Prevention of Corruption Act, 2002

Punishment for Other Persons Causing Revenue Leakage: Any person other than a public servant who in any manner influences, helps, abets, or derives benefit by committing an offence of revenue leakage under section 7 shall be punished as the principal offender under the same section. 8. Punishment for Acting with Mala Fide Intention to Cause Unlawful Benefit or Loss: (1) If any public servant, with mala fide intention to cause unlawful benefit to himself or any other person, or to cause unlawful loss to Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. the Government of Nepal, Provincial Government, Local Level, or public entity, does any of the following acts, then depending on the gravity of the offence, he shall be punished with imprisonment from three months to three years and, if the loss is known, with a fine according to the loss and the loss shall be recovered; if the loss is not known, with imprisonment from three months to three years and a fine from ten thousand rupees to fifty thousand rupees:-

(a) Showing an abnormally increased or decreased amount of work or cost without any basis of verification when conducting a feasibility study of a project or preparing an estimate,

(b) Using or permitting the use of construction materials of lower quality than the prescribed standard, or certifying or approving that such materials used are of the prescribed standard,

(c) Reducing the quality of construction work, changing its size or form, or carrying out or causing to carry out construction work contrary to the prescribed terms and standards, without reasonable cause, or certifying or approving that such construction work is of quality and in accordance with the terms and standards,

(d) Without reasonable cause, abnormally increasing the cost estimate and then carrying out or causing to carry out work,

Added by the First Amendment.(d1) Determining or causing to determine terms and standards, or fragmenting or causing to fragment, or packaging or causing to package procurement work, contrary to the prevailing law on public procurement, with the intention of knowingly rendering competition ineffective, limited, or weak,

Added by the First Amendment.(d2) Mala fidely evaluating or re-evaluating bids contrary to the terms and standards already approved,

Added by the First Amendment.(d3) Mala fidely altering the already approved terms and standards and awarding a contract,

Added by the First Amendment.(d4) Purchasing machinery, equipment, or apparatus without approving the procurement plan,

Added by the First Amendment.(d5) Inviting bids without ensuring the source of funds,

Added by the First Amendment.(d6) Cancelling procurement proceedings or re-inviting bids except as per prevailing law,

Added by the First Amendment.(d7) Mala fidely preparing or causing to prepare drawings, designs, and detailed project reports for any public construction procurement work contrary to the approved standards, or in a manner causing loss to the Government of Nepal, Provincial Government, or Local Level,

Added by the First Amendment.(d8) A consultant submitting or causing to submit false reports or details in the work of public procurement, construction, and supervision,

Added by the First Amendment.(d9) Doing or causing to do any act contrary to the prevailing law on public procurement and the terms, standards, and provisions mentioned in the procurement agreement.

(e) Making false bills or receipts and taking or making payments, or taking or making double payments of bills,

(f) Without reasonable cause, purchasing or causing to purchase goods abnormally in excess of what is necessary,

(g) Conducting or causing to conduct an abnormal appraisal of government or public entity property or public property,

(h) Unlawfully registering, possessing, or using government or public property in one's own name or in the name of another, or causing to do so,

(i) When required to take any property as mortgage in the name of the government or a public entity, making or causing to make an abnormally high appraisal of that property compared to its actual value,

(j) When purchasing goods, purchasing or causing to purchase goods of inferior quality, expired, or at an abnormally high price.

(2) If any public servant fails to return, without reasonable cause, within the prescribed time, any instrument or facility obtained by virtue of his official status after such status has ceased, then such instrument or facility shall be taken back, and depending on the gravity of the offence, he shall be liable to a fine from one thousand rupees to five thousand rupees.

(3) If any public servant, by doing any act other than those mentioned in sub-sections (1) and (2), mala fidely causes or causes to cause any type of loss or damage to government or public property, then depending on the gravity of the offence, he shall be punished with imprisonment for up to two years, or a fine according to the loss, or both.

(4) If any person other than a public servant, with mala fide intention to cause unlawful benefit to himself or any other person, fails to comply with the terms of an oath, undertaking, agreement, contract, license, permit, declaration, or dealership made before Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. the Government of Nepal, Provincial Government, Local Level, or public entity, or carries on business in a manner prohibited by prevailing law by violating the rules or procedures prescribed by the Government of Nepal, Provincial Government, Local Level, or such entity, or the terms accepted by it, or misuses the facility or rights of the government or such entity, then depending on the gravity of the offence, such person shall be punished with imprisonment for up to two years, or a fine according to the loss, and the loss shall also be confiscated.