The recent report by the public auditor reveals that local governments in Pyuthan have shown excessive interest in fuel expenditures. According to Point 7 of the Public Expenditure Standards, Procedures, and Guidelines on Economy, 2018, when providing fuel to officials and employees who receive vehicle facilities, offices must determine a monthly fuel quota (in liters of diesel/petrol) and a quarterly quota for mobile and brake oil based on the recipient’s position, and must maintain updated records accordingly.
Swargadwari Municipality spent Rs 2,898,015 under the fuel expenditure heading and also used contingency funds to cover fuel costs. Sarumarani Rural Municipality spent Rs 189,947 on fuel and similarly tapped into contingency funds. Mandavi Rural Municipality recorded Rs 269,871 under fuel expenses, again drawing from contingency funds. Airawati Rural Municipality spent Rs 1,668,620 on fuel, with part of the expenditure also covered through contingency funds.
According to Section 4(2) of the Act to Amend and Consolidate the Laws Relating to Facilities Available to Local Level Officials and Members—enacted by the Ministry of Internal Affairs and Law of Lumbini Province in 2019—if a local government does not provide a vehicle, officials are entitled to transportation allowances as per a prescribed schedule. However, even though a vehicle is provided for official use by the rural municipality chairperson, it was found that Sarumarani Rural Municipality Chairperson Jhaga Bahadur Bishwakarma received transportation allowances totaling Rs 144,000 (Rs 12,000 per month) in violation of this provision. The audit report highlights this as irregular.
Similarly, the mayor of Pyuthan Municipality, Bishnu Bahadur Yogi, received transportation allowances in addition to vehicle and fuel facilities. The final audit report notes that he received Rs 12,000 per month from May 2022 to June 2023, totaling 14 months. Since these dual benefits fall under the same expenditure heading, the report recommends that the excess payment be recovered.
The Policy Guidelines for Maintaining Economy and Effectiveness in Public Expenditure, 2018 require all provincial and local offices, as well as their officials and employees, to exercise economic and effective spending. The Act on Facilities of Local Level Officials and Members, 2019 also provides guidelines on transportation facilities for officials.
In addition to receiving vehicles and fuel, some municipalities have also rented vehicles. Airawati Rural Municipality, which spent Rs 1,668,620 on fuel and transportation facilities, rented a vehicle at a monthly cost of Rs 90,000 in fiscal year 2022/23—an annual outlay of Rs 1,080,000. This expenditure, according to the final audit report from the Office of the Auditor General, violates existing regulations.
Responding to the report, Airawati Rural Municipality Chairperson Nabil Bikram Shah said the vehicle was rented instead of purchased to reduce costs, as the existing vehicle was old and in poor condition. “That vehicle is old and broken,” he said. “The chairperson, vice-chairperson, and chief administrative officer all travel frequently. We opted to rent a multipurpose vehicle as it was more cost-effective.” He added that a team, including a medical officer, visits 10 health institutions within the municipality each month to provide services such as video X-rays.
