Parliamentary Committee Struggles to Reach Consensus on Bringing Private Sector under CIAA's Ambit

A parliamentary committee is struggling to reach a consensus on the provisions of a bill that seeks to bring the private sector under the jurisdiction of the Commission for the Investigation of Abuse of Authority (CIAA).

Two corruption-related amendment bills have been registered in Parliament, aiming to criminalize corruption in the private sector and grant the CIAA the authority to investigate and prosecute such cases. These include the Bill to Amend the Prevention of Corruption Act, 2059, and the Bill to Amend the Commission for the Investigation of Abuse of Authority Act, 2048, both of which are currently under discussion in the State Affairs and Good Governance Committee of the House of Representatives.

The proposed amendment to the CIAA Act seeks to extend the commission’s jurisdiction to include the private sector. However, the private sector has raised concerns, arguing that such oversight could negatively impact the investment climate if irregularities are perceived. Although this issue has been discussed multiple times within the committee, a decision has not been reached due to a lack of consensus. To resolve this, the committee chairman formed a sub-committee to facilitate further discussions and seek a consensus.

During Thursday's meeting of the State Affairs and Good Governance Committee, Chairman Ramhari Khatiwada announced the formation of a sub-committee after consultations with Home Minister Ramesh Lekhak. The sub-committee, tasked with reaching an common understanding on whether the private sector should fall under the CIAA's jurisdiction, has representatives from various political parties including Hridayaram Thani (Nepali Congress), Raghuji Pant (CPN-UML), Hitraj Pandey (CPN-Maoist Centre), Chanda Karki (RSP), Ashok Rai (JSP), Rajendra Pandey (CPN-Unified Socialist), Buddhiman Tamang (RPP), and Sarvendranath Shukla (Democratic Socialist Party). Chairman Khatiwada intends to make a final decision based on the sub-committee’s recommendations.

Khatiwada tasked the sub-committee with determining whether the CIAA should be allowed to oversee the private sector. The sub-committee has been asked to submit its suggestions to the main committee.

During Thursday's meeting, the Home Minister raised key: Should the CIAA have jurisdiction over the private sector? If so, to what extent? He urged the committee to clarify this matter, noting that the involvement of public funds in the private sector would warrant an investigation by the CIAA. However, he also emphasized the need for further discussion on whether the commission should have the authority to examine the full financial accounts of private companies.

"The government will abide by the decision of the committee. My request is for the committee to engage in thorough discussions. First, we must decide if the CIAA’s jurisdiction should extend to the private sector, and if so, to what degree. Once that is clear, drafting the language of the bill will be straightforward. The fundamental principle must be established first," said Minister Lekhak.

There is strong opposition to allowing the CIAA to oversee the private sector, particularly due to the ongoing complaints that the commission struggles to effectively fulfill its duties even within its current jurisdiction. 

Private sector representatives have also been lobbying against the CIAA's involvement in their domain. Rajesh Kumar Agarwal, president of Confederation of Nepalese Industries, questioned the need for CIAA oversight, stating, "The CIAA has its own scope and limitations. What role does the CIAA have in the private sector? If there are separate laws and regulatory bodies for the private sector, why does the CIAA need to be involved?”