Annual Progress Report for the 8th AGM

Respected President and members of TIN,

I would like to welcome you to the 8th Annual General Meeting (AGM) of Transparency International Nepal (TIN) being held today on 31st August 2003. It is a great honor indeed to have you all here. Your presence today and your support throughout these years have been crucial to the anti-corruption movement we have initiated.

As we all know, TIN since its inception in 1996, has been working for corruption control through advocacy of greater accountability and transparency. In the last five years it has worked steadily towards the lofty goal of raising public awareness, enhancing integrity, conducting research, mobilizing media and strengthening its institutional capacity. During this period, specific programs were developed and implemented with the assistance of Swiss Agency for Development and Cooperation (SDC), The Asia Foundation (TAF) and the Embassy of Finland, Kathmandu.

In the year 2002/03, TIN received financial supports from SDC and Embassy of Finland to conduct its anti-corruption programs. Lately, USAID Kathmandu has agreed to provide financial support in developing a Transparency Index of government ministries and departments.

It is my pleasure to present the details of the programs implemented in 2002/03 to the respected members present here today. But before the glimpse of the programs, I would like to submit you a brief update about the national context.

The year 2002/03 was a landmark year on the anti-corruption front considering the initiatives taken at the national level. Three new Acts - Anti Corruption Act 2002, Special Court Act 2002 and Amendment to Commission for the Investigation of Abuse of Authority (CIAA) Act 2002 - were passed by the Parliament, providing CIAA the needed legal frameworks to prosecute the corrupt. The new provisions allows CIAA to order seizure of passports, check bank accounts, put property on hold, raid offices and residences, and arrest the suspect in corruption cases, including even the members of parliament or a Prime Minister.

Armed with new powers, high level politicians, including three former ministers, were prosecuted by the CIAA for their involvement in corruption. CIAA also initiated action on a prioritized list of 40 individual - senior politicians and bureaucrats- based on the report of the Property Probe Commission, which had examined property of around 30,000 public officials. During the year, it prosecuted around 30 high-level government employees, police officials and even business sector people. As per the new Act, corruption cases were taken to the newly established Special Court where CIAA achieved significant success compared to the past.

Impeachment Act 2002 was passed by the Parliament with the view to remove immunity the constitutional appointees and the judges had enjoyed till then. The act however has not been put to test. Act related to Political organizations or Political parties was passed in 2002 aiming to set guidelines for operating political parties, financing them and mobilizing them. However the clauses related to auditing of party funds and fine for breach of the act leaves much to be desired. Public Services Ordinance, 2002 was issued and Seven Mobile Supervision Teams (Daudaha Tolis) set up in five Regional Development Centers, to take action in cases of corruption, fraud, mis-governance and illegal dealing in various government bodies. The powerful and action oriented bodies were in operation till the expiry of the ordinance due to lack of political and bureaucratic support in May 2003. National Vigilance Centre was established in early 2003 to undertake preventive measures to avoid corruption, irregularities and red tapeism in governance. The center has recently been entrusted to implement government's newly drafted anti-corruption strategy.

The emphasis on good governance and anti-corruption by recent governments has helped positively in building up the momentum against corruption in Nepal. This has come as a supplement to the new agenda of donors and the civil society organizations - better governance of which anti-corruption is a core component. To sum up, the pro-active actions of CIAA, report of the judicial commission on property probe and the consolidated legal frameworks have contributed towards generating great public hope for an end to the long prevailing impunity in Nepal, during 2002/03.

Activity report of TIN

Since corruption has hampered governance and development in Nepal, TIN has taken up a holistic approach - combined effort of civil society, private sector, donors and the state institutions- to fight corruption. A three-year holistic plan (2002/05) was prepared in 2002 with the objective of enhancing the National Integrity System in Nepal and agreement reached with SDC Kathmandu office to fund the plan. The plan mainly focuses on the following outputs:

1. Support to state institutions and political parties
2. Anti-corruption coalition and networks
3. Public education and awareness against corruption
4. Research and studies
5. Institution building

The following are the major activities that were conducted during 2002/03 under the same plan:

Output 1: Support to State Institutions and Political Parties

1. In order to reform governance, a set of recommendations was handed over to the Prime Minister recently. The recommendations contained principles of governance and code of conduct for persons responsible for governance, namely, ministers and civil servants. These principles and codes were prepared as bare minimum standards for a democratic government to follow. During the meeting, assurance was received from the Prime Minister to incorporate the contents into the code of conduct currently being prepared by HMG for public officials.
   
   
2. Support was provided to the anti graft body, CIAA, to assist organizational capacity and disseminate information. Investigation guidelines for prosecutors, a Manual on anti-corruption laws, and Court verdicts on corruption cases were complied and published. Publication of a quarterly newsletter of CIAA was also done. These publications were distributed widely. Annual Reports of CIAA for the period 1998-2001 were hosted at its website (www. akhtiyar.ntc.net) set-up by TIN. Support to CIAA was also provided through TIN Support Groups in Biratnagar, Pokhara, Janakpur and Birgunj by organizing interaction programs in 7 districts outside Kathmandu to interact with local people and heads of district based government officials. TIN also facilitated participation of two CIAA commissioners in the 11th International Anti-corruption Conference (IACC) held in Seoul to keep them oriented with the latest worldwide initiatives.
   
   
3. Realizing public procurement to be the most corruption prone area in Nepal, TIN provided 'Procurement Handbook- Prevention of Corruption in Procurement' to the Financial Comptroller General's Office. This was in response to a request received from the then Comptroller General. The handbook prepared by Dr Michael Wiehen of TI, the Integrity Pact Specialist, listed recommendations on various issues related to procurement. It is learnt that FCGO is now in the process of preparing a Public Procurement Act.
   
   
4. A workshop was organized jointly with the Judicial Council of the Supreme Court to seek avenues for reforming judicial administration. The CIAA, Supreme Court, TIN and the Bar Council each presented papers listing suggestions to establish a clean judicial administration. The papers also highlighted problems faced by the CIAA and the Courts in handling corruption cases. As an outcome of the workshop, understanding was reached between the CIAA and the Judicial Council of the Supreme Court to set up a mechanism to look into complains against the judicial employees.
   
   
5. TIN prepared an election appeal targeting political parties, Election Commission and the voters after the announcement of election to the Parliament, in 2002. The appeal framed norms for a clean and transparent election focusing on the candidate selection procedures, party funds, donations, and enforcement of election commission's guidelines. Political parties were approached for consideration of these norms during the distribution of tickets in election time. Support Groups in Biratnagar, Pokhara and Birgunj sensitized local politicians and voter about the appeal. The appeal was also disseminated widely through the media at the central as well as district level before the election was postponed indefinitely.

Output 2: Anti-corruption coalition and networks

6. To sensitize the private sector for ethical business practice, international business principles developed by TI was translated into Nepali and circulated for necessary discussions during a meeting hosted by TIN. Participants of the meet included CIAA, MAN and FNCCI representatives. Consequently, a proposal on business ethics was received from the FNCCI representative. The proposed draft has been distributed to the members of Private sector reform sub-committee of TIN and will also be discussed in the Corporate Ethics Forum of FNCCI.
   
   
7. Coalition work with activist NGOs like Sishnupani Nepal and Sarvanam Natya Sammuha was initiated to conduct anti corruption programs among students and the common-man. Satire was used as a medium to convey messages against corruption in shows organised by Sishnupani Nepal in three schools in Kathmandu. Students found the satirical humor presented by Sishnupani Nepal a catchy medium of knowing about corruption.. Similarly Sarbanam Natya Samuha and TIN are putting final touches to a street drama script. Street dramas and street seminars being planned in 10 districts and to be performed by Sarbanam will reach the common man who can never be a part of the usual seminars
   
   
8. To expand TIN's base at the district level two Support Groups were established in Bharatpur and Butwal. Dr Leela Subedi chairs the Bharatpur Group and Dr. Manohar Shrestha the Butwal Group. Token financial supports were provided to all the groups to carry out indigenous district based anti-corruption programs. During the year, Support Groups became the focal point of the district based anti corruption activities. They hosted interactions for the CIAA in seven districts. Biratnagar group organized street dramas and street rallies. Pokhara Group organized radio talk programs, school and college lectures/essay competitions, and interactions. Butwal Group organized interaction on the Integrity Pact. Janakpur and Birgunj Groups also conducted regular programs.

Output 3: Public education

9. To mobilize the public by creating awareness about the ill effects of corruption, TV and radio spots were broadcast at least once a week from Nepal TV and Radio Nepal. To lend support to TIN's efforts, substantial air times were provided as bonus by these organizations.. The messages aired have, among other things, appealed the people to go on hunger strike against bribery, report corruption to CIAA, and socially boycott the corrupt with the aim of bringing about governance and social reforms. Based on public reaction, these messages been the most visible activity of TIN.
   
   
10. Contemporary issues of national concern and media highlights on corruption were broadcast jointly with the Kathmandu based community radio station 'Sagarmatha' in the Aachar Bichar program, every week. Views of the key decision-makers, intellectuals, social activists and prominent people were aired for the benefit of the listeners. Public grievances related to financial irregularities and governance were also provided with an outlet in the program.
    
    
11. To disseminate information widely, quarterly newsletters in Nepali and English with stories of good initiatives, corruption and international events were published and distributed to the government agencies, NGOs, donors and TI chapters worldwide. A new web-site of TIN www.tinepal.org was launched with updated information and links to all the related sites. Last year the site had around 2000 visitors. Regular press releases and publications were also used to compliment TIN's public education program, making it the most effective people-mobilizing tool.

Output 4: Research and studies

12. Under TI coordination, a South Asian survey was conducted in 3070 households in Nepal in partnership with ORG MARG Nepal. The results stated police and judiciary as the most corrupt sectors in South Asia. The chief Justice of the Supreme Court was briefed about the results and later a workshop on 'Clean judicial administration' was organised jointly with the Supreme Court. International survey results on corruption perception index (CPI), the bribe payers' index (BPI) and the global corruption barometer (GCB) were disseminated through the Nepalese media highlighting international perception on corruption.
    
    
13. A data based study on corruption news published in 6 national dailies was prepared and provided to the Federation of Nepalese Journalists as findings. It highlighted lack of investigation, rare follow up of breaking news and fear of reporting as the main problems in corruption reporting by journalists.
    
    
14. Realizing the importance of integrity oriented education a status study on the moral education at the secondary school level was initiated. The study expected to examine the moral education curriculum prescribed by HMG and compare its application at the school level. This study was initiated after talks with the Director of Curriculum Development Center with the aim of prescribing a course content on integrity, transparency and anti-corruption for the secondary school level.
    
    
15. To orient the Nepali readers about the internationally acclaimed national integrity system approach towards corruption control, TI Source Book 2002, authored by Jeremy Pope, was translated, published and distributed. The book is in great demand and many students, activists, academicians and researchers have found the Nepali version valuable for their uses.
    
    
16. Seven research fellowships were provided to the Federation of Nepalese Journalists to publish articles on corruption issues. FNJ awarded the fellowships to prominent journalists involved in national dailies and weeklies. Most stories were published by the fellowship awardees in newspapers, lending support to the on-going struggle against corruption.

Output 5: Institutional strengthening

17. In order to identify new reform oriented programs, four sub-committees were formed involving TIN members. Mr. Shreebhadra Sharma, Mr Ramesh Nath Dhungel, Mr. Sunil Adkhikary and Mr. Bishnu Pratap Shah were nominated as the coordinators of the sub committees on political and electoral reforms, private-sector reforms, TIN actions and administrative reforms, respectively. The Administrative Reform Sub Committee's recommendations have been handed over to the Prime Minister, recently. These recommendations included three papers- governance principles, code of conduct for ministers and code of conduct for civil servants.
    
    
18. During the year, TIN membership was strengthened with the induction of three prominent figures as members. Former chief election commissioner Bishnu Pratap Shah, UN civil sevants Arjun Keshari Updhaya and independent consultant Prayag Dutta Tiwari have brought in credibility and experience to TIN. The new members were also nominated as members to the various sub committees and have actively contributed in their meetings.
    
    
19. To implement plans and programs of the institution in a more professional way, part-time consultants - newsletter editor, web designer and media expert - were engaged on a part time basis. Also the capacity of the regular staff in TIN was further strengthened through training on the core competency areas - anti-corruption, monitoring, project management, finance, data management, and report writing.
    
    
20. To share national and international experiences, two TIN delegations participated in the TI AGMs held in Morocco (2002) and Seoul (2003). Dr Devendra Raj Panday retired from the Board of TI in the AGM held at Morocco. During these AGMs, TIN representatives voted to elect members to the TI Board. TIN members also participated in the International Anti-Corruption Conference (IACC), largest gathering of anti-corruption activists from all over the world. Presentations on the Integrity Pact status in Nepal and OECD convention on anti-bribery were also made during these visits by the delegates.
    
    
21. With the aim of becoming self-reliant in future, financial sustainability of TIN was consolidated through savings made on the overhead amounts provided by SDC and Embassy of Finland. This has helped in substantial savings.

These are the brief glimpses of our activities that were executed during the year. However, some of TIN's programs targeted toward the political parties, general elections, local bodies and central government ministries could not be completed due to the dramatic turn of events that took place in Nepal at the same time. Elections were postponed indefinitely hence a campaign for lobbying political parties and their candidates and could not be pursued. Local and central governments, which were without elected leaders, looked a bit indecisive and uninspired to initiates new moves. Therefore, Integrity Pact at central and local level could not be initiated. TIN journalism Award was discontinued and fellowships to investigative journalists was started. Work related to donor transparency was postponed for 2003/04 considering the changed scenario.

As I have stated earlier, in the year 2003, another donor- the Embassy of Finland - agreed to provide financial support to TIN to conduct following programs:

• Study of government actions on the reports of two constitutional bodies
• Study of procurement systems in two public sector units
• Consolidation of TIN Support Groups
• Establishment of an Endowment fund

Activities have already been initiated under these programs and I would like to update you on that as well:

Government's efforts to implement the recommendations of the Auditor General and the Public Service Commission was studied jointly with Center for Policy Reform. This was done to verify the widely held public perception that the reports of the constitutional do not get adequate respect of the government and this contributes to an unaccountable system. The preliminary findings of the study present a bleak picture - recommendations are not taken seriously within the government machinery. TIN will present the findings to the government in order to generate more support towards these constitutional bodies

Support Groups have been provided financial support to conduct district based activities. A Small Endowment fund has been set up to help consolidate TIN's long-term sustainability. Pubic sector study will be initiated in the near future.

Let me also assure you that we have taken into our plan suggestions made by the members in the last AGM. Issues raised by members on the need of working for political and electoral reforms, greater cooperation with CIAA, legality of the Support Groups, school level activity, and media mobilization have been TIN's focus in 2002/03.

I would also like to present to you today, in short, our main activities for 2003/04. They are

1. Lobby HMG for governance reform and adoption of code of conduct for ministers
2. Work with CIAA, National Vigilance Center and Judicial Council for new laws and dissemination of information.
3. Work with major Political parties for ethical practice in party organization and during elections
4. Frame business principles countering bribery for the private sector jointly with FNCCI
5. Organize street dramas in 10 districts with Sarvanam Natya Sammuha
6. Sign Integrity pledges with Kirtipur, Thimi or Banepa municipalitiy
7. Form four new Supports Groups in Bhairahawa, Dhangadi, Ilam and Surkhet and assist six existing groups to conduct district based programs.
8. Broadcast awareness raising messages from Radio Nepal, NTV and Sagarmatha
9. Provide fellowships to FNJ to publish investigative articles in newspapers
10. Publish TIN newsletters in English and Nepali and update TIN website
11. Hold awareness shows jointly with Sishnupani Nepal in higher secondary schools
12. Prepare a course content on integrity for secondary school
13. Conduct study of laws of enforcement agencies.
14. Survey land revenue, district administration, banks, customs, police, court etc
15. Study anti-corruption policies of major donors
16. Study Public Sector Units
17. Participate in international seminars organized by TI.

Executive Committee (EC) and membership

Now to update you about the EC: Mr. Kul Shekhar Sharma, (President), Mr. Shree Bhadra Sharma (Chair, Advisory Council), Mr. Ramesh Nath Dhungel (Vice-President), Mr. Biswambher Man Singh Pradhan (Secretary General), Mr. Sunil Adhikary (Treasurer), Dr. Devendra Raj Panday, Dr. Harka Gurung, Dr. Meena Acharya and Mr. Tara Nath Dahal (Institutional Member) are the current EC members.

Mr. Kul Shekhar Sharma, Mr. Ramesh Dhungel, Mr Sunil Adhikary and Mr. Tara Nath Dahal were elected to the EC for a three-year term at the 7th Annual General Meeting (AGM) held on September 29, 2002. .

Mr. Kul Shekhar Sharma, Mr. Ramesh Dhungel and Mr. Sunil Adhikary were elected President, Vice President and Treasurer respectively during the 111th EC meeting held on September 29, 2001.

The 115th EC meeting held on March 19, 2003 granted TIN memberships to Mr. Bishnu Pratap Shah, Mr. Arjun Keshari Updhaya and Mr. Prayag Dutta Tewari.

Three-year EC tenures of Mr. Biswambher Pradhan and Dr Devendra Raj Panday expires at the 8th AGM (31 August 2003). Elections for two seats in the executive Committee will be held in this AGM.

The EC met 6 times between the 7th and the 8th AGM.

At the end, let me thank you all once again for being present today at the AGM. TIN holds a very high opinion of your support for the anti-corruption movement.

Thank you.

Biswambher Man Singh Pradhan
Secretary General
TIN, 31 August 2003