Outgoing Prime Minister Sushila Karki appointed her own personal secretary to the National Nature Conservation Fund on Chaitra 1. Karki, who earned praise for conducting peaceful elections, was criticized for appointing her own personal secretary, saying that there was a conflict of interest. 

In Magh 2079 BS, the Rastriya Prajatantra Party made Bikram Pandey the Minister for Urban Development. The Commission for the Investigation of Abuse of Authority had filed a case against Pandey, the owner of Kalika Construction, in a special court in Mang 2075 BS, alleging irregularities in the Sikta Irrigation Project. Not only that, Pandey's company had varied the 'Medium City Integrated Urban Environmental Improvement Project' run in Biratnagar Metropolitan City with the loan assistance of the Asian Development Bank four times and extended the deadline six times.

The Organization for Economic Cooperation and Development (OECD) has defined conflict of interest as the situation where there is a conflict of interest between the public responsibilities of a person holding a public office and his private interests. The cost of the project, which had a budget of Rs 2.39 billion, had reached over Rs 3.10 billion. Giving the responsibility of the Ministry of Urban Development to the owner of the same company seemed like a sheer conflict of interest. Similarly, on 31 Ashad 2081, water resources businessman Deepak Khadka was made the Minister of Energy, Water Resources and Irrigation in the KP Sharma Oli-led cabinet. During his tenure, conflict of interest in many hydropower projects was made public. 

These are just a few examples. For a long time, the practice of appointing officials of the cabinet, parliamentary committees, and regulatory bodies that have been formed has been spreading. This has become a major problem in Nepal's governance system and a cause of corruption.

What is conflict of interest? 

Conflict of interest is the process of any person using public resources, rights, and powers obtained through that power and position for his own personal interests by taking responsibility for an area in which his interests are connected or by reaching leadership. For example, if a person has been involved in the foreign employment business for a long time, when he is the Minister of Labor and Employment, there is a possibility of making laws and policies that will benefit his company or profession. Or, he has access to information related to the subject, from which the person can benefit. This type of situation is considered a conflict of interest. 

The Organization for Economic Cooperation and Development (OECD) has defined a conflict of interest as a situation where there is a conflict of interest between the public responsibilities of a person holding a public office and his private interests and concerns. Similarly, according to scholar Gerard Carney, conflicts of interest include a person holding a public office having a partnership with private business interests, being involved in government contracts and procurement processes, a public official being involved in other bodies and making decisions that benefit the same body, a permit holder granting a business license to a company or body on the condition that he will get a job in that body in the future, and an official on a compensation determination committee unnaturally increasing the price after seeing that his or his family's land is falling. 

Conflict of interest can basically be classified into three dimensions. First, there is a direct or actual conflict of interest. In this type of conflict of interest, the responsible official misuses his official responsibilities and participates in the decision-making process in a way that benefits his company or family, relatives and other close relatives or friends. Second, there is a perceived conflict of interest. In this type of conflict of interest, the general public feels that the person holding a public position has an interest in the performance of his role and is making decisions out of self-interest, but it may not be directly visible. Third, there is a potential conflict of interest.

People with conflict of interest are taking or giving appointments one after another in places where their interests conflict. They are participating in the decision-making process. , which refers to the act of a person holding any public position taking into account the situation far behind or making decisions with thought. Even if there is no immediate benefit in this, there is a practice of making decisions with the intention of gaining benefits in the future. For example, removing the 'cooling off period' in the Civil Service Bill or deciding in the interests of any donor agency or private company while in public service and going to work for the same donor agency or company immediately after retirement, falls under this category. Potential conflicts of interest are difficult to identify immediately, but they become clearly visible after some time. Similarly, some scholars have explained conflict of interest by dividing it into two categories, those involving money or financial transactions and those not.  

It seems that MPs with conflict of interest have taken an active role in the formation of parliamentary committees in the Nepali parliament. The rules of the House of Representatives stipulate that MPs with personal interests related to the scope of work of any committee cannot be appointed there. However, in practice, this is being violated. In the committees of the dissolved House of Representatives, MPs involved in banking, microfinance, large industries, manpower, crusher business, and contracting were members of the relevant committees. The Industry, Commerce and Labor Committee had MPs associated with manpower companies, and the Development Committee had MPs with contractor backgrounds. 

In Nepal, as there is no unified legal system regarding conflict of interest, it has been viewed only in terms of ethics. Therefore, people with conflicts of interest are taking or giving appointments one after another in places where their interests conflict. They are participating in the decision-making process. 

It is a basic principle of morality that one should not take responsibility or make decisions in places where one's interests are intertwined. However, the exact opposite is happening in Nepal. In parliament, members of parliament who have conflicts of interest are openly in the law-making committees. For example, in 2075 BS, members of parliament who have conflicts of interest in education were also involved in the preparation of the report of the High-Level National Education Commission.

Efforts to control conflicts of interest 

Countries that uphold democratic values ​​are discouraging appointments or responsibilities in places where there is a conflict of interest and are formulating policies and laws with provisions to declare such actions illegal and take legal action if they occur. For example, Canada has issued a law on conflict of interest in 2006 and has also formed the 'Office of the Conflict of Interest and Ethics Commissioner'.

Nepal had committed to making legal provisions to control conflicts of interest in the national action plan prepared in 2069 BS for the implementation of the said convention. Some international experiences have shown that not only legal provisions but also effective mechanisms and ethical practices are necessary to manage conflicts of interest. In some countries, including Canada, the United States, and India, there are strict practices such as public officials self-declaring their conflicts of interest, refusing gifts or sponsorships, and adhering to a certain cooling-off period while holding office or leaving office. 

In the case of Nepal itself, some bodies are practicing by incorporating the issue of conflicts of interest into codes of conduct, and some laws contain provisions on this. In Nepal, there is a practice that judges should not sit in court on cases involving conflicts of interest. There is also a practice in the National Human Rights Commission that the same person should not be involved in the investigation and decision-making. The Civil Service Act also contains a provision that civil servants should not make decisions in a way that conflicts of interest. Similarly, some laws and regulations, including the Good Governance Act, 2064 BS, the Nepal Rastra Bank Act, 2058 BS, and the Civil Procedure Code, 2074 BS, also contain provisions related to conflict of interest. 

Nepal has ratified the United Nations Convention against Corruption. Nepal had committed to making legal provisions to control conflict of interest in the National Action Plan prepared in 2069 BS for the implementation of the Convention. On this basis, the Government of Nepal has prepared a bill on conflict of interest in 2080 BS, defining the issue of conflict of interest as an offense for the first time.

In the bill, the benefit or interest of an individual, his or her family, with the exception of public interest and concern, is considered as 'private interest'. The draft states that if a person in a public position takes any action or decision with personal interest, concern or interest, it is considered to be a conflict of interest. Two basic provisions in the bill are important. First, if corruption occurs due to conflict of interest, it is envisaged to be punished more severely. Second, the bill includes provisions to discourage even if a party has taken undue advantage of a conflict of interest but corruption is not apparent. 

Similarly, the proposed bill also mentions prohibited acts. The bill states that those in public office will have to recuse themselves from the decision-making process on matters where a conflict of interest is apparent. There is a provision that if a person in public office makes a decision regarding a conflict of interest, it will automatically be nullified. It is proposed that the matter that is nullified in this way will be re-run from the beginning. The proposed bill states that this matter will also apply to elected representatives, employees, and judges. 

The way forward 

Policy-making that is friendly to vested interests should be stopped. Past experience shows that concerned MPs or officials are directly involved in the formulation or amendment of laws in sensitive areas such as financial institutions, education, and health. The National Independent Party has won about a two-thirds majority in the elections held on Falgun 21. In this situation, the government formed needs to take some concrete steps to control the conflict of interest. The first thing for this is that the party should adopt a policy of not appointing people with a conflict of interest to such positions. In addition, conflict of interest is not just a matter of personal conduct, it is also a serious legal problem caused by corruption and a question of the fairness of governance. 

Direct involvement of ministers, local level public representatives, and employees in the policy-making and implementation process with their professional interests is the main reason for making state bodies ineffective and weakening governance. Such distorted practices have been reducing citizen trust in democratic institutions. The Rashtriya Swayamsevak Sangh (RSS) needs to pay attention to this. 

In this situation, it is necessary to take immediate action to control conflict of interest in Nepal. First, the bill on conflict of interest drafted by the Law Commission should be passed by the next parliament immediately. Second, policy-making that is friendly to vested interests should be stopped. Past experience shows that concerned MPs or officials are directly involved in the formulation or amendment of laws in sensitive areas such as financial institutions, education, and health.

This has led to policies being friendly to vested interests. यस्तो समस्याबाट नीति निर्माण कार्यलाई जोगाउन आगामी दिनमा संसदीय समितिमा सदस्य नियुक्त गर्दा स्वार्थको द्वन्द्व परीक्षण वा सार्वजनिक सम्परीक्षण अनिवार्य गर्ने व्यवस्था गरिनुपर्छ । साथै, प्रत्यक्ष स्वार्थ भएका सांसदलाई सम्बन्धित समितिमा सदस्य रहन नपाउने गरी बलियो नियमावली तयार पार्नुपर्छ ।