The liability to be paid is Rs 184.3 million. Even though only Rs 150 million has been authorized by the budget to repay the debt, the 'sluggishness' of payments has not gone away.
What you should know
Sitaram Kattel 'Dhurmus', the chairman of the Dhurmus Suntali Foundation, is under stress due to the pressure to repay the work he has done on loan of crores of rupees while building an international-level cricket stadium in Bharatpur.
The stadium left unfinished by the foundation is now being built by Bharatpur Metropolitan City in partnership with the state and federal governments. But in the past, the issue of paying the work done on loan by the foundation while building the same structure has remained pending despite the budget.
Kattel Hill, who has been stressed by this issue, seems to be mentally and physically exhausted. He was staying at the Natural Hospital in Rajahar, Nawalparasi for treatment and was seen running to Bharatpur Metropolitan City almost every day for the last 12 days to reconcile the amount. After the federal ministry authorized the payment, the metropolis was running and lamenting that there was no work, but on Wednesday afternoon, he left saying, "I will not take the metropolis anymore."
The metropolis issued a press release on Friday saying that attention has been drawn to the news and social media issues after the delay in paying the foundation's loan as per the arrangements made by the federal government. In a statement issued by Chief Administrative Officer Laxmi Prasad Poudel, it is mentioned that the metropolis is looking for a method to pay private liabilities using government funds. 'The issue of paying private liabilities created by individuals and organizations privately using government funds is a very sensitive and legally complex issue,' the statement states. 'Since the issue of giving money to the
foundation could not be found in the sections and subsections of the law, the Chief Administrative Officer Poudel has also said that the process is in the stage of consultation with various bodies, procurement experts, legal experts, administrators, former administrators and subject experts. 'We are continuously and sensitively trying to find the best solution to this problem so that the employees involved in the payment process and the officials involved in the decision-making process do not have to face any legal complications and prosecution in the future,' the statement states. It is also stated that administrative work is done through legal methods and not by emotion, and in some cases it is not possible for some people to perform it as they want and at the time they want.
The metropolis has received the authority to spend Rs 150 million as a conditional grant from the federal government under the title of purchasing created assets. The amount is to be paid in four installments. But the metropolis has not been able to find the process and procedure for spending.
'Our position is that the federal cabinet should decide and directly provide a grant to the foundation. Rather, we are ready to do whatever it takes to recommend,' said Metropolitan Mayor Renu Dahal. She said that the metropolis has not been able to find a process or procedure for purchasing assets built or created by private or community organizations in any law prevalent in Nepal.
The metropolis had recommended on April 14 that the Government of Nepal provide a grant to the foundation through the Ministry of Federal Affairs to settle the liability for the construction of the stadium (to settle the debt).
It was mentioned in the budget statement for the fiscal year 082/83 that the necessary budget has been arranged for the purchase of created assets. The budget has been included in the National Sports Council program under the project implemented by the Ministry of Youth and Sports at the local level. Although 150 million rupees have been received for the purchase of created assets based on the engineering evaluation, the payment process has not yet begun. Due to which Kattel is still wandering around in an unwell condition.
The metropolis had sent a letter to the Ministry of Finance on Kartik 21, citing the dilemma and problems in the implementation of the budget, seeking instructions. The Ministry of Finance also sent a letter on Kartik 24, saying that the ministry's instructions are not required for work carried out in accordance with the Constitution of Nepal, the Intergovernmental Finance Management Act, and the Public Procurement Act. After that, the metropolis had also requested the Ministry of Youth and Sports, which authorizes the budget, to give instructions to resolve the problem.
The ministry also replied, 'It has no separate opinion as it will be implemented under the prevailing law.' But the metropolis is saying that it could not find the working procedures and processes. On the other hand, the foundation chairman Kattel is sad that he and his family are becoming victims due to not receiving the authorized amount.
On 16th Magh 2075, an agreement was signed between Bharatpur Metropolitan City Mayor Dahal and the foundation with much fanfare to build an international cricket stadium on the land provided by the metropolis. As per the agreement, the metropolis provided 20 bighas of land in Rampur that was being used by the University of Agriculture and Forestry but owned by Tribhuvan University for the construction of the stadium.
The decades-long dispute between Tribhuvan University and the University of Agriculture and Forestry regarding the transfer of property in Rampur and Hetauda is still ongoing. But the then vice-chancellors of both universities had agreed to let the metropolis use the land to build the stadium. Once the land was available, the foundation was to manage the financial resources. It was said that the stadium would be built within two years at a cost of about three billion rupees.
But as the work progressed, the amount could not be raised as expected. At the same time, the world was hit by the Corona pandemic. Then, the foundation wrote to the metropolis on Poush 2, 2078 BS, requesting it to take ownership of the project due to the impossibility of raising resources. But the foundation had already stopped the construction work. The metropolis says that the foundation did not mention anything about liability management in the letter sent at that time.
Then, on 20th Magh 2078, Chairman Kattel had submitted in the sanction letter that the foundation would not have any ownership, claim or 'kharkhichola' in the stadium as per the previous construction, as all accounts were being processed. The accounts showed that the liability to be paid was 184.3 million rupees. Which was also confirmed by other studies and tests. Even though the budget was authorized to repay only 150 million rupees, the 'kharkhichola' of payment has not been eliminated.
Earlier, on 20th Chaitra 2079, 120 million rupees were received as a grant to the foundation to pay the liability created during the construction of the stadium. The budget that came to the National Sports Council was also not implemented. Similarly, on 19th Asad 2080, the metropolis was authorized to pay the created liability according to the rules.
The foundation had borrowed more than Rs 180 million and worked for around Rs 600 million. After the foundation separated from the construction, the metropolis decided to complete the construction of the stadium in collaboration with the Bagmati government on Kartik 21, 2080. On Kartik 23, the federal government declared the stadium a national pride project. After that, the construction of the stadium has progressed by completing the work within 30 months in Asar 2081. Accordingly, the metropolis has stated that around 45 percent of the work has been completed.
