Source: Cartoonist Club of Nepal Transparency International (TI) Nepal Annual Progress Report (APR) 2016/17 (वाषक गत तवेदन २०७३/०७४) Annual Progress Report (APR) 2073/74 (2016/17) 1 TI NEPAL EXECUTIVE COMMITTEE (EC) 2016-2018 (कायसमत) SHREE HARI ARYAL (Senior Advocate) PRESIDENT RAM DAYAL RAKESH PADMINI PRADHANANGA RAM KRISHNA MANANDHAR VICE PRESIDENT SECRETARY GENERAL TREASURER ADITYA MAN SHRESTHA LEELA P SAPKOTA SOM RAJ SIGDEL SABITA BHANDARI BARAL SURENDRA BIR MALAKAR MEMBER MEMBER MEMBER MEMBER INST. MEMBER ----- IN ATTENDANCE ASHISH THAPA EXECUTIVE DIRECTOR (TI-Nepal 22nd Annual General Meeting (AGM) approved Annual Progress Report 2016/17 dated 20 September 2017) Annual Progress Report (APR) 2073/74 (2016/17) 2 TI-Nepal General Members Excluding EC members): Mr. Bharat Bahadur Thapa (Former President), Member Mr. Bishnu Bahadur K.C. (Former President), Member Mr. Damodar Prasad Gautam (Former President), Member Dr. Devendra Raj Panday (Former President), Member Ms. Ambica Shrestha (Former President), Member Mr. Kedar Bhakta Mathema (Former Advisory Council Chair), Member Ms. Geeta Keshary (Former Vice President), Member Mr. Mahadev Prasad Yadav (Former Vice President), Member Mr. Ananda Raj Mulmi (Former Vice President), Member Mr. Sarbagya Ratna Tuladhar (Former Vice President), Member Mr. Ramesh Nath Dhungel (Former Vice President), Member Mr. Mukunda Bahadur Pradhan (Former Secretary General, Treasurer), Member Mr. Krishna Prasad Bhandari (Former Secretary General), Member Mr. Komal Chitracar, (Former Secretary General, Treasurer),Member Mr. Bhim Bahadur Shrestha, (Former EC Member), Member Dr. Chintamani Yogi (Former EC Member), Member Mr. Sarachandra Wasti (Former EC Member), Member Mr. Khem Raj Regmi (Former EC Member), Member Dr. Sagar Raj Sharma (Former EC Member), Member Ms. Toya Gurung, (Former EC member), Member Dr. Biswa Keshar Maskay (Former EC member), Member Dr. Meena Acharya, (Former EC member), Member Dr. Posh Raj Pandey (Former EC member), Member Mr. Deep Kumar Upadhaya, Member Mr. Mukunda Sharma Poudyal, Member Mr. Jagat Man Shakya, Member Mr. Varun Prasad Shrestha, Member Mr. Arjun Keshari Upadhyay, Member Dr. Rewat Bahadur Karki, Member Mr. Surya Nath Upadhaya, Member Mr. Birendra Prasad Mishra, Member Mr. Purushottam Baskota, Member Mr. Banshidhar Ghimire, Member Dr. Prem Raj Panta, Member Mr. Pawan Kumar Ojha, Member Dr. Kanak Bikram Thapa, Member Mr. Buddhi Narayan Shrestha, Member Dr. Suresh Raj Chalise, Member Mr. Keshav Prasad Acharya, Member Dr. Bijaya K.C, Member Mr. Kiran Thapa, Member Dr. Anusuya Joshi, Member Mr. Madan Krishna Sharma, Member Dr. Ishwar Prasad Upadhyaya, Member Mr. Jayram Singh Bohara, Member Mr. Bhojaraj Pokhrel, Member Mr. Prakash A Raj, Member Annual Progress Report (APR) 2073/74 (2016/17) 3 TABLE OF CONTENTS Country context TI-Nepal Executive Committee after the 21st AGM Secretariat and Project Implementation Executive Committee Advocacy and Rapid Reaction Data through Research, studies and papers National and district level consultations Elected representatives and integrity Engagements with Business sector and civil society Marking Establishment and Intl. Anti-corruption days Redressing Public grievances through interface Mobilizing Youth and Women Awareness raising and sensitizations through media Visits and Observations Capacity building of Partners and Officers International Representation Internal Monitoring & Evaluation Conclusion and Way forward TI-Nepal IPERR Contact Offices in 14 districts Affiliated Organizations Annual Progress Report (APR) 2073/74 (2016/17) 4 Glossary of Terms AGM Annual General Meeting ALAC Advocacy and Legal Advice Centre AMM Annual Membership Meeting AO Affiliated Organization B.S. Bikram Sambat (Nepali Calendar) BNIN Building National Integrity in Nepal CDO Chief District Officer CIAA Commission for the Investigation of Abuse of Authority CLPIU Central Level Project Implementation Unit CPI Corruption Perception Index DAO District Administration Office DCC District Coordination Committee DEO District Education Office DLPIU District Level Project Implementation Unit EC Executive Committee ED Executive Director EU European Union GG Good Governance GoN Government of Nepal IEC Information, Education, and Communication IP Integrity Pact IPERR Integrity in Post Earthquake Reconstruction and Rehabilitation M&E Monitoring & Evaluation MoFALD Ministry of Federal Affairs and Local Development MoU Memorandum of Understanding MP Member of Parliament MSC Management Sub Committee NGO Non-Government Organization NI National Integrity NIS National Integrity System NRA National Reconstruction Authority NVC National Vigilance Centre PC Programme Coordinator RNE Royal Norwegian Embassy RTI Right to Information SC Supreme Court SWC Social Welfare Council TI Transparency International TI-Nepal Transparency International Nepal ToR Terms of Reference UNCAC United Nations Convention Against Corruption VDC Village Development Committee Annual Progress Report (APR) 2073/74 (2016/17) 5 Country context National Integrity System (NIS) Corruption is a key obstacle to the socio-economic development of Nepal and its people. Nepal, a country with urgent development needs, has been overwhelmed by an unstable political environment over the past two decades. It is on this background that corrupt practices have continued to flourish in areas of public and private life. The 2016 Corruption Perceptions Index (CPI) placed Nepal 131st among 176 countries with a score of 29 out of 100. In 2015, it ranked 130th among 168 countries with a score of 27 out of 100. This signifies the existence of pervasive corruption. The TI visualized generic pillars of integrity - with foundations of politics, society, economy and culture The National integrity System of Nepal demonstrated three sound characteristics of strength in 2017. Because of these features, the country could really enter into an era of implementation of the republican constitution. Elected local governments are in full shape in six provinces while province number 2 is in final preparation for the third phase- local polls. There is consensus among all political parties (represented in the parliament) including those which agitated against some provisions of constitution during the past two years, for holding provincial elections in 7 provinces and polls for federal parliament within the constitutional deadline of January 21, 2018. Nepal also witnessed optimism in economy generated by comparatively more stability in government and politics accompanied by less labor-unrest and more energy-supply during the year. The 7.2 % growth last year in the economy boosted investment particularly in infrastructure supporting sectors like cement, iron, hotel, bank, insurance, hydro-electricity and tourism. Some milestone legislative measures – Criminal Code Bill 2073 (amendment to Civil Code 1964), Public Procurement Act 2073, Local level Election Act 2073, Election of MPs 2073, Election of MLAs 2073 and Annual Progress Report (APR) 2073/74 (2016/17) 6 Labor Bill 2074, among others, were endorsed by the Parliament. Similarly, Bills related to medical education, local level, judicial council, social behavior etc are being deliberated at the Parliament. These legal frameworks increase the hope towards curbing impunity, criminalizing corruption and improving the accountability mechanism. On the backdrop of some success in the legal front, failures of NIS at the grass-root level is felt by earthquake survivors and flood victims. The pace of relief and reconstruction has been extremely slow. Victims of the decade long insurgency are ignored and overlooked by those at the helm of governance. Big promises, small delivery- the state Despite the much proclaimed policy of zero tolerance to corruption, the 'anti-corruption' agenda remained in the backyard of most of the NIS-pillars. Political parties and government did not take any initiative to end this trend. Their dependence on power sharing and remaining close to the resources of the government abets corruption. Neither the ruling parties nor the opposition raised a strong voice on major issues reported by the media - the Nepal Oil Corporation land purchase deal, affiliation of medical colleges, gold smuggling, Ncell capital gain tax, Tax Settlement Commission embezzlement etc. Despite much public support, no assurance was made by the political leaders to look into the issues raised by Dr Govinda KC for the much needed reforms in the medical education sector. The anti-corruption body - Commission for the Investigation of Abuse of Authority – had to take a defensive position because of a court case and an impeachment-motion against its then chief commissioner. Following the SC-verdict, on the annulment of appointment of Lok Man Singh Karki as Chief Commissioner, CIAA faces a challenge to clear its public image. Its institutional aura was also damaged by the impeachment motion at the parliament. The then CIAA-chief was accused of running parallel government, misusing power and threatening bureaucrats and politicians. CIAA is now pursuing Annual Progress Report (APR) 2073/74 (2016/17) 7 a strategy of restoring its image and undertaking its routine tasks – promotive (awareness), preventive (reforms) and punitive (action-oriented measures). Similarly, another anti-corruption body –National Vigilance Centre – also remained virtually non- effective in the absence of adequate support from the PM. It could neither produce its annual report in time nor could it draw the attention of Prime Minster