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Nepalgunj Sub-Metropolitan City spent more than Rs 15 million under vehicle fuel and maintenance expenses in the fiscal year 2024/25, according to the annual audit report of the Office of the Auditor General. The report has raised questions over the use of public resources and expenditure management after pointing out the need to maintain economy and efficiency in such spending.

Spread across an area of 85.94 square kilometres, Nepalgunj Sub-Metropolitan City uses various vehicles for service delivery, monitoring, administrative work, and transportation of elected representatives and employees. According to the audit report, the municipality spent Rs 9.99 million on fuel during the fiscal year 2024/25.

Similarly, it spent Rs 5.825 million under the vehicle maintenance heading. The total expenditure under the two categories reached Rs 15.825 million. The report states that according to the Public Expenditure Standards, Procedures and Austerity Guidelines, 2018, a monthly quota should be fixed for office bearers and employees receiving fuel facilities and expenditure should be managed accordingly. It also requires regular updates of records related to vehicle operation costs, fuel consumption, and their utilization.

However, the report states that the office did not give adequate priority to the practice of fixing minimum fuel quotas for vehicles to control costs while recording fuel expenditure. Although fuel expenses were paid, improvement in record management was necessary to ensure the effectiveness and control of such spending.

The report also drew attention to maintenance expenses. Compared to the previous fiscal year 2023/24, maintenance expenditure increased by around 28.75 percent. The report concluded that frequent repair expenses had raised questions over the condition of vehicles and equipment, the effectiveness of regular maintenance, and the overall use of resources.

Auditors have recommended that maintenance expenses should be made only after evaluating their necessity, justification, and outcomes. The report notes that unnecessary expenses can be reduced by making the regular maintenance and management system of vehicles more effective. It also recommended adopting austerity measures in other categories of recurrent expenditure.

According to the Local Government Operation Act, 2017, local governments are required to spend budgets and use public resources based on necessity, justification, and expected outcomes. However, the audit indicated that expenditure in some areas has been increasing, suggesting a need for further improvement in expenditure control and management.

At a time when complaints are growing over a lack of resources for development works, basic services, and programmes directly connected to public livelihoods at the local level, the high amount spent on administrative headings such as fuel and maintenance has drawn attention. Stakeholders have stressed the need to prioritise maximum utilisation of public resources, transparency in spending, and austerity.

The Auditor General’s report has also suggested that Nepalgunj Sub-Metropolitan City should make fuel, maintenance, and other administrative expenses more systematic, transparent, and result-oriented in the coming days.

Irregularities worth Rs 73,000 found in monitoring allowances

Irregularities have been found in allowances distributed in the name of project monitoring in Ward No. 19 of Nepalgunj Sub-Metropolitan City. The Office of the Auditor General’s audit report for fiscal year 2024/25 concluded that the allowances had been distributed in violation of existing laws and directed authorities to recover Rs 73,100.

According to the report, Ward No. 19 had provided monitoring allowances to the ward chairperson, ward members, and technical staff during the supervision of various projects implemented by the ward.

However, the Lumbini Province Act Relating to Facilities of Local Level Office Bearers, 2018, and the Public Expenditure Management Guidelines clearly state that additional allowances cannot be received for tasks that fall under regular duties.

The audit found that Ward Chairperson Parsaram Kurmi, ward members Ramsundar Kurmi, Mansur Khan, Amrita Kumari Singh and Sunita Kori, along with engineers, sub-engineers, assistant sub-engineers and other employees, had been paid allowances of Rs 7,350 each.

A total of Rs 73,500 was distributed to 10 individuals in this manner.

The Auditor General’s report states that office bearers and employees of public bodies cannot receive additional facilities for monitoring and inspection work that falls within their regular scope of responsibilities. Therefore, the report concluded that the amount paid against the rules should be recovered from the concerned individuals.

Stating that activities carried out to make monitoring of development projects effective at the local level fall under regular responsibilities, the auditors suggested tighter control over such expenses in the future, as additional allowances had been distributed in the name of monitoring. The issue has also raised questions regarding fiscal discipline and compliance with laws governing public expenditure at the local level.

By Ganesh Bishu