Nepal: Support to Anticorruption Institutions

Sovereign Project | 38172-012 Status: Closed


Corruption in Nepal had remained a systemic problem and undermined the performance of the bureaucracy and the Government as a whole. The recognition that good governance is important for development has prompted the Government of Nepal and development agencies to intensify their efforts to improve governance, particularly with measures to combat corruption.

Latest Project Documents

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Support to Anticorruption Institutions
Project Number 38172-012
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4962-NEP: Support to Anticorruption Institutions (former Capacity Building in Anticorruption Institutions)
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Law and judiciary

Gender Equity and Mainstreaming
Description Corruption in Nepal had remained a systemic problem and undermined the performance of the bureaucracy and the Government as a whole. The recognition that good governance is important for development has prompted the Government of Nepal and development agencies to intensify their efforts to improve governance, particularly with measures to combat corruption. To address the problem, the enactment of several anticorruption laws provided new mechanisms, and the Government identified five institutions that play critical roles - (i) Commission for the Investigation of Abuse of Authority (CIAA), a constitutional body empowered to investigate and prosecute cases of abuse of authority; (ii) Special Court, used by the CIAA to prosecute cases of corruption; (iii) National Vigilance Centre (NVC), reporting directly to Prime Minster and playing a preventive role primarily in monitoring asset declarations of government officials, and conducting technical audits of projects; (iv) Office of the Auditor General (OAG), a constitutional body which conducts independent audits and evaluation of public resource use, and (v) Public Accounts Committee (PAC), which is one of the committees of the House of Representatives whose main function is to examine the Public Accounts and report of the Auditor General. Initially all the five institutions were the implementing agencies (IA) of this TA. However CIAA opted out at the needs assessment stage and Department of Revenue Investigation (DRI), a department of the Ministry of Finance, joined the TA as IA. Strengthening governance is one of the four pillars of development in Nepal's Tenth Plan (2002-2007). Besides, it is a strategic focus for ADB's assistance to Nepal and was based on the Country Strategy for Nepal for 2005-2009, which listed support to anticorruption efforts as a critical component of ADB work on governance reforms in Nepal. This advisory TA formed part of ADB's efforts to assist the Government in fighting corruption by enhancing the capacity of anticorruption institutions and improving their ability to fulfill their statutory mandates. The TA was approved on 30 August 2007 but the implementation started only on 8 December 2008. Due to the delay in implementation, it was extended to 8 July 2010 on a no cost extension' basis. Given its mandate to play a coordinating role for the entire government, Office of Prime Minister and Council of Ministers (OPMCM) served as the Executing Agency (EA) of the TA.
Project Rationale and Linkage to Country/Regional Strategy The Country Strategy for Nepal for 2005-2009 lists support to anticorruption efforts as a critical component of ADB work on governance reforms in Nepal.
Impact Enhancement of good governance through stronger action against corruption, and greater accountability and transparency in the public sector
Project Outcome
Description of Outcome Stronger anticorruption institutions whose work is coordinated better, and which are more able to fulfill their statutory mandates
Progress Toward Outcome

1. Priority activities to achieve the identified priority needs of five Partner Institutions (Office of the Auditor General, Department of Revenue Investigation, National Vigilance Center, Special Court and Public Accounts Committee) were duly agreed with partners concerned, minutes recorded and signed.

2. Computer-aided auditing was piloted by the Office of the Auditor General at Tribhuwan International Airport to the satisfaction of OAGN and Ministry of Finance.

3. Web-based Central Information System (CIS) installed by the project at DRI and its outreach offices is an innovative system for enhancing their efficiency and effectiveness.

4. The project assisted National Vigilance Centre (NVC) in increasing the pool of technical audit human resource.

5. The Project developed and installed, asset declaration software at the request of NVC in a number of government offices and financial institutions. This could enable these offices to manage the filed asset declaration forms by its employees, and NVC to monitor the compliance of the legally required provision of filing, and updating, the asset declaration forms on time.

6. NVC, a very important government agency in preventing corruption, has only recently been additionally empowered through the enactment of National Vigilance Center Regulations, 2065.

7. The project assisted Special Court in drafting the Special Court Regulations 2066. It could have been a significant achievement, had this regulation been enacted during the project period time. The enactment of the regulation is in the process, awaiting Supreme Court approval.

8. Public awareness campaign was included in the TA as a very important component of the project. The awareness campaign was carried out under the assistance of this project at all partner agencies to the extent possible.

Implementation Progress
Description of Project Outputs

1. Needs assessment reports and capacity development plans

2. Trained personnel and upgraded information and intelligence systems of anticorruption institutions

3. Public awareness campaign materials

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Needs assessment reports and capacity development plans

The Consultant team carried out need assessment with the partner institutions through the focal persons assigned there, based on the following principles:

- Priority activities identified during discussions must not deviate too much from the activities already indicated in the Project Document;

- Distribution of available budget under technical assistance (TA) for identified priority activities of each partner institution must be made on as equitable as possible basis;

2. Trained personnel and upgraded information and intelligence systems of anticorruption institutions

I. Office of the Auditor General (OAG)

-14 (fourteen) Laptop Computers (@ 1 laptop to each Division within OAG) provided,

-14 (fourteen) IDEA software (@ 1 software per laptop) provided,

- 4 (Four) staff having received ToT at OC&AG, India have trained another 10 (ten) OAG colleagues/ staff in the use of IDEA software,

- Tribhuwan International Airport (TIA was selected for piloting the computer-aided auditing in this fiscal year

Final Audit Guideline was submitted after incorporating comments received from OAG senior staffs through interaction program conducted at OAG offices with the assistance of the project team.

II. Department of Revenue Investigation (DRI)

a. Establish a DRI-Central Information System (CIS)

- web-based intranet system linking DRI-Central Office, its 4 Regional Units (in Itahari, Pathalaiya, Butwal and Kohalpur) and 2 check posts (in Thankot and Dhulikhel) installed.

- Intranet WAN connectivity was established through an agreement with Service Provider (Subisu Cablenet)

- Hardware, battery and UPS backup systems provided for CIS at DRI and its outreach offices installed

- CIS Operational Manual prepared and the staff trained through the piloting of CIS.

-System Database Administrator and Data Entry Operators were transferred to DRI after the project completion.

- CIS in full operation

III. National Vigilance Center (NVC)

- Two training were conducted: a total of 41 persons trained in two batches in Kathmandu by Training Institute for Technical Instruction (TITI)

- A software prototype developed enabling the responsible agencies to record the asset declaration within their jurisdiction,

- Software installed at the Parliament Secretariat, Ministry of Finance and OPMCM,

- Staff responsible for recording the asset declaration forms trained and helped during initial filing of the records,

IV. Special Court

- A final draft prepared and already been commented upon by Ministry of Law &Justice (MoL&J),

- Draft amended after the comments from MoL&J presented to the Full Court of Supreme Court for comments and approval.

- A set of books approved by the Supreme Court authorities already provided

-A web site designed and domain registered

- A training on Anti Money Laundering Laws for the staff from the Special Court, DRI organized jointly with Nepal Rastra Bank,

3. Public awareness campaign materials

Four out of five partner institutions (OAG, NVC, Special Court and PAC) are central level institutions that have no outreach offices on other parts of the country. The fifth institution DRI is the only institution which has 6 (six) outreach offices at different locations, apart from its Central Office in Lalitpur.

Since the project with limited duration and personnel of its own cannot cover the entire country, it was proposed by the project team, and agreed by the PSC meeting no. 1, that the project's outreach activities will be limited to the places where the outreach offices of DRI are located.

A one and a half minute long tele-spot was also produced covering all five anticorruption agencies as part of the public awareness campaign to be aired on national TV. However, it could not be aired within the project life due to correctional procedure for inconsistencies in production and the message it was going to deliver to general public.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation tbd
Business Opportunities
Consulting Services The TA will require 24 person months of national consultancy services. The consulting firm will be selected using the QBS method, and biodata technical proposals will be requested. National consultants will include an anticorruption expert, needs assessment specialist (institutional/organizational development), needs assessment specialist (judicial/legal expert in the judiciary), auditing/government finance specialists, information technology specialist and public awareness campaign specialist. The consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants.
Procurement tbd
Responsible ADB Officer Rachana Shrestha
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Office of the Prime Minister&Council of Ministers
Concept Clearance 09 Apr 2007
Fact Finding 05 Jul 2006 to 07 Jul 2006
Approval 30 Aug 2007
Last Review Mission -
PDS Creation Date 23 Mar 2006
Last PDS Update 28 Feb 2011

TA 4962-NEP

Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Aug 2007 18 Mar 2008 18 Mar 2008 31 Aug 2008 08 Jul 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 30 Aug 2007 331,510.59
Title Document Type Document Date
Support to Anticorruption Institutions TA Completion Reports Dec 2011
Support to Anticorruption Institutions Consultants' Reports Sep 2010
Support to Anticorruption Institutions Technical Assistance Reports Aug 2007

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.