By Saugat Kandel
In the aftermath of the 7.8 magnitude earthquake that hit Nepal, there has been a huge inflow of resources - funds and supplies - into Nepal, an inflow which, while well-intentioned, has been very haphazard and unregulated. The Government of Nepal has been struggling to cope with this inflow, and has made several hasty attempts at regulating it. These new controls have led to severe confusion, anxiety, and some horrendous miscommunication. We, at the
One Stop Portal, have previously attempted to clarify these regulations: whether the relief materials are taxed, how to clear customs in the Tribhuvan International Airport for relief materials, how to distribute relief materials, and how to effectively fund the relief effort in Nepal.
In the aftermath of the 7.8 magnitude earthquake that hit Nepal, there has been a huge inflow of resources - funds and supplies - into Nepal, an inflow which, while well-intentioned, has been very haphazard and unregulated. The Government of Nepal has been struggling to cope with this inflow, and has made several hasty attempts at regulating it. These new controls have led to severe confusion, anxiety, and some horrendous miscommunication. We, at the
One Stop Portal, have previously attempted to clarify these regulations: whether the relief materials are taxed, how to clear customs in the Tribhuvan International Airport for relief materials, how to distribute relief materials, and how to effectively fund the relief effort in Nepal.
In it’s attempts to regulate the flow of funds into Nepal, the central bank of Nepal, Nepal Rastriya Bank (NRB), has sent directives to the local banks, asking that any unregulated funds be transferred to the Prime Minister’s Disaster Relief Fund (PMDRF). This attempt has caused widespread confusion and panic among the local Nepali community as well the donor community, an issue which we have tried to resolve in a previous post. Even after our clarifications, an outstanding issue remains - what exactly is the Prime Minister’s Disaster Relief Fund? Wrongly or rightly, there has been a lot of suspicion and anger directed at this fund, suspicion that the government has created this find simply so that the politicians can bide their time and misappropriate the funds, anger that politics is rearing it’s ugly head even in trying times like these. This has even led to mass campaigns and petitions that NGOs, INGOs, grassroot activists, and even foreign governments take the leading role in the relief efforts, that the Government of Nepal take a back seat, and that the PMDRF be abolished even. These campaigns, however, arise from misconjectures about how the PMDRF functions, about what role it plays in the disaster relief efforts.
As Swarnim Wagle covers in his excellent Facebook post, the PMDRF is composed entirely of technocrats, not politicians. It is headed by the Vice-Chairperson of the National Planning Commission, and is composed of 8 Secretaries from the National Civil Service. This structure of the PMDRF provides a layer of shielding against direct political interference, ensuring that the political parties cannot easily do as they wish with the the funds collected.
Part of the confusion also stems from differing ideas on what the role of the government should be in the disaster relief efforts. Since past experience tells us that many public officials in Nepal are either corrupt or just plain incompetent, it is natural that people ask that NGOs, INGOs, grassroot activists, and even foreign governments control the relief effort. This argument ignores the situation in the ground, both for the short term, and the long term.
For the short term, we have to realize that there are tens of thousands of Police, Armed Police, and Army servicemen active on the ground, spearheading the relief and rescue operations. These operations are funded through government funds, and work under government authority. Removing either the funds or the authority could seriously hamper the relief efforts.
For the long term, we have to understand that the scale of the reconstruction effort required is massive. Rebuilding the roads, the houses, and any other affected infrastructure is going to take funds, manpower, and resources at a scale which only a central authority like the government can really provide. Again, there is no option to having the government involved.
We do not, however, argue that the government be let off scot-free. Given that the public officials have previously shown a tendency towards corruption and incompetence, it is important that the Nepali public, the media, and the grassroot activists all always maintain a watchful eye over how the PMDRF is spent, forcefully ask for accountability, and carefully scrutinize every transaction conducted. Only in such eternal vigilance lies an opportunity to build a new and better Nepal.
Here is the excellent post by Swarnim Wagle in its entirety:
As Swarnim Wagle covers in his excellent Facebook post, the PMDRF is composed entirely of technocrats, not politicians. It is headed by the Vice-Chairperson of the National Planning Commission, and is composed of 8 Secretaries from the National Civil Service. This structure of the PMDRF provides a layer of shielding against direct political interference, ensuring that the political parties cannot easily do as they wish with the the funds collected.
Part of the confusion also stems from differing ideas on what the role of the government should be in the disaster relief efforts. Since past experience tells us that many public officials in Nepal are either corrupt or just plain incompetent, it is natural that people ask that NGOs, INGOs, grassroot activists, and even foreign governments control the relief effort. This argument ignores the situation in the ground, both for the short term, and the long term.
For the short term, we have to realize that there are tens of thousands of Police, Armed Police, and Army servicemen active on the ground, spearheading the relief and rescue operations. These operations are funded through government funds, and work under government authority. Removing either the funds or the authority could seriously hamper the relief efforts.
For the long term, we have to understand that the scale of the reconstruction effort required is massive. Rebuilding the roads, the houses, and any other affected infrastructure is going to take funds, manpower, and resources at a scale which only a central authority like the government can really provide. Again, there is no option to having the government involved.
We do not, however, argue that the government be let off scot-free. Given that the public officials have previously shown a tendency towards corruption and incompetence, it is important that the Nepali public, the media, and the grassroot activists all always maintain a watchful eye over how the PMDRF is spent, forcefully ask for accountability, and carefully scrutinize every transaction conducted. Only in such eternal vigilance lies an opportunity to build a new and better Nepal.
Here is the excellent post by Swarnim Wagle in its entirety:
**What is the PM's Disaster Relief Fund and What it is Not?**
I have been swamped with queries on what the recent Central Bank directive on transfer of funds AFTER the April 25 earthquake means. **I share your concerns.** But it only affects bank accounts that were opened in the last 6 days under the direct subject of "quake relief." People, agencies, NGOs, donors with established bank accounts before April 25 can continue to receive and mobilize funds just as they used to in the past. But I am verifying some more facts, and will post separately on this topic later.
In the mean time, there is a lot of misunderstanding about the PM’s Disaster Relief Fund. Let me clarify based on what I know:
1. The Prime Minister (or his party) have absolutely nothing to do with it. The PM cannot access this fund himself. It is coordinated by the Vice Chairperson of the NPC and 8 Secretaries through a unanimous decision.
2. It is purely a relief fund, channeled through the Chief District Officer in each disaster-hit district, and is meant to follow a “fast track” to cut through the usual procedural delays in a slow bureaucracy.
3. The fund cannot be used to provide donations or any other administrative or overhead costs including facilities and allowances to civil servants. (They get no helicopter rides or random “incentives.”)
4. This is *completely* different from the Prime Minister’s “Assistance Fund” which he can use with discretion.
5. Is there some leakage, abuse, waste? I bet there is, just like there is scope for foul play in any large fund run by multilaterals (WB/ADB), bilaterals (UK/US) or NGOs. But what are the safeguards against potential abuse? Unlike the PM’s “Assistance Fund” which is not legally required to be audited, the “Disaster Relief Fund” is audited regularly and annually by the Office of the Auditor General of Nepal. There is a clear “Karyabidhi” (Operation Regulations 2006:http://opmcm.gov.np/…/cm…/file/niyamawali_20110717014805.pdf). “Akhtiyaar” can also look into cases and folks can go to jail.
6. The Government will most likely also add an extra layer of third party, independent auditing to enhance credibility and transparency.
7. No political party or leader has any access to these funds at the Centre. My personal view is that to prevent misuse in the districts, vigilance and scrutiny is required by the media and civil society. Do ask tough questions and hold officials to account.
8. The website lists all contributions so far (file downloadable in Excel), including the US$1 million cash donation from Bhutan:http://pmrelief.opmcm.gov.np/contributors.aspx
9. In view of the above, the premise of this article in a British newspaper that “funds are being directed to a political party” is completely untrue.http://www.telegraph.co.uk/…/Nepal-aid-donors-may-halt-fund…
10. For further clarity, please contact the Coordinator of the Fund, Prof. Dr. Govind Raj Pokharel (NPC Vice Chair) on his mobile: 98511 00407 or the Secretary of the Office of the Prime Minister and Council of Ministers Mr. Narayan Gopal Malego on 98415 16505.
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