A parliamentary subcommittee has recommended revising the provision of automatic suspension of individuals holding public office when charged with corruption. The subcommittee, under the State Affairs and Good Governance Committee, has finalised an amendment to the Corruption Prevention Act, ensuring that individuals will not be suspended automatically upon being charged. The subcommittee has submitted a report to the State Affairs and Good Governance Committee for approval, and if approved, this provision will come into effect.

As per the new proposal, government employees accused of corruption but not charged with criminal penalties like confiscation of property will not face suspension.

Meanwhile, the government has already revoked the statute of limitations on corruption cases. Furthermore, the authority to investigate misconduct has been assigned to the National Vigilance Centre.

The parliamentary subcommittee has also recommended that the CIAA (Commission for Investigation of Abuse of Authority) should not have jurisdiction over private sector organisations. The umbrella bodies of private sector organisations such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries (CNI), and the Nepal Chamber of Commerce (NCC) have raised concerns about the negative impact of CIAA intervention on private sector operations.

To address these concerns, the amendment to the CIAA Act 2002 now excludes the private sector from the CIAA's purview. However, existing laws allow the CIAA to investigate projects or organisations receiving grants from the government, provincial governments, or local bodies, as well as institutions operating on funds from national or international organisations.

The National Assembly had previously authorised the CIAA to investigate institutions such as banks, financial institutions, insurance companies, medical colleges, hospitals, and public limited companies providing essential services. The subcommittee, however, has recommended removing this provision.

The CIAA has argued that private sector corruption should fall under its jurisdiction, citing Nepal’s commitment to the United Nations Convention Against Corruption (UNCAC), which requires private sector corruption to be criminalised. Despite this, stakeholders, including private sector organisations, have opposed expanding the CIAA’s authority, fearing it could discourage investment and lead to decision paralysis similar to issues in the government bureaucracy.

The current law allows the CIAA to investigate programmes or projects funded by government grants. Additionally, government officials can request court approval to monitor the phone calls of individuals suspected of corruption or access their electronic devices without prior court permission.

According to the subcommittee’s coordinator Hridayaram Thani, a Member of Parliament from the Nepali Congress, both amendments—relating to suspension and CIAA jurisdiction—have been passed by the subcommittee and forwarded to the committee. Once approved by Parliament, the provisions will be enacted after authentication by the president. This will pave the way for the new policies to be implemented.