PEs in loss can’t dole bonuses: CIAA
KATHMANDU, JUL 31 - The Commission for the Investigation of Abuse of Authority (CIAA) on Friday directed the Chief Secretary and other concerned government agencies not to allow distribution of bonus in those public enterprises (PEs) incurring cumulative losses.
Earlier, the anti-graft body had made such a decision in the case of Nepal Oil Corporation (NOC) that decided to distribute Rs 198.8 million as bonus to its staff for the fiscal year 2008-2009. The NOC had earned Rs. 3.31 billion profit in FY 2008-09 but its cumulative losses was Rs. 7.92 billion during the period, according to the Ministry of Finance (MoF).
A total of 18 corporations out of 36 incurred loss in FY 2008-09 as per annual performance review of PEs prepared by the MoF.
The CIAA has told secretaries of MoF and those in the ministries of Industry, Commerce and Labour besides the Chief Secretary to
implement its direction immediately in the PEs under them.
Udayapur Cement Industry, Udayapur Cigarette Factory, Nepal Drugs Limited, Dairy Development Corporation, Herbs Production and Processing Company, Hetauda Cement Industry, Nepal Orind Magnesite, Agriculture Inputs Company, Nepal Airlines Corporation and National Construction Company are among the PEs that incurred loss in FY 2008-09.
Nepal Engineering Service Consultancy, National Productivity and Economic Development Centre, Nepal Television, Janak Education Material Centre, Cultural Corporation, Nepal Electricity Authority and Nepal Water Supply Corporation also have suffered loss and are not entitled to distribute any bonus.
After the CIAA directive, the NOC board has already withdrawn its decision to distribute bonus. Enraged NOC employees are planning to agitate against the board decision. As per the existing bonus Act, any government entity can give bonus in the year that the corporation earns profit.
Terming the existing bonus Act impractical, the government has already begun the amendment process of this Act while banning distribution of bonus until cumulative losses are recovered.
Posted on: 2010-07-31 09:23
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