, and protection for officials working in oversight roles. The Prime Minister’s role: some argued direct supervision ensures accountability, others warned it centralizes too much power.
The participants proposed a few recommendations, which are: –
-Establish a clearer definition of corruption vs. improper action vs. conflict of interest.
-Consider a separate law on conflicts of interest, with reporting mechanisms to parliament.
-Ensure parliamentary oversight so reports are not confined to the Prime Minister’s Office.
-Strengthen procedural independence of any new body, with safeguards for staff.
-Align laws with Nepal’s federal structure, ensuring local and provincial governments prepare corruption prevention action plans.
-Promote preventive and promotive roles (training, audits, compliance checks) alongside punitive measures.
There is consensus that Nepal needs stronger mechanisms to address corruption, improper actions, and conflicts of interest, but there were debates on whether shifting responsibilities from the CIAA to an executive-led National Centre will improve governance or weaken oversight. The discussion also focused on several critical issues, including the effectiveness of categorizing conflicts of interest as ‘improper conduct’ and the role of the NVC in relation to other state institutions involved in tackling corruption, such as the CIAA, the National Investigation Department, the Department of Money Laundering Investigation, and the Department of Revenue Investigation. Furthermore, participants explored potential jurisdictional overlaps introduced by the new Bill, the independence of the NVC as an executive-established body, and its role within the federal system, particularly regarding its role in relation to provincial and local governments. Thus, many stress the need for clear laws, independent structures, federal alignment, and parliamentary accountability to make the system effective.
