PARTICIPANTS’
PAPERSRESOURCE
MATERIAL SERIES
No.86
A SUMMARY OF ANTI-CORRUPTION MEASURES IN NEPAL
Mahesh Sharma Poudel*

I. INTRODUCTION
Corruption is a transnational phenomenon that affects all societies and economies. It is the enemy of ruleof law, human rights and development. It hinders democratic institutions, civilization and social values. It
adversely affects the justice system and equality and creates bias and prejudice. It jeopardizes transparency,
accountability and good governance.
Nepal has introduced preventive and promotional measures along with punitive/correctional measureswith respect to corruption control. But preventive and promotional measures are not entirely used. Punitive
measures are concerned with criminal justice. In this paper, I try to explain and analyse the corruption
scenario, anti-corruption laws and institutions, their drawbacks, United Nations Convention against
Corruption (UNCAC) compliance, problems of criminal justice related to corruption and the way forward to
curb corruption in a Nepalese perspective.

II. SITUATION OF CORRUPTION IN NEPAL
Corruption is a single word, but it has several forms. Corruption may be monetary or non-monetary.
Bribery, embezzlement, fraud and extortion are main forms of corruption. All these forms of corruption arepresent in Nepal. Nepotism and favoritism are deeply-rooted in Nepalese culture. Not only petty but also
grand political and bureaucratic corruption are being committed in Nepal. Similarly, the nature of systematicor state corruption along with isolation corruption is widespread. “There is no doubt that corruption is themain problem in Nepal”.1
DFID identifies fraud and corruption as one of the key risks in Nepal and says that corruption has been“endemic in Nepal for decades”. Professor Moore said "I have rarely seen as corrupt a country as Nepal”;2“Corruption is an old scourge in Nepal as anywhere else. Corruption in Nepal poses a complex challenge toits people and their leaders.”3
Almost all spheres i.e. the public, political and private sectors have been infected by corruption in Nepal.
So, the cabinet, judiciary, civil service, politicians, police, army, non-governmental organizations, and theprivate sector etc. are seriously affected by the virus of corruption. It has been claimed that justice is being
exchanged for money. The criminal investigation, prosecution and adjudication process are deeply affectedby corruption. Nepal’s low score in the Corruption Perception Index is evidence of the above-mentioned
facts.

*Joint Government Attorney, Office of the Attorney General, Nepal.
1 Devendra Raj Pandeya , Democracy and Corruption, Liberal Democracy Nepal, vol.1, No 2, 2005.
2 House of Commons International Development Committee, DFID's Program in Nepal, Six Report of Session2009-10, vol. 1
at 18.
3 Devendra Raj Pandeya , Corruption as a Problem in Nepal, www.tinepal.org

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Year
2010
2009
2008
2007

Score
2.2
2.3
2.7
2.5

Rank
146
143
121
131

Table 1. Nepal’s score in the Corruption Perception Index 4

III. ANTI -CORRUPTION LEGAL FRAMEWORK IN NEPAL
A. Constitutional Arrangement
The Interim Constitution of Nepal sets up the Commission for Investigation of Abuse of Authority(CIAA) as constitutional body. All arrangements for its independence and competency are also managed by
the Constitution. CIAA consists of the Chief Commissioner and such number of other Commissioners as
may be required. They are appointed by President on the recommendation of the Constitutional Council
after a parliamentary hearing. The Commission is empowered to inquire into, and investigate, any abuseof authority committed through improper conduct or corruption by a person holding any public office. The
Commission is entrusted with the power of prosecution too.
B. Anti-Corruption Law
The first legislative attempt to enact a specific counter-corruption law was made as early as 1864 A.D. aspart of the Muluki Ain (Country Code), the first law of the code of Nepal. A section of this code, called the
Hakimko Nauma Karaune Ko Mahal (Chapter on the complaints against officers) provided a mechanism for
redress against a civil servant who collected bribes from among the people.5 A separate anti-corruption law
was enacted in 1954. The present anti-corruption law was enacted in 2002, and replaced the previous law. It
has more sophisticated provisions and a wider scope. Besides this law, other laws were also enacted in 2002.
In fact, the enactment of these laws is an important and landmark step to create a competent anti-corruption
legal regime. In addition to the above-mentioned, a series of anti-corruption laws have been passed. Let me
briefly introduce the laws related to anti-corruption in Nepal.
1. Corruption Prevention Act, 2002
It is the principal anti-corruption law of Nepal, which criminalizes the acts that have been defined as
crimes. Both substantive and procedural matters are incorporated in this law. Moreover, roles, powers andprocedures of investigation agencies and officers are also made responsible for some required jobs within
the Act.
2. Commission For Investigation of Abuse of Authority Act, 1991
This is procedural law related to CIAA procedure. The Act not only defines improper conduct but
provides the CIAA with significant power. The Act categorically states that the CIAA has the power toinvestigate on the basis of a complaint of a particular person or information from any source. The CIAA
may take the statement of the suspect or any person deemed necessary. Similarly, the Commission has also
power to search and seize, suspend the suspect from his or her post of public responsibility and arrest/detain
the suspect for a maximum of six months with the competent court’s consent.
The CIAA Act has also given authority to the CIAA to access bank accounts and other financialtransactions. In addition, it may seize the passport of a suspect and also order area restriction against
suspect.
3. Judicial Council Act, 1991
This Act relates to appointment and diciplinary action of judges. It also provides power to the Judicial
Council to investigate and prosecute the judges of District Courts and Appellate Courts, on the charge ofcorruption.
4 www.tranparency.org

5 Bhimarjun Acharya (editor), Annual Survey Of Nepalese Law 2001, Nepal Bar Council, Kathmandu at 211.

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4 Special Court Act, 2002
The Special Court Act has been enacted to deliver speedy and effective justice in special types of cases.
The Special Court is empowered to exercise jurisdiction over cases related to the Corruption and AntiMoney Laundering Act.
5. Revenue Leakage (Investigation and Control) Act, 1995
This Act is related to tax leakage by tax payers. The Act pertains to the role and procedure of
Department of Revenue Investigation with regard to investigation and prosecution.
6. Good Governance (Management and Operation) Act, 2007
Good governance and corruption are opposite concepts. Good governance prevents corruption. This Act
has made many provisions regarding good governance which are valuable in preventing corruption. It statesthat all civil servants and personnel of all public institutions have to follow a code of conduct. The Act also
incorporates a provision regarding managing of conflicts of interest to some extent.
7. Anti-Money Laundering Act, 2008
The Act has provided measures to take comprehensive legal action against money laundering andfinancing of terrorism. The Act criminalizes the earning, acquiring, holding, possession, involvement or
consumption of proceeds from tax evasion, terrorist activities and other crimes and provisions. Recently, it
has been amended and incorporates various provisions for the control of money laundering.
8. Rights to Information Act, 2007
Transparency is the most important aspect to curb corruption. The said Act has made comprehensive
provision with respect to rights to information. Detailed processes and ample provisions when information isdenied are also included in the Act.
9. Public Procurement Act, 2007
The Act establishes appropriate systems of procurement, based on transparency, competition andobjective criteria in decision making, that are effective, inter alia , in preventing corruption. This Act
is enacted to prevent irregularities in the procurement process as well as setting standards in suchproceedings. In fact, the Act is enacted in line with UNCAC provisions.
10. Army Act, 2006
As per this Act, any crime of corruption committed by army staff is investigated and prosecuted bya three-member committee headed by the Deputy Attorney General. Other members of the committee
include an officer working at the Defense Ministry and member of legal department of Nepal Army. Suchcases are adjudicated in a three-member Special Military Court which is headed by an Appellate Court
Judge.
11. Regulation
Several regulations have been made as delegated legislation. Basically, these regulations have createdcomprehensive procedural matters. CIAA regulations and a regulations-related Vigilance Centre areprominent in this regard.

C. Anti-Corruption Strategy
Control of corruption is not possible without a systematic, strategic campaign against corruption. Several
plans and policies have been made in Nepal at national and institutional level to curb corruption. I would liketo outline briefly these strategic plans.
1. Three Year Plan (2010/11-2012/13)
The planned development was introduced in Nepal on 1956 has crossed five decades. Now Nepal has athree year plan. In this plan Nepal has made a strategy to strengthen and reform corruption-control-related
legal systems and administrative structures in consonance with the commitment made by the international
community through the UNCAC.6
6 Government of Nepal, National Planning Commission, Three Year Plan Approach Paper (2010/11-2012/13) at 178.

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2. Strategic Action Plan of Nepal Government
The Nepal Government issued its strategic action plan in 2009. This plan has 13 point strategies
and more than one hundred activities to curb corruption. Key points of the plan are: a competitive andaccountable public service; the commercial and banking sector’s economic discipline; policy and law for
private sector corruption; reform (law, policy, work style); a responsive, result-oriented anti-corruption
movement through monitoring; usage reform (minimum cost in social usage); promotional activities; peopleoriented local authorities; transparency in political parties’ expenditure; transparency; zero tolerance;
independent public management; integrity; organizational capacity building; national interest in foreign
investments; and transparent and accountable NGOs.7 In principle, these strategies are very sound, whereas
their implementation is very poor.
3. Institution-wise Action Plan of Nepal Government
The Nepal Government published its Institution-wise Action Plan to combat the corruption on theoccasion of Anti-Corruption Day 2010. It is the additional and complementary action plan to the Strategic
Action Plan of the Nepal Government. Basically it has focused on activities that should be taken by the major
components and institutions of the Nepal government within a certain period of time.
4. Three Year Strategic Plan of the CIAA (2010/11 - 2012/13)
CIAA has also drafted a three year action plan to execute its responsibilities. Effective and reliable
information collection and analysis regarding corruption; speedy and accurate investigation of corruption andimproper cases; effective implementation of verdicts of the CIAA; coordination of anti-corruption agencies;
transfer of Corruption Prone Zones into Islands of Integrity; monitoring the implementation of codes ofconduct of the public sector; and effective conduct of anti-corruption awarness programmes are major
strategies of the CIAA.
5. Five Year Strategic Plan of the Office of teh Attorney General (OAG) (2011/12 - 2015/16)
The Office of the Attorney General also has its own five year strategic plan. This strategic plan fully
focuses on reforming and strengthening the criminal justice system. Several strategies are formulated,
e.g. reform and development of investigation, prosecution, pleading, and capacity building of the OAG.
In addition to the above-mentioned, the strategic plan also focuses on corruption control issues andhas set up several strategies. The UNCAC and Nepal’s challenges for implementing it are critically andcomprehensively analysed in the Strategic Plan of Action.8 Establishment of a separate anti-corruption
department in the OAG for pleading and defending corruption cases, and posting experienced personnel inthis department to lobby for the enactment of new laws which are essential to implementing the UNCAC aresome examples of this strategic intervention related to corruption control.
6. Five Year Strategic Plan of the Judiciary (2009/10 - 2013/14)
The judiciary is the major component of criminal justice system. Corruption control is not possible
without reforming the judiciary. In this juncture, the judiciary also has its own strategic plan. This plan has
categorically set several strategies. Proper and effective implementation of codes of conduct for judges andcourt personnel; development of the mechanism to hear complaints of irreguralities found in court; andmaintaining financial dicipline and transparency related to corruption control.9

IV. ANTI-CORRUPTION INSTITUTIONAL ARRANGEMENTS IN NEPAL
A. Commission for the Investigation of Abuse of Authority
The Commission for the Investigation of Abuse of Authority Nepal is an apex constitutional body to curb
corruption and its tentacles in the country. Articles 119, 120 and 121 of the Interim Constitution of Nepal,
2006 have empowered the CIAA to investigate and probe cases against persons holding any public office andtheir associates who are indulged in the abuse of authority by way of corruption and/or improper conduct.
The CIAA is the distinctive anti-corruption agency in South Asia, which plays the role of an ombudsman,investigator and prosecutor as well. It aims to crack down on corruption issues at a national level with a
7 www.opmcm.gov.np

8 Five Year Strategic Plan ( 2011/12-2015/16) of the Office Of the Attorney General, Nepal, at 34.
9 Five Year Strategic Plan of the Judiciary ( 2009/10- 2013/14), Nepal at 72.

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system-based approach. It also focuses on detection and punishment of corrupt acts on one hand and social,
cultural and institutional reform on the other.10
Particulars 2001/02
CIAA
102
Meetings
Nos. of245
Decisions
Total
2522
Complaints
Resolved
2015
Cases
61
Filed
Departmental
18
Actions
Warning
15
Attention
27
Drawn
Suggestions
50

2002/03
117

2003/04129

2004/05160

2005/06192

2006/07145

2007/08164

2008/09212

2009/10
154

219

351

401

482

382

427

637

465

3966

3732

4759

4324

3564

2732

4149

4295

2481
147

3188
93

3709
113

3353
114

2976
115

2135
70

3303
50

3067
27

25

38

39

45

26

28

29

13

25
9

24
3

42
6

19
6

16
13

19
13

22
17

11
18

22

20

22

13

96

13

107

75

Table 2. Facts and Figures on CIAA Activities11
However, the Commission has some limitations to its jurisdiction. The Commission has no jurisdiction infollowing areas:• Any official in relation to whom this Constitution itself separately provides for such action and to any
official in relation to whom any other law provides for separate special provision. This Constitutional
provision provides that the CIAA has no jurisdiction over chiefs and members of constitutional
bodies, judges and armies.
• Policy decisions made by the cabinet.
• Issues of Parliamentary privileges.
• Private Sector Corruption.

B. Office of the Attorney General
The Attorney General is one of the most important constitutional bodies under the Constitution of Nepal
and has been empowered to make the final decision whether or not to initiate proceedings in any case on
behalf of the government in any court or judicial authority. The Attorney General is the chief legal adviserof the government and has the right to appear and present his or her legal opinion on any legal questionin any meeting of the legislature-parliament, the constituent Assembly or any other committees. The
Attorney General has been assigned for representing the government in a court of law in cases in which theState is party or in suits where in the rights, interest or concerns of the government of Nepal are involved.
The cadres of the AG’s office have also been deputed at various government offices and constitutional
bodies, viz. the Commission for the Investigation of Abuse of Authority, and the Election Commission.
The government attorneys have been assigned to the CIAA to carry out investigation and prosecutionof corruption cases. In this way, government attorneys and the OAG are not only leading agencies of thecriminal justice system but also major agencies of corruption control. Similarly, the CIAA has delegated its
power to 75 District Attorney Offices and 15 Appellate Attorney Offices.

10 www.ciaa.gov.np

11 Different Annual Reports ( 2001/02- 2009/10) of Commission for the Investigation of Abuse of Authority.

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Year
005/06006/07
007/08008/09009/10Supreme Court
190
187
158
193
260

Special Court
332
344
249
250
181

Total
522
531
407
443
441

Table 3. No. of cases pleaded/represented by Government in the Special and Supreme Courts12

C. Court
Corruption cases are adjudicated by the Special Court. The Special Court is empowered to adjudicate
corruption cases filed by the CIAA at trial level. The Special Court is established under the Special Court
Act. The Special Court has the status of an appellate court so appeal jurisdiction of corruption cases goes to
the Supreme Court. Similarly, trial jurisdiction over the charge sheet of the Judicial Council against judges
rests in appellate courts.
1. Special Court
The Special Court is entrusted with the jurisdiction to hear corruption cases filed by the CIAA. Special
Court judges are deputed from the Judicial Council for a certain period.
Year
Conviction rate
in percent

004/0584.49

005/0691.5

006/0781.85

007/0886.95

008/0967.4

009/1052.9

Table 4. Conviction rate in corruption cases decided by the Special Court (in percentages)13
Disproportionate
Property
28.5

Fake certificate Forged Document bank Fraudulent
89.6

78.26

Embezzlement

Vehicle related

67.39

95

89.36

Table 5. Conviction rate verdict given by the Special Court according case nature period of 2002-201014
2. Supreme Court
The Supreme Court has appellate jurisdiction over the verdicts of the Special Court. The Supreme Court
has laid down several precedents in corruption cases within appellate and writ jurisdiction.

D. Judicial Council
The Judicial Council is an independent constitutional body headed by the Chief Justice. The Council is
responsible for recommendation and appointment of all the judges except the Chief Justice. It has also power
to investigate and prosecute the judges of District Courts and Appellate Courts in the charge of corruption.
The Council also monitors the observance of the Code of Conduct of Judges. In fact, the council has animportant role in preventing judicial corruption and irregularities.
No. of judges
resignation during
investigation
6

Removed no.
of judges afterinvestigation
5

No. of judges
warned made bycouncil6

No. of judges
charged thecorruption cases
1

Recommended for
impeachment

Total

1

19

Table 6. Action against judges taken by the Judicial Council15

E. National Vigilance Centre
The National Vigilance Centre is established under the Corruption Prevention Act. The Centre isunder the Prime Minister and headed by secretary-level officials of the Nepal government. The Centre
has no investigation authority regarding corruption. The Centre is empowered to take only preventive and
12 Different Annual Reports (005/06- 2009/10) of Office of the Attorney General.

13 Different annual reports ( 2005/05- 2009/10) of Commission for the Investigation of Abuse of Authority.
14 This data are based on analysis of verdict of special court.

15 Data are presented according to the source of the Judicial Council.

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promotional measures against corruption.

F. Army Investigation and Army Special Court
The CIAA has no jurisdiction over corruption cases related to the army. The Army Act provides thatany crime of corruption committed by army staff is investigated and prosecuted by a three-member
committee headed by the Deputy Attorney General. Such cases are adjudicated in a three-member Special
Military Court which is headed by an Appellate Court Judge who is appointed by the government at therecommendation of the Judicial Council. Very few cases have been investigated and adjudicated within thesemechanisms.
G. Other Anti-Corruption Institutions
In addition to the above-mentioned institutions, several other institutions are also related to curbing
corruption to some extent. These institutions are as follows:• Auditor general• Revenue Leakage Investigation Department• Anti-Money Laundering Department• Parliamentary Committee• Public Procurement Monitoring Office• Appellate Government Attorney Office• District Government Office• Regional Administration Office• District Administration Office.
V. INVESTIGATION, PROSECUTION & ADJUDICATION OF
CORRUPTION OFFENCES IN NEPAL
A. Investigation
CIAA is responsible for investigation and prosecution regarding public sector corruption at large extent.
However, CIAA jurisdiction of investigation and prosecution of judges and army is excluded and othermechanisms are established.
The complaints lodged with CIAA are settled in accordance with the procedures laid down in the CIAAWorking Procedure, 2001. The investigation process is divided into two stages: (i) Preliminary Inquiry; (ii)
Detailed Investigation.
During the preliminary inquiry, the complaints are analysed with regard to their merit and the firsthand available evidence. At this stage, the designated Investigation Division of the CIAA Secretariat works
with to collect most of the possible evidence. If at this stage CIAA finds a prima facie case, it appoints an
Investigation Officer for detailed investigation. While carrying out a detailed investigation, the Investigation
Officer collects evidence, makes all necessary inquiries and analyses the findings. Upon the completion of
the specified procedures, the Investigation Officer submits a report of his findings before the Commission.
Such report shall be reviewed by the Commission and a decision to this effect shall be taken.
The CIAA has power to investigate on the basis of written, verbal, telephone and online complaints,
media sources, its own intelligence, or information from any source. The CIAA is empowered to takestatements of the suspect or any person deemed necessary; to search and seize as needed; to access bankaccounts and other financial transactions; to withhold transactions in accounts, or the property of a suspect;
to seize the passport of the suspect and also order area restriction against a suspect.

B. Prosecution
The CIAA is empowered to prosecute corruption offences. Based on the findings of its investigation,
the Commission may prosecute cases against persons alleged to have committed corruption in the Special
Court.
C. Adjudication
The Special Court is empowered to adjudicate corruption cases filed by CIAA in trial level. The Special
court is established under the Special Court Act and it follows the special procedure laid down in the Special

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Court Act. The Special Court has the status of the appellate court so appeal jurisdiction of corruption cases
goes to the Supreme Court.

VI. COMPLIANCE WITH THE UNITED NATIONS CONVENTION AGAINSTCORRUPTION 2003
A. General Introduction
The United Nations Convention against Corruption (UNCAC) is the most comprehensive internationalanti-corruption convention to date as it covers the broadest range of corruption offences, including theactive and passive bribery of domestic and foreign public officials, obstruction of justice, illicit enrichment
and embezzlement.16 This Convention incorporates crucial elements of the fight against corruption, suchas preventive measures, criminalization, protection of sovereignty, sanctions and reparations, confiscationand seizure, the liability of legal persons, protection of witnesses and victims, international cooperationin extradition and in the repatriation of property and money, the transfer of funds derived from acts ofcorruption, assets and money, and the exchange of information between Governments and nations. 17
Nepal signed this convention on 10 December 2003, and ratified it on 24 February 2011. To properly
implement the UNCAC, the Government formed a high-level steering committee under the chairmanship ofChief Secretary of the Nepal Government. Similarly, at working level, another working group has also been
formed under the chairmanship of the Secretary of the Prime Minister’s Office. It is my pleasure to be amember of such taskforce.

B. Prevention
Corruption can be prosecuted after the fact, but first and foremost it requires prevention. An entire
chapter of the United Nations Convention against Corruption is devoted to prevention, with measuresdirected at both public and private sectors.18
Several policies have been taken for prevention of corruption. Three year strategic plan of country, anticorruption strategic and action plan of Nepal government, institutional working plan of Nepal government,
three year strategic plan of CIAA are major policy concerns to anti corruption. Good Governance Act,
Anti-Money Laundering Act, Rights to Information Act, Public Procurement Act etc. have already beenenacted. Largely institutional arrangements have been made. CIAA, OAG, Courts, Army Special Court,
Judicial Council, National Vigilance Centre, Auditor general, Public Service Commission, Revenue leakage
Investigation department, Parliamentary Committee, Public Procurement Monitoring Office, Regional
Administration Office, District Administration Office, Public Prosecutorial Office at district and appellate
level are already set up.
However, provision incorporated in these documents need to be revised and properly implemented.

C. Criminalization
UNCAC has set international standards of criminalization. These are bribery of national public officials,
bribery of foreign public officials and officials of public international organizations, embezzlement,
misappropriation or other diversion of property by a public official, trading in influence, abuse of function,
illicit enrichment, bribery in the private sector, embezzlement of property in the private sector, laundering ofproceeds of crime, concealment, obstruction of justice, liability of legal persons.
Corruption Prevention Act, 2002 has largely defined corruption offences recommended in UNCAC tocriminalize by domestic law. Following activities are defined as corruption crime and made punishable:••••

Giving or receiving bribe to or by the public official or other person (active & passive bribery inpublic sector);
Accepting goods or service free of cost or at lower price by the public official;
Unlawfully receiving gift by the public official;
Getting commission in public purchase by the public official;

16 OECD, Glossaries, Corruption, A glossary of international standards in criminal law, 2008 at, 14, www.oecd.org/publishing/corrigenda
17 UNODC, Global Action against Corruption , The Merida Papers, 2004 at 4.

18 UNODC, COMPENDIUM OF INTERNATIONAL LEGAL INSTRUMENTS ON CORRUPTION, Second edition, 2005, at 1.

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•
•
•
•
•
•
•
•
•
•
•
•
•
•

Causing loss in revenue by the public official;
Getting illegal benefit or causing illegal loss by the public official;
Preparing of false documents by the public official;
False translation of documents;
Tampering with government documents;
Causing damage to Government or public documents;
Disclosing secrecy or question papers of examination;
Engagement in illegal trade or business by public official;
Claiming false designation;
Submitting false information about oneself for getting or staying in a public post;
Damaging public property;
Pressure to commit crimes;
Providing a false report;
Attempts and assistance.

However, Nepalese law fails to define some acts as crimes. Bribery in the private sector, punishmentof legal persons, embezzlement of property in the private sector, and bribery of foreign public officials andofficials of public international organizations need to be criminalized.

D. International Cooperation
Under Chapter IV of the UNCAC, States Parties are obliged to assist one another in every aspect of thefight against corruption, including prevention, investigation, and the prosecution of offenders. Particularemphasis is laid on mutual legal assistance, in gathering and transferring evidence for use in court, andextradition of offenders.19
Nepal has no proper legal and institutional mechanism for international cooperation. In fact, Nepal
is in very lacking in this perspective. For international cooperation, Nepal needs to make bilateral andmultilateral treaties and reciprocal activities as well as enactment of new laws. Laws related to mutual legal
assistance, asset recovery, joint investigation, extradition, execution of verdicts of foreign courts, have to be
immediately enacted for compliance with the UNCAC.
Moreover, central agencies for the purpose of mutual legal assistance and extradition should beestablished promptly.

E. Asset Recovery
The UNCAC is the first globally negotiated treaty which is universally applicable for fighting corruption
and explicitly includes asset recovery as a fundamental principle.
Nepal has no legal or institutional mechanisms for the fulfillment of UNCAC provisions. Similarly,
Nepal has no treaty in this regard. So Nepal needs to make bilateral and multilateral treaties and reciprocal
activities to fully implement the UNCAC asset recovery provisions. Similarly Nepal has to enact legislation
regarding asset recovery.

VII. BEST PRACTICES OF ANTI-CORRUPTION MEASURES IN NEPAL
Several provisions and mechanisms are attractive and persuasive. Such best provisions are listed out as
below:• Independent and competent Constitutional body (CIAA) for investigation and prosecution, along withombudsman role as multifunctional anti-corruption agency;• Establishment of several anti-corruption agencies, including the Vigilance Centre for preventive
measures;• Separate Special Court for adjudication of corruption cases at trial level;• Criminalization of various activities as corruption, to a large extent;• Burden of proof on defendant in illicit enrichment cases;
19 Highlights of the UN Convention against Corruption, http://www.unodc.org/unodc/en/treaties/cac/convention-highlight.html

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•
•
•
•
•
•
•
•
•
•
•

Annual declaration of property by public officials;
Imprisonment is mandatory in most corruption cases;
Additional punishment for high-ranking officials;
Code of conduct for all public officials;
Enactment of several new laws that strengthen good governance and reduce corruption, viz; Good
Governance Act, Public Procurement Act, Information Act, Anti-Money Laundering Act, etc;
Constitutionally independent Public Service Commission to recruit public officials;
Independent Constitutional Commission for public sector audit;
Anti-corruption strategic plan at government, CIAA and other institutional levels;
Establish of Procurement Monitoring Office;Community education programme, radio programme for public awareness;
High level working group for the implementation of the UNCAC.

VIII. CORRUPTION-RELATED CRIMINAL JUSTICE PROBLEMS IN NEPALThe Nepalese criminal justice system has been facing various problems; criminal justice relatedcorruption is no exception. Major weaknesses or drawbacks regarding corruption in the criminal justicesystem are listed below.

A. Problems Related to Investigation and Prosecution
Investigation and prosecution have been conducted by the CIAA in Nepal. However several limitations arefound with respect to CIAA jurisdiction. Major problems regarding investigation and prosecution are as below:• Inadequate laws;• Lack of well-trained human resources and a traditional working style;• Exclusion of CIAA jurisdiction for officials in relation to whom the Constitution and any otherlaw separately provides for action; policy decisions made by the cabinet; issues of parliamentary
privileges and private sector corruption;• Absence of CIAA local level offices;• Low level of public trust in the CIAA;• The office of the CIAA Commissioner has long been vacant;• Appointment practice of commissioner on the basis of political parties’ recommendation rather thanqualifications;• Raises the question of integrity and impartiality of investigative authorities;• Political instability and lack of political commitment to corruption control;• CIAA lacks a separate service law and its own staff;• Non-existence of joint investigation legal mechanisms;• Absence of special investigation techniques;• Unavailability of legal provisions regarding transfer of criminal proceedings;• Political criminal nexus.
B. Problems Related to Adjudication
The Special Court at trial level and the Supreme Court at appeal level are responsible for adjudication.
Various problems are known in relation to adjudication. These are as below:• Delay in adjudication;• Absence of a preferential track in the Supreme Court;• Motive of bench selection by defendant;• Reluctance of judges to decide corruption cases;• Unreasonably long pleading practice;• Lengthy court procedure;• Lack of most important legal provision, viz; mutual legal assistance, witness protection,
implementation of foreign verdicts, etc.;• Lack of well updated, skilled and expert court personnel, and a traditional working style as well;• Questions are raised from time to time about the integrity of judges;• Unsatisfactory conviction rate.

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C. Inadequate Laws
Laws are the main instrument of the criminal justice system. Various laws related to anti-corruption
have been enacted but still these are not adequate. To bring the criminal justice system in accordance withinternational standards and to fully implement the UNCAC, various laws are to be enacted. Similarly, dozensof laws are not consistent with the UNCAC and they have to be amended.
D. Lack of Essential Anti-Corruption Agency
Nepal has various anti-corruption agencies, but these are not sufficient to mitigate the requirements ofthe global era. A central mutual legal assistance agency, and an effective and competent separate financial
intelligence unit are urgently needed.
E. Capacity Building
Nepalese anti-corruption agencies are very much traditional in nature. Their working style and capacity
as well as mindset are very traditional. Transfer of the investigation, prosecution and adjudication system istraditional and they are to be made more scientific, which is a major challenge.
F. Implementation of UNCAC and Fulfillment of its Basic Requirements
Recently, Nepal ratified the UNCAC and UNTOC. Ratification is not sufficient, but it needs effective
implementation. Implementation of these conventions is also an international obligation of Nepal. To fulfill
implementation of this instrument, institutional, policy, legal and administrative requirement have to be
fulfilled. But Nepal is facing absences of requirements in this regard.
G. Influence of Accused
Corruption is considered a white-collar crime. It is transnational organized crime. So, those accused ofcorruption crime are often more powerful than other defendants and they can exert influence in the criminal
justice system.
H. Problem related to Assets Recovery
The asset recovery process needs several steps. Firstly, proceeds should be traced and identified by
the requested state. The second step is to freeze and seize the assets to prevent their removal. Then theprocess may follow to confiscate the assets and finally to repatriate them to the requesting state. In theabsence of any treaty and legal provisions governing the granting of mutual legal assistance and asset
recovery, Nepal cannot render MLA relating to proceeds of corruption.
IX. THE WAY FORWARD
A. Enactment of Adequate Laws
This is the era of globalization. In globalization, crimes are also becoming globalized and they must be
curbed. Criminal justice should also be globalized. Laws relating to anti-corruption should be enacted andamended with this view.
Laws relating to private sector corruption, protection of witnesses, experts and victims, as wellas protection of reporting persons, mutual legal assistance, liability of legal persons, asset recovery,transparency of political parties, income and expenditure, joint investigation, extradition, execution ofverdicts of foreign courts and legislation related to conflict of interest should be enacted.
Similarly, some laws need to be amended, i.e. the Corruption Prevention Act, CIAA Act, acts related toinsurance, bank and finance, laws related to local government, laws related to election, different service
laws, etc.

B. Institutional Set Up and Reform
The CIAA has no local offices and it very difficult to investigate corruption at local level. So
establishment of CIAA offices at least at the regional level is imperative. Similarly, several institutions
should be set up promptly, such as a central agency for the purpose of mutual legal assistance andextradition, and a specific and separate financial intelligence unit etc. In addition to new arrangements ofinstitutions, institutional reform and capacity building of the CIAA, OAG and courts is imperative.

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C. Speedy Justice
Speedy justice is guaranteed by several international human rights instruments. The Nepalese justicesystem is lagging behind. To overcome this obstacle, procedures relating to investigation and adjudication
should be shorter. For this purpose, procedural law may need to be amended. Similarly, time frames given bylaw should be followed. Priorities to hearing corruption, discouragement of unnecessarily long pleadings andbench choices are other measures to speedy justice in corruption cases.
D. Proper Implementation of International Obligations
Nepal should take necessary arrangements to fulfill the international obligations. The UNCAC should
be properly implemented and all requirements for full execution of it should be made. Nepal should givepractice international cooperation and asset recovery.
E. Effective Investigation
Prosecution depends on investigation and adjudication depends on prosecution. So to ensure a highconviction rate, investigation should be effective, without any errors and based on facts as well as evidence.
F. Expansion of CIAA Jurisdiction
The CIAA has some limitations of jurisdiction. The CIAA should have jurisdiction to investigate andprosecute cabinet decisions. Similarly jurisdiction of CIAA over all public officials should be established in a
new constitution.
G. Execution of Anti-Corruption Strategies
Anti-corruption strategies have to be properly implemented to systematically combat corruption.
X. CONCLUSIONS
Corruption in Nepal is chronic. Anti-corruption laws, institutions and policies have been set up to combat
corruption, yet it increases day by day. Lows political commitment, low priority on corruption control,
an ongoing transitional period, non-execution of anti-corruption strategies, a lack of strong stakeholders
like civil society and media, and a lack of adequate awareness programmes are some causes of increasing
corruption in Nepal.
There is no single measure to control corruption. New trends are emerging to combat the menace ofcorruption. A focus on preventive measures along with punitive and promotional measures; international
cooperation; expansion of area of control into private sector; conviction of legal persons along with natural
persons; focus on participation of stakeholders during anti-corruption activities and expansion of corruption
control efforts in the international arena are the key emerging corruption control trends. At this juncture,
it is worth mentioning that the preamble of the UNCAC states that “Corruption is no longer a local matter,but a transnational phenomenon that affects all societies and economics, making international cooperation toprevent and control it essential”.
Corruption in Nepal is rampant. We have to control it. Serious commitment and priority from politicalleadership is imperative. The Government of Nepal has issued an anti-corruption strategy and work plan,but its implementation has not been satisfactory. To combat corruption, this strategic plan should be fully
implemented. Similarly, the UNCAC should also be fully implemented. A national integrity system should
be built. The active participation of the OAG, Judicial Council, Special Court, and Army Special Court, alongwith the CIAA and cooperation of stake-holders alike, civil society, media and the general public is essential.
We have to follow the emerging corruption control trends. Combating corruption is not possible in isolation;
it requires an holistic approach. That is why to cure the infection of corruption, awareness programmes,
reform of social values and culture, development of morality, accountability and integrity, promotion ofgood governance, adequate salaries, poverty reduction programmes and e-governance should be launchedsimultaneously and followed with other measures. Finally, the criminal justice system has to be effective andstrong and meet international standard in corruption control mechanisms.

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