Inception and Initial Days (1995-1998)

Two years after the birth of Transparency International (TI) in Berlin, seven Nepalese keen in combating corruption in Nepal by means of an institutional mechanism, met (September 28, 1995) to see if a chapter of TI could be founded in Nepal at a non-governmental level. This important initiative was taken by Devendra Raj Panday, who had been a member of the TI Advisory Council from the time of its inception at Berlin in 1993. It was in this meeting the decision to set up Transparency International Nepal (TIN) was taken.

On October 20, 1995, a preparatory meeting was held at  Kathmandu, where Devendra Raj Panday gave a general overview of the objectives and activities of the international body to the members present in the meeting namely, Daman Nath Dhungana, Rajendra Dahal, Prayag Raj Sharma, Hem Bahadur Bista, Tanka Prashad Karki, Dhurba Hari Adhikari, Radheshyam Adhikari, Ambica Shrestha, Bina Pradhan, Komal Chitracar and others.

The first formal meeting of the TIN was held on Nov. 5, 1995. The second meeting decided to invite three more persons to join the group. They were Nilambar Acharya, Damodar Prasad Gautam and Deep Kumar Upadhyaya.

On December 17, 1995 the meeting adopted the constitution of the organization and declared the TIN as formally launched. The same day, the group elected an Executive Committee with Ambica Shrestha as the President and Dhurba Hari Adhikari, Komal Chitracar and Biswambher Pradhan as the Vice President, Secretary General and Treasurer respectively. Devendra Raj Panday in view of his status at the international level was named advisor and permanent invitee. A fortnight later, the process was initiated for official registration of TIN, which came on August 19, 1996.

In the early part of 1996, the Executive Committee members visited the offices of the Public Accounts Committee (PAC) of the House of Representatives, the Commission for Investigation of Abuse of Authority (CIAA), the Auditor General (AG) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). During talks with the heads of these organisations, TIN representatives appraised them of organization's objectives and what TIN intended to do in terms of activities to achieve those objectives. TIN also sought their cooperation for successful launching of its programs.

One of the most notable of the 1996 activities of TIN was the National Dialogue on Coalition against Corruption--Role of Civil Society. The day-long program was chaired by the then CIAA chief Commissioner. Taking part in the dialogue were MPs, senior bureaucrats, journalists and professionals. 

In 1996, Michael Wiehen and Peter Rooke of TI came to Nepal in a study mission and held discussions with the then Prime Minister Sher Bahadur Deuba. The mission also held extensive discussions with various officials and representatives of civil society institutions in Kathmandu. A report was prepared in cooperation with the members of TIN Executive Committee. The Prime Minister appreciated the report and assured that he would treat the recommendations incorporated in the report with the seriousness they deserved in the context of Nepal. The report had stressed the urgency of making the evaluation of major procurement and privatization deals fully transparent.

In 1997, TIN organised a seminar on 'Corruption in Nepal'. Two working papers by Aditya Man Shrestha and Ramesh Nath Dhungel, one devoted to the general view of what constitute corruption, and the other referring to the cost of corruption, were presented at the seminar. At the end of the day, a 24-point resolution against corruption was unanimously adopted.

The issue of transparency in the award of procurement contracts financed by the World Bank was taken up with the Bank's Resident Mission in Kathmandu. During his visit to Nepal in 1997, Regional Procurement Advisor of the Bank, Hardayal Singh, consulted TIN officials on the proposed amendments in the Bank's loan documents to ensure transparency as a means to combat fraud and corruption.

The Public Accounts Committee (PAC) of the House of Representatives invited TIN to a special meeting in 1997, which was addressed, among others, by the Prime Minister, the Finance Minister and the Auditor General. MP Deep Kumar Upadhyaya (a TIN member) who was acting as the PAC Chairman outlined the critical state of affairs arising out of the lack of accountability in the management of public fund and national resources. The meeting focused on the findings of the Auditor General's Annual Report, ways and means to mitigate the adverse effects of financial irregularities and indiscipline in government offices and public enterprises.

The first general meeting of the organization was held on February 11, 1997 in which new executive members, Ramesh Nath Dhungel, Aditya Man Shrestha and Surendra Bahadur Shrestha were elected in place of those whose term had expired.