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Kathmandu, Dec 9: Nearly Rs 4.7 billion of government investments in public institutions remain unverified, highlighting serious gaps in financial oversight. According to the Ministry of Finance and the Public Debt Management Office (PDMO), discrepancies exist between institutional records and official accounts, making it impossible to track loans and share investments accurately.

The PDMO reports Rs 2.63 billion in shares and Rs 2.05 billion in loans remain unreconciled. While the government claims substantial investments, institutional records often show lower figures. Weak internal controls and inconsistent accounting practices have allowed these gaps to persist for years.

Public institutions handling major infrastructure projects—including hydropower, airports, telecommunications, and water supply—have received significant government support. Yet, a lack of standardized accounting and monitoring systems prevents a clear understanding of fund allocation and utilization. For instance, the Nepal Electricity Authority’s rural electrification program and the Civil Aviation Authority’s asset evaluations show mismatched records. Kathmandu Valley’s drinking water boards also report large differences between loan disbursements and actual project spending.

Further complications arise from foreign grants treated inconsistently, changes in repayment schedules, and delayed project timelines. When the government borrows funds from development partners, rescheduling by institutions often clashes with the government’s repayment obligations, widening accounting gaps.

Despite total investments of Rs 9.308 billion across 159 institutions, returns remain weak. Principal and interest overdue have reached Rs 4.082 billion for FY 2024/25, undermining the impact of public spending.

Regular audits, a key accountability mechanism, are largely neglected. Only 21 institutions completed audits for FY 2023/24, while others have pending audits dating back over a decade. Entities like Udayapur Cement, Public Service Broadcasting Nepal, and Gorkhapatra Corporation have failed to reconcile their books in recent years.

The PDMO continues to urge institutions to maintain proper records and reconcile accounts, targeting completion by the end of the current fiscal month. However, the persistent lack of transparency and accountability raises urgent questions about the management of public funds and the government’s ability to safeguard taxpayer money. People’s News Monitoring Service