Govt forms panel to probe alleged irregularities at IB

The Ministry of Finance has started an investigation into possible irregularities at the Insurance Board (IB).

A minister-level decision on July 20 formed a probe committee under MoF Joint-secretary Nawaraj Bhandari, which has been mandated to investigate six issues, including the board’s budget allocation and programmes for fiscal years 2012-13 and 2013-14, and staff appointment over the period.

The panel has also been asked to probe alleged losses to the IB for depositing money in banks’ call accounts, and appointment of a chartered accountant and his qualification. Other issues to be probed include the appointment and firing of former executive director of IB Binod Aryal.

Aryal was first hired under KC’s initiative, but was later removed from his post on charge of violating the regulator’s code of conduct and hiding his disqualification.

The probe committee has been formed at a time when the official trade union at IB has been holding protests, demanding pay hike and investigation into possible losses to IB due to call account deposits. The union has also demanded an investigation into the appointment of the chartered accountant, questioning his qualification.

The union had been obstructing regular work at IB since July 17.

The Post made repeated attempts to contact KC over the matter at his mobile and home phones, but to no avail. However, a source close to KC claimed the union’s protests and the formation of the probe committee are targeted at removing KC from his post.

Hinting at “political motives” behind the protest and the subsequent formation of the probe committee, the source denied any charges of irregularities.

KC was first appointed by the Maoist-led government under Puspa Kamal Dahal, and his contract was later extended during the second Maoist-led government headed by Baburam Bhattarai.

Given this context, a source at the Finance Ministry said the investigation panel

could have been formed for political reasons.

“KC was also asked to resign during the Madhav Kumar Nepal-led government, but he refused and the government could not force him to do so,” said the source.

IB Spokesperson Raj Kumar Aryal, however, expressed ignorance over the formation of the committee. The panel is expected to submit its report to the ministry by the first week of August.

source: the kathmandu post,28 july 2014