The summary of the white paper prepared by the authority under the Ministry of Energy mentions that the accumulated profit and other reserves amount to 5.89 billion rupees. The government’s share investment in the authority is 2 trillion 6 billion 740 million rupees, bringing the total equity to 2 trillion 59 billion 100 million rupees. The authority has stated that the due diligence audit (DDA) process will be initiated to verify the accurate status of assets, liabilities, and to conduct a detailed evaluation of the financial, technical, and managerial aspects.
The first board meeting held after the appointment of the authority’s Managing Director, Hiteshendra Dev Shakya, decided to issue a white paper to showcase the work done during Kulman Ghising’s tenure and the financial condition of the authority. The board meeting held on Monday, chaired by Energy Minister Dipak Khadka, has approved the white paper.
The white paper prepared by the authority mentions that as of mid-July 2024, the total outstanding dues of the authority, including 2.34 billion rupees for dedicated feeders and trunk lines, amount to 4.45 billion rupees. The summary of the white paper states: “For the first phase of the dedicated feeders and trunk lines, from mid-July/August to December 2015/January 2016, the amount is 1.42 billion rupees; for the second phase, from mid-January/February 2016 to mid-April/May 2018, it is 6.11 billion rupees; for the third phase, from mid-May/June 2018 to mid-June/July 2020, it is 9.01 billion rupees, along with an additional 25% penalty, totaling 6.90 billion rupees. The total amount for the dedicated feeders and trunk lines is 23.44 billion rupees.” It further adds, “To recover these dues, technical evidence needs to be gathered, and the amounts for the first and third phases are under consideration in the court.”
The white paper prepared by the authority also shows the total accumulated profit of the authority as 46.47 billion rupees, including outstanding dues such as those for dedicated feeders. However, during a meeting of the House of Representatives on March 6th, Minister for Energy, Water Resources, and Irrigation, Khadka, stated that the then Managing Director of the authority, Kulman Ghising, had shown the 22 billion rupees of dues for dedicated feeders and trunk lines as profit. He said, “The 22 billion rupees for dedicated and trunk lines, which the traders are supposed to pay but haven’t, were shown as profit, and using that, the government paid its revenue.” He further explained, “The amount that should be collected hasn’t been collected. It’s uncertain whether the revenue will be collected or not. The issue is whether it can be considered as income and the revenue paid based on that profit.”
The authority has stated that 14.1 billion rupees, which were granted by the government under headings such as COVID relief and cooling centers, remain to be reimbursed. “Including the dues for dedicated feeders, trunk lines, and other outstanding amounts, the total dues amount to 32.05 billion rupees,” the document mentions. “The report from the Office of the Auditor General for the fiscal year 2023/2024 also indicates that the collection is uncertain and there are concerns about the inclusion of these amounts in income. These outstanding amounts appear to have been included in the income, as reflected in the authority’s accounts.”
Source: Kantipur
