August 23: The Office of the Auditor General has raised serious questions over the legitimacy of the Investment Board. Within three years of its establishment, the existence of the Investment Board has been questioned by the constitutional body for its poor performance although the government had set up the Board as per the Public-Private Partnership and Investment Act, 2075 for the construction of infrastructure, mobilization of domestic and foreign resources and promotion of investment.

A recent report by the Auditor General, a constitutional body that has been auditing the country's public resources as well as government revenue and expenses, has questioned the legitimacy of the Investment Board.

According to the report, the Investment Board has not been able to work as intended and is misusing the state treasury by receiving salary benefits only. Similarly, the expenses incurred in the administrative tasks of the board is also unreasonable so the current structure should be reviewed if the board continues to perform its duties like this. In the fiscal Year 2019/20, the government had allocated Rs 504 million for the board but it could spend only Rs 42.33 million. 

The report states the board has been ineffective in evaluation, monitoring and preparation of agreement papers of 50 projects in 2019.

According to the OAG report, the board has failed to establish Public-Private Partnership Unit. 

The programs specified by the Investment Board in its annual program are not implemented but salary and other allowance has been received by the board members, the report further stated. The report says, "the Investment should operate in accordance with its objectives otherwise the current structure should be reviewed."

Maheshwar Kafle, Deputy Auditor General, said the detailed report of the OAG has highlighted the real performance of the Investment Board so it should act in accordance with its objectives.

“We have highlighted the real indicators that need to be corrected.  The concerned ministry and department should play an important role to bring reform in the board. The Parliamentary Public Accounts Committee should also issue necessary instructions,” added Kafle.