Annual Progress Report for the 9th AGM
Fiscal year 2003/04 (2060/61 BS)

TIN feels highly honored to welcome you all at the 9th Annual General Meeting of Transparency International Nepal. We hope to have, like in previous meetings, a free and open discussion, which could guide all of us in the fight against the cancerous crime – corruption. This is an occasion in which the top body of TIN evaluates its performance in the past year and charts its path for the next year. The convention followed by TIN over the years has motivated it to practice values of participation, democratization, and transparency. Your presence and participation today in this AGM has encouraged us very much and your deliberations here would definitely steer TIN better in the year ahead

1.0 Context

To begin with, the year 2003/04 was not conducive for governance-related works. Political uncertainty and unrest along with conflict, which continued during the whole period like in previous years, did not allow good governance a comfortable passage. It might be appropriate at this moment to reflect upon the prevailing state of the society and the nation in which TIN has been launching its various activities.

• growing subversion and disorder,
• lack of consensus among the political parties about the ways of solving present problems,
• growing disenchantment of the people with the performance of government leaders,
• deceleration in the pace of development,
• increased incidents of human rights violations,
• difficulties on the part of the government to exercise effective control in different parts of the country,
• bleak chances of local and general elections taking place,
• continued armed conflict between the security forces and rebels, and
• the worsening economic and security situation.

All of these factors have contributed towards an increase in conflict, violence, deaths, closures, protest and rallies throughout the year, demanding urgent attention of the government and the people. This has diverted the attention of government and other institutions from governance and anti-corruption activities to conflict resolution and peace building. In spite of this, public awareness about a need to stem corruption and public support for the activities of CIAA, the main state authority for controlling corruption, has increased tremendously.

1.1 Anti-corruption initiatives in the country

Despite of the prevalence of such adverse situation in the country during 2003/04, the state and civil society organizations concerned have vigorously pursued their efforts against corruption.

The top constitutional anti-corruption body- Commission for Investigation of Abuse of Authority- (CIAA) appears confident and consistent in investigating the corrupt including highly placed politicians. It maintained the drive of filing cases against high officials of the government including ministers and top law enforcement officers and showed that from now on no one found involved in corruption, even though in high places, can escape punishment. Statistics show: Special Court dispensed more than 130 cases this year related to corruption out of which CIAA achieved a success rate of around 82%. The figure has raised hopes and indicates the level of seriousness the new court gives to the white-collar crime. This will contribute positively to the CIAA strategic plans to lower corruption within the next three years.

Also some measures taken by government bodies proved helpful in nourishing the fight against the vice. The anti-corruption strategy and action plan, formulated by the Government, is currently being implemented under supervision of the Chief Secretary of HMG. For greater accountability and transparency in government work, 48 government departments, as a result of CIAA initiatives, have prepared their Working Procedure Manuals and announced their determination to implement them. HMG and civil society actors concluded the drafts of different anti-corruption acts like the Fiscal Transparency Act, Anti-Money laundering Act, Whistleblowers Act and Public Procurement Act to strengthen anti-corruption legal framework. UN Convention against Corruption was signed by Nepal paving way for future possibilities in fighting corruption and illegal foreign deposits, developing mutual legal assistance with other countries and bringing business sector under corruption investigation.

The civil society appears to be increasingly aware of its role in preparing the mind-set of the citizens against corruption. The wide support TIN has received from the civil society over time stands witness to the fact that it can play its role effectively. Joint anti-corruption programs with different NGOs and the composition of TIN Support Groups countrywide have well demonstrated the wide representation of almost all strata of society in the anti-corruption drive. This could prove to be a very useful resource for countering corruption trend in the long run.

Donors also initiated various anti-corruption projects this year. USAID/Nepal initiated a three-year anti-corruption project that will focus on rule of law and building corruption coalition. DANIDA / DFID jointly agreed to assist CIAA in their ten district corruption-control pilot project. Capacity of CIAA offices in those districts will be strengthened under this program. Under DFID support, FNCCI started the task of drafting code of conduct for the business sector to enhance integrity in the business sector.

2.0 Highlight of TIN programs and activities

It is well known that corruption has compromised good governance and retarded social and economic development, eroded public services and undermined democratic values in the country.

To fight the evil of corruption, TIN, as we all know, has been working for the promotion of transparency, accountability and integrity in Nepal. To achieve this, it has adopted a working modality of raising public awareness against the ill-effects of corruption, enhancing integrity in all walks of life, building coalition with like-minded institutions, generating empirical data for public information and mobilizing media for public sensitization.

The recent programmes of TIN have aimed at supporting State Institutions and Political Parities in designing and implementing laws and guidelines, consolidating anti-corruption coalition and networks, carrying out public education and awareness against corruption; undertaking relevant research and studies; pursuing increased donor transparency and strengthening its own institutional capacity. Details of these programs are mentioned below, along with their basic objective:

• TIN leadership is working out a comprehensive strategy to control corruption with a holistic approach. Under this approach, a comprehensive strategy targeting political, administrative and business sector reforms was broadly laid out. A set of recommendations regarding principles of good governance and codes of conduct for ministers and civil servants was prepared as part of the above strategy and presented to the Prime Minister to assist government in its professed anti-corruption strategy. The objective: to make the top officials more integrity conscious.
  
  Also under preparation, is a plan for reforms in political parties with a view to, among others, bringing about greater transparency in their financial matters.
  
  
• The ethical commitments of parliamentary political parties - Nepali Congress, Unified Marxist Leninist, Samyukta Janamorcha, Rastriya Prajatantra Party, Nepal Sadbhavana Party, Nepal Sadbhavana Party (A) and Nepali Congress (D) – towards a clean, transparent and corruption free politics is being studied on the basis of their policy documents. The objective: to make political parties conscious about their ethical responsibility in checking corruption.
  
  
• Government actions on the major recommendations of the Auditor General’s Office and Public Service Commission, the constitutional bodies, from 2054 to 2058 BS, were studied and the findings made public in a workshop. The reports were also made available to the constitutional bodies. The objective: to build up a situation for the compliance of the reports.
  
  
• TIN and Secretary of the Law Ministry discussed about working together for drafting new laws and reviewing old ones to make the existing Nepalese laws compatible with UN Convention. The objective: to update laws with international norms and assist the "HMG Task Force on UN Convention against corruption".
  
  
• Chief Secretary of HMG has agreed to involve TIN in reviewing progress in the implementation of ‘HMG anti-corruption strategy and action. The objective: to maintain a good follow-up in government work.
  
  
• National Vigilance Center was assisted in developing guidelines and indicators for selecting a government department/office with outstanding performance to combat corruption. The objective: to help develop appropriate reward mechanism for anti corruption work.
  
  
• A Work Procedure Manual on Development, Construction and General Works was published by TIN for CIAA in order to streamline construction malpractice and irregularities. The objective: to prepare a base for checking technically disguised or hidden corruption.
  
  
• CIAA newsletters with special focus on corruption cases were prepared, published and distributed. New TV and radio messages aimed at curtailing purchase and sale of stolen vehicles were prepared upon CIAA request and aired from NTV and FM. The objective: to provide people with regular information about the activities of the anti-graft body.
  
  
• Website was prepared for the government anti-corruption body, National Vigilance Center (NVC) to disseminate basic information about the new organization. A regional workshop was held by Pokhara Support Group with NVC in Pokhara to orient the Government district office bearers about its preventive role. The objective: to familiarize individuals and institutions with NVC.
  
  
• Street drama entitled Roop Anek Anek emphasizing anti-corruption theme was staged in public platforms and busy intersections of major cities in 10 districts amid great public interest, in partnership with Sarvanam Natya Samooha, the renowned theatre group and TIN Support Groups. The objective: to inform the common people about anti-corruption.
  
  
• TIN Business Principles was prepared and finalized based on feedback received from district FNCCI offices and TIN Support Groups and provided to the FNCCI Code of Conduct project for considerations in the final codes. The objective: to make private sector conscious of corruption and to encourage it to undertake anti-corruption measures in its own premises.
  
  
• Press meets were organized with CIAA and Federation of Nepalese Journalists participation to foster greater media support in CIAA work. Similarly a training workshop for print journalists was organized jointly with Nepal Press Institute to orient the reporters on CIAA's investigation and prosecution system for better news writings. The objective: to ensure cooperation from media persons in a professional manner.
  
  
• New Support groups were formed in Siddarthanagar and Kathmandu with the involvement of local people to expand TIN mission. To encourage gender balance in anti-corruption work, the Kathmandu group was constituted as an All Women Group comprising professional women. A Support Group Directive was also prepared to bring uniformity in the functioning of the Groups. Review and Planning of Support Groups’ activities was done with the participation of all seven TIN Support Groups. The objective: to prepare more and more people for Integrity approach for checking corruption. (See Annex –1 for details about Support Groups' programmes).
  
  
• Anti-corruption messages were broadcast from Radio Nepal and Nepal TV during prime time throughout the year to motivate and educate the general population against corruption. TIN's anti-corruption radio messages were also transmitted from FM stations in Biratnagar, Pokhara and Chitwan. The objective: to further strengthen anti-corruption signals to the public.
  
  
• The output of contemporary radio program 'Aachar Bichar', being broadcast from Radio Sagarmatha, and the content of quarterly TIN newsletters was modified with contribution from REMAC – Nepal, a forum of investigative anti-corruption mainstream journalists. The objective: to upgrade broadcasting on anti-corruption.
  
  
• Investigative fellowships were provided to journalists through Federation of Nepalese Journalists to dig out stories of irregularities and publish them for public education. The objective: to motivate journalists to dig out corruption stories.
  
  
• In partnership with Sishnupani Nepal, anti-corruption satire shows were performed amid great interest of the students in Kathmandu University, Tribhuvan University, Pokhara University, Purbanchal University and Teaching Hospital. The objective: to make educated youths conscious about the need for anti-corruption measures in entertaining manner and humorous style.
  
  
• Interaction, workshops, and discussions were organized jointly with partner NGOs- Forum for Sustainable development, Forum for Human Rights and Democracy, and Nepal Council for World Affairs on contemporary issues like UN Convention, corruption and human rights and CIAA performance respectively, in order to expand the anti-corruption institutional network. Numerous meetings were held with NGOs, donor representatives, foreign consultants, reporters, researchers, and business organizations to share and impart anti-corruption information. The objective: dissemination of anti-corruption experiences and exploration of ways to tackle the crime better.
  
  
• Public perception survey of six public service delivery organizations related to electricity, water, sanitation, telecom, district administration and vehicle registration was completed in Kathmandu. The objective: to determine the state of public services.
  
  
• Study of anti-corruption policies of major donors- USAID, JICA, SDC, DANIDA, FINNIDA and DFID was initiated. The objective: to familiarize Nepalis individuals and organizations about donors’ preventive mechanism.
  
  
• Saving was made on the Overhead Expenses provided by SDC and Endowment Fund contributed by Embassy of Finland. The objective: to assist future sustainability of TIN.
  
  
• Capacity enhancing training were provided to the staff on proposal writing, fund raising, conflict management, civil society and local governance, memos, minuting and letter writing and accounting practices. The objective: enhancing the human resource capacity in the institution.

2.1 Future TIN programs

To continue the anti-corruption campaign initiated, TIN has decided to implement the following programs and activities in the fiscal year 2004/05. Like in the past years, these programs and activities are being conducted through the support of our partner donor organizations – Swiss Agency for Development and Cooperation, Embassy of Finland and USAID/ Nepal. We express our sincere gratitude to them for their crucial and valuable support.

Targeting state institutions and political parties:

• Support to Law Ministry Task Force on UN Convention against corruption for follow-up works in Nepal.
• Monitor and review of progress on HMG anti-corruption strategy / action plan jointly with Cabinet Secretariat.
• Contribute to reforming and monitoring implementation of Working Manual of government departments with CIAA.
• Provide suggestions on political party reforms, party funding and election candidates to major political parties and monitor its effectiveness during the general election.

• Provide investigative fellowships to Federation of Nepalese Journalists for preparation and publication of reports.
• Involve Research and Media against Corruption in disseminating investigative information through radio and print medium.
• Organize public interactions involving CIAA and NVC for public grievances in and out of Kathmandu.
• Advocate Corporate Ethics Forum/FNCCI to incorporate TIN Business principles in Business Code of Conduct.
• Establish TIN Supports groups in Palpa, Surkhet, Dhangadi, Ilam and other feasible cities.
• Providing financial support to the existing 8 TIN Support groups to prepare and implement annual programmes.

Education-oriented:

• Broadcast radio spots from Radio Nepal and TV spots from NTV.
• Broadcast Aachar Bichar program from Radio Sagarmatha.
• Publish TIN quarterly newsletters in English and Nepali and updating website bimonthly.
• Work jointly with Sishnupani Nepal and Sarvanam Natya Samooha to conduct anti-corruption shows / dramas in Universities, Schools and public places.
• Organize workshops with partner NGOs / organizations on corruption related themes in and out of Kathmandu.

Research-oriented:

• Hold training workshop with Nepal Press Institute for FM programmers outside Kathmandu.
• Discuss main features of donors' – USAID, DFID, DANIDA, SDC, JICA and FINNIDA – anti-corruption policies.
• Study procurement systems in Royal Nepal Airlines Corporation and Nepal Electricity Authority.
• Prepare Transparency Index of HMG Ministries.

Institutional strengthening:

• Build up TIN’s Consolidated Savings Fund.
• Participate in TI AGM, TI regional meeting, international workshops and chapter visits.

3.0 Executive Committee

The current Executive Committee composition stands as follows:

Member Mr. Bishnu Pratap Shah was co-opted as EC member and elected Treasurer by the 120th EC meeting held on 21 April 2004 after the EC accepted the then Treasurer Mr. Sunil Adhikary's resignation.

Three-year EC tenure of Mr. Shree Bhadra Sharma, Dr. Harka Gurung and Dr. Meena Acharya expires at the 9th AGM and co-option of Bishnu Pratap Shah as EC member also expires at the 9th AGM. The EC met 9 times between 8th and 9th AGM. The 123rd EC meeting, keeping in view the ethnic and geographical factors, decided to grant TIN memberships to Mr. Santa Bahadur Rai, Mr. Ganesh Man Gurung and Mr. Ram Prakash Yadav.

4.0 Conclusion

Controlling corruption in Nepal is really a long-term task because the root causes of corruption are well entrenched into the fabric of our society. Various values such as materialistic thinking, excessive consumerism, nepotism, poverty, low salary, costly elections, state monopoly in public services, discretionary power, red tape, lack of accountability at political and civil service level, and judicial immunity have been breeding corruption over the years and there is no short-cut to eliminate these factors overnight. So the fight against corruption must continue for a long time and it has to be carried out in the mode of civil society working together with State institutions. For this, the prerequisites are democracy, political stability, peace, good governance, and propagation and inculcation of high moral values of integrity and simple living.

Thank you.

Mr. Biswambher Man Singh Pradhan
Secretary General

Annex –1

Support Groups have become the pillars of TIN’s countrywide anti-corruption drive and their activism is crucial in expanding TIN network. To further consolidate this network numerous programs were organized by the Groups in coordination with TIN, throughout the year.

Highlights of main activities undertaken by TIN Support Groups during 2003/04.

Biratnagar Support Group headed by Mr Radha Prashad Ghimere,

• Established Investigative Journalism Award for Eastern Development Region journalists writing excellently on corruption issues.
• Represented the Group in coalition program launched by NGOs and HMG particularly local development units and trade and industry organizations.
• Provided help for performance of the anti-corruption street drama organized by TIN and Sarvanam Natya Samooha in Eastern Development Region.
• Opened office with modest facilities and hired Supervisor of the Offices to initiate Integrity Pact.
• Offered instruction services from the Group for Staff training organized by Nepal Administrative Staff College.
• Interacted on corruption and fund terrorism in conflict situation with United Kingdom Embassy Team, that came to Biratnagar for studying conflict management and peace establishment.

Birgunj Support Group headed by Prof. Mohan Yadav,

• Launched programmes against corruption in cooperation with other institutions of civil society.
• Provided help for Sarvanam Natya Samooha in performing Street Drama.
• Decided to celebrate Baishakh 15 as the Group's anniversary.
• Published annual bulletin on anti-corruption information.

Janakpur Support Group headed by Mr Madan Mohan Thapa,

• Organized a seminar on CIAA against corruption.
• Held discussion with businesspersons on the working paper entitled Principles Against Bribery.
• Sponsored an interaction program in Siraha with cooperation from local individuals and organizations on the theme Public participation against corruption.
• Completed an interaction program on the theme The role of women teachers in controlling corruption.
• Helped Mahottari district to organize a discussion program on the theme Integrity is the main basis for Good Governance.
• Undertook the task of holding a symposium on the role of organized women in eliminating corruption.
• Had a meeting held in Lahan to discuss the role of civil society against corruption
• Put up in public places six hoarding boards with anti corruption slogans
• Became actively engaged in helping the performance of Street Drama organized by Sarbanam Natya Samooha
• Motivated writers to publish articles against corruption

Pokhara Support Group headed by Mr Ananda Raj Mulmi,

• Conducted essay writing, interaction and oratory against corruption in schools and colleges
• Put up hoarding boards in the city with cooperation from Pokhara sub- municipality
• Got the local media publicize messages against corruption in an intensive manner
• Published bulletin with news materials
• Issued public appeal in a decent manner for economizing in public functions and avoiding unnecessary expenses in individual celebrations
• Requested Pokhara Jaycees to hold interaction program on good governance and avoiding corruption among organizations
• Got Lekhnath Lions Club motivated to organize a workshop for familiarizing 56 organizations with TIN and its activities and collecting suggestions for future activities
• Discussed with local administration about the prospects of organizing anti-corruption activities in cooperation with the civil society
• Exhibited 37 anti corruption pieces of art prepared by Sirjansheel Kalakar Samooha in the colleges, public places and fairs
• Distributed anti-corruption materials and those materials received from TIN to libraries and public places for public use and viewing
• Organized an introductory program with National Vigilance Centre on the preliminaries of anti-corruption actions
• Published and distributed calendar with anti-corruption messages
• Provided 3-day training to Social Science teachers of 80 schools in Kaski district in cooperation with Nepal Teachers' Association, Kaski
• Requested Lekhnath Chambers of Commerce and Industries to familiarize its members with code of conduct.
• Facilitated the display of street dramas in Pokhara and Lekhnath.

Bharatpur Support Group headed by Mr Leela Nath Subedi,

• Helped the Sarbanam Natya Samooha perform street drama in Narayangadh Bazaar
• Opened office and organized programmes
• Held discussion with district media persons for working together against corruption
• Organized a dialogue among Nepal Telecom Office chief, technical staff, Consumers' Right Protection Forum, civil society, Human Rights and Peace Society, Locality Reform Committee and telephone consumers
• Arranged a special get together for former minister, parliamentarian, civil society member, professors, intellectuals and others to discuss the research paper Corruption and liquor

Butwal Support Group headed by Mr Manohar Kumar Shrestha (Current chair Mr Mahendra Shrestha),

• Formed a research sub-committee to suggest measures for researching corruption, collecting information and controlling the crime.
• Exhibited cartoons and paintings in cooperation with Pokhara Support Group for spreading information about anti-corruption.
• Put up two hoarding boards in public places condemning corruption.
• Constituted an evaluation committee to finalize the Investigative Journalism Award 2060.
• Helped the Sarbanam Natya Samooha perform street.
• Sponsored an interaction program on the role of civil society and private sector in controlling corruption in the presence of Chief Commissioner of CIAA Rt. Hon. Surya Nath Upadhyaya.
• Brought about agreement in principle with Butwal municipality about the establishment of Group Office.

Siddharthanagar Support Group headed by Mr Somraj Sigdel,

• Organized a talk program on Integrity, Good Governance and Consolidation and Effect in the presence of Chief District Officers and other Chiefs of district offices.
• Arranged for the display of street dramas titled Roop Anek Anek performed by Sarvanam Natya Samooha.
• Sponsored a day long symposium on Democracy and Good Governance.
• Completed a day long seminar on the role of media sector for good governance under the auspices of chief guest Mr. Taranath Dahal, the president of Federation of Nepal Journalists' Association.
• Arranged for a survey of opinion on issues such as the corruption cases in offices between 2046 B.S. and 2060 B.S., what people think about corruption and the most corrupted sector.
• Launched Peace March dubbed Women's campaign for good governance in cooperation with Samudayik Sewa and Aama Samooha.
• Held a symposium on corruption and good governance under the auspices of the chief guest CIAA chief Rt. Hon. Surya Nath Upadhyaya.
• Brought together the Office chiefs of Rupandehi district and TIN Support Group Siddharthanagar for discussing the issue of good governance at a program.
• Held an exhibition of paintings against corruption with aid from Pokhara Support Group.
• Introduced the district wise essay competition on corruption and good governance in collaboration with Siddhartha Sahitya Parishad.