Arrears of energy sector increased to Rs 1.2972 billion as of the FY 2021/22: OAG report

Kathmandu; The arrears amount of energy related government bodies stood at Rs 1.2972 billion in the fiscal year 2021/22.

The 60th annual report unveiled by the Office of the Auditor General (OAG) shows that the Ministry of Energy, Water Resources and Irrigation (MoEWRI) and its 68 related government offices had the aforementioned amount of the unsettled financial transactions. This shows a high level of financial irregularities in the country’s energy sector, which has hindered the achievement of the targets maintained by the government annual program in the segment.

The OAG report has pointed out that there is lack of inspection of the utilization of grants provided through the MoEWRI. Lack of timely completion of energy related projects and faulty procurement processes are among the underlying problems of the sector.

The constitutional body has also mentioned that the ministry has failed to implement the prescribed correction measures while handing over the contracts. Of the arrears amount, the advances that crossed the maturity dates make out over Rs 90 million.

Likewise, the outstanding dues on electricity bills increased 10.15 percent during the review period. As of last year, Nepal Electricity Authority was left to recover the dues of Rs 40.12 billion from the government offices and the private sectors.

Any financial transaction carried out without providing the required documents and fulfilling the processes is listed under arrears. Large amount of arrears expresses higher possibilities of corruption in the government bodies concerned.

The OAG report shows that the arrears increased by 21.45 percent last year. The government’s arrears increased by Rs 119.77 billion in 2021/22, while the total arrears amount reached Rs 587 billion as of now.