Pokhariya Municipality: The local government that has become the hotbed of organised corruption

The condition of basic service delivery is dismal at Pokhariya Municipality, the second largest local government in Parsa after Birgunj Metropolitan City. When cholera spread at the start of monsoon last year, dozens of patients admitted to the Pokhariya municipal hospital had to be taken to Birgunj for further treatment. Low-income citizens were unable to get basic treatment at their own municipality.

The municipal hospital’s pharmacy doesn’t have essential medicines. Ultrasound and X-ray machines do not come into regular use. The incineration machine purchased with grant from the provincial government has remained useless for a year and a half while the mortuary refrigerator to keep dead bodies is also not in operation.

There also appears to be a shortage of human resources. But the city police and office assistants deployed by the municipality can be met everywhere, from the hospital premises to the ward office. It is not just a coincidence that the chair of the hospital development committee is Umesh Prasad Chauhan, the brother of the Mayor Praduman Prasad Chauhan.

The situation of the education sector is not different. Being operated inside the municipality are four secondary schools, six lower secondary, and 19 primary schools. Locals complain that the quality of education at schools like Uchchangal Ramdev Kalwar Secondary that used to produce good results previously have deteriorated of late.

Former mayor Deep Narayan Rauniyar (Mantu) alleges that even vital institutions such as hospitals and schools are in disarray due to negligence and irregularities. “We had left a budget worth millions of rupees, but now they are struggling even to pay salaries to staff,” Rauniyar says. “So much so that even conditional grants received from the federal government is redirected for regular expenses.”

Nijamuddin Samani, a local leader, portrays Pokhariya municipality as a ‘hotbed of corruption’. “The budget is spent on training, photos and banners, while hardly any other work is visible and the remaining amount is justified only in paper,” he alleges.

There have been serious allegations of widespread irregularities in the appointment of officials, budget expenses, and administrative decision-making process. Records show that as many as 386 employees were appointed in the municipality between 2079 Falgun 20 and 2081 Kartik 11. Critics say that the appointments flouted protocol and involved transaction of large sums of money.

Hotbed of corruption

Banks transactions of officials such as municipality’s acting chief administrative officer Ajay Srivastav, chief of the education department Bijaya Kumar Jha, and Sandip Sah, a non-gazette first class officer (Nayab Subba) have been suspiciously linked with people and organizations with whom there’s likely to be a conflict of interest.

The irregularities are so much so that people appointed as office assistants through bribes of Rs100,000—Santosh Yadav, Meghchandra Thakur Hajam, Bittu Sah, Pappu Kumar Kanu, Jaya Karan Sah Godh, and Sachin Patel, among others—were allowed to serve as municipal police after they paid further amount.

Some of the appointees say that they had paid the bribe amount after taking a loan at up to 36 percent interest. Some have managed the amount by putting their wives’ ornaments as collateral. But they have yet to get their salaries.

In Asar 2081 BS, Jaya Karan Sah Godh, a local of Pokhariya-4, was appointed office assistant after submitting Rs100,000 to an official at the municipality office.

Upon seeing his friends serving in municipal police, he also wanted to become a policeman. He talked to the same official who had helped him get the job at the municipality. According to the official’s advice, Sah took out a Rs100,000 loan from a cooperative to serve in the municipal police.

Sah, who trained for three months and has been serving under ward 4 office, however, complains that he hasn’t received the salary and allowances yet.

“If I don’t get the salary, then I want the money I paid back with interest,” Sah said.

Likewise, Meghchandra Thakur, another office assistant at the municipality, has also paid Rs200,000 to get an appointment to serve in the municipal police. Like, Sah he also paid the amount to an official at the municipality office. “After I paid the amount, I received the paper of my appointment,” Thakur said.

Bikas Kumar Patel, an assistant with the municipality’s livestock service office, paid Rs200,000, which he had saved to go abroad, as bribe for the job. But ten months after his appointment, Patel has yet to receive his salary. “After consulting with my family who suggested to stay here if that much amount gets me a job here in the municipality. Now I neither have the savings nor a salary,” Patel said.

Jitendra Prasad Chauhan of Pokhariya-5 also paid Rs200,000 in bribe to get the job of an office assistant. He was appointed in Asoj 1, 2081 BS. “I was unemployed and heard that the municipality was hiring people,” Chauhan recalled. “I talked to an official close to the mayor and as per his instruction, I took out a loan with an interest of 3% per month and paid the amount.”

While Chauhan was promised upon appointment that he would get his salary after three months, he hasn’t received it yet. “Senior officials say I would receive the salary in lump sum but I am struggling to pay interest on the loan,” he said.

Sanjay Rauniyar of Pokhariya-5 also talked to chair of ward 4 Lakshman Sah Kanu and got the job of office assistant after paying Rs145,000 to an official as instructed by Kanu.

For fear of repercussions, these appointees didn’t reveal the name of the officials who they had paid the amount to. But looking at transaction details, we get hints that the amount was paid to someone from the municipality office itself.

Ward secretary Om Prakash Chaurasiya, who collected the money through ward officials to give the appointments, has deposited Rs573,000 to the account of chief administrative officer Ajay Srivastav in Bhadra, 2081 BS; Rs350,000 in Baisakh; Rs150,000 in Asoj; and Rs100,000 in Mangsir, altogether a total of Rs1 million and 173,000.

Srivastav the kingpin?

Our investigation has shown that Srivastav’s account at the Pokhariya branch of Agriculture Development Bank has seen large deposits on various dates since he assumed office at the municipality on Falgun 15, 2079. During this period, his account has received deposits totaling over Rs3 million 191 thousand.

The account has repeatedly received multiple amounts from municipality officials, elected representatives, suppliers, contractors and a few organizations. These transactions are suspicious because there is no basis these people would have personal relations with Srivastav. According to a bank statement, Srivastav’s account has received Rs1 million 173,000 from the secretary of Ward 2 of Pokhariya Om Prakash Chaurasiya between Baisakh and Mangsir in the year 2081.

Nayab Subba (non-gazetted first class officer in government of Nepal) Sandeep Sah, of the administration and fuel distribution department, has deposited Rs395,000 to Srivastav’s account, assistant secretary of ward Bhagwan Sah Kanu Rs125,000, and chief of employment department Bijay Sah Rs32,500.

Likewise, engineer Sumit Yadav of the technical department has deposited Rs120,000 and Arjun Thakur of the same department has deposited Rs15,000 to Srivastav’s account.

Various suppliers and contractors involved with municipality office have also deposited amounts into Srivastav’s account. Businessman Amod Kewat has deposited Rs140,000, a training providing organization called Community Development deposited Rs200,000, Archana Construction company Rs75,000, contractor Mandip Kumar Rs75,000, and another contractor Deepu Patel Rs40,000. Likewise, nursery supplier Deependra Yadav has deposited Rs50,000 into Srivastav’s account.

According to municipality officials, most of the amount was deposited either towards the end of the fourth quarter or during the payment of last installment in a fiscal year.

According to municipality officials and some victims, an amount between Rs100,000 to Rs300,000 was collected per person for the appointment of 20 people through Baliram Sah of Pokhariya.
They claim that the amount collected through Baliram Sah has reached Srivastav. Sachin Patel, appointed as a city police constable, said he deposited Rs129,000 to the account of a business firm called Basanta Art as directed by Baliram. Likewise, Bittu Sah Teli, appointed as office assistant, said he handed over Rs120,000 in cash to Baliram.

The victims say they received their appointment letter  after they paid the amounts.

About Rs6.5 million in Nayab Subba’s bank account

On 29 Jestha 2074, the Alternative Energy Promotion Centre appointed Sandip Sah for a month and deployed him at Pokhariya Municipality on the provision he’d receive a salary equivalent to that of a non-gazetted second-class officer. His appointment was extended to six months more and then another six months before he became the chief of the administration and fuel distribution department with a salary equivalent to that of a Nayab Subba (non-gazetted first-class officer).

Sah has also been accused of taking commissions from various firms and suppliers while also making appointments bypassing rule. His bank account also shows suspicious transactions.

Office assistant at supplies department Lal Bahadur Pandit has deposited a total of Rs313,000 into Sah’s account at various dates. Critics say that the amount is the commission Sah receives from various suppliers through Pandit.

Another office assistant Rajkumar Ram has deposited Rs300,000 into Sah’s account. Shortly afterwards, Ram was appointed as ASI at municipal police.

Likewise, Arjun Thakur, a sub-engineer under contract, has deposited Rs150,000 to Sah’s account. After the deposit, Thakur was promoted to the post of engineer and after that he further deposited Rs400,000 to Sah’s account.

Saddam Hussain—son of Nurul Ain Miya Teli, who is the owner of Sad Fashion Stores in Pokhariya, has deposited Rs500,000 to Sah’s account. Likewise, ‘All of Suppliers’ owner Amod Kewat deposited Rs120,000 to Sah’s account last year’s Jestha and Asar. Employees under contract Upendra Mahato Kewat deposited Rs100,000; and Mukesh Kanu Rs50,000 to Sah’s account. Kewat and Kanu were appointed to a job in the municipality office after the deposits. Contractor Rabindra Raut Kurmi has deposited Rs50,000 to Sah’s account.

Likewise, a total of Rs1 million 352,000 was deposited to Sah’s account from an account named Amit Sah. Moreover, more than Rs6.5 million in total has been deposited to Sah’s account from various other accounts.

Mayor accused of deploying middlemen

Mayor of Pokhariya municipality Praduman Prasad Chauhan has been accused of appointing large numbers of employees illicitly and making purchases of police costumes and other supplies without following any bidding process. Our investigation, however, didn’t reveal any suspicious transaction at Chauhan’s account in Agriculture Development bank. But municipality officials allege that Chauhan collects the money through the accounts of his brothers Umesh Prasad Chauhan, who is currently the chair of Pokhariya Municipal Development Committee, and Suraj Prasad, who serves as Praduman’s personal secretary.

Rahul Sah Teli of Basantapur in Pokhariya-3 has handed over Rs200,000 to Umesh Prasad Chauhan to get an appointment as office assistant. “I talked with him and he said he had given me a discount of Rs100,000,” Teli said. “I paid the amount and started working as office assistant.” He received the appointment on 28 Bhadra.

Baliram Sah, a trusted lieutenant of Mayor Chauhan and Srivastav and the proprietor of Basanta Art, has been accused of collecting money for appointments from at least 20 people.

According to the appointees, the amount has reached the mayor through his brother Umesh. The amount has also reached the administrative officer.

Sachin Patel of Pokhariya-3 said he handed over Rs30,000 to Baliram and deposited Rs129,000 to the account of Basanta Art. Patel was then appointed as municipal police constable. “I received the appointment two days after I paid the amount,” Patel said.

Likewise, Baliram has collected Rs120,000 from Bittu Sah Teli of Basantapur to have him appointed as office assistant. “At first, they had demanded Rs200,000,” Teli said. “But since I didn’t have that much money, they agreed on Rs120,000.”

Santosh Yadav of the same place also handed over Rs100,000 to Baliram and got appointed as office assistant. Raju Mahato Kewat of Pokhariya-3 Basantapur said he paid Rs130,000 to Baliram Sah and was appointed as computer operator.

Likewise, Srinivas Sah Teli of Maniarwa handed over Rs190,000 to Baliram to get appointed as office assistant, according to Teli’s aunt Parvati Devi. “He first demanded Rs200,000 but we paid only Rs150,000,” Parvati Devi said. “But he declined and we paid Rs40,000 more.” Srinivas said he handed over the amount to Seshnath Sah Teli as per Baliram’s instruction.

Mayor Praduman has appointed his cousin Suraj Prasad as his personal secretary. And Suraj’s bank account also reflects suspicious transactions.

Raj Kumar Ram, in-charge of municipal police, has deposited Rs190,000 into Suraj’s bank account at various dates. Likewise, Sandip Sah of the supplies, administration and fuel distribution department has deposited a total of Rs78,000 into Suraj’s account.

Baijanath Mahato Tharu of the municipality’s planning department has deposited Rs25,000 into Chauhan’s account and supervisor Sujit Giri Rs20,000. Giri had deposited the amount just before his tenure extension. Shiva Kumar Patel, an officer at the health department, former medical superintendent of Pokhariya Hospital Sanju Prasad Das and another former medical superintendent Lakshmi Chauhan have also deposited various amounts to Suraj’s account.

But it’s not just officials; local leader and construction entrepreneur Santosh Giri, another construction entrepreneur Rabindra Raut Kurmi, contractor Laldev Raut, training operator Om Sah Kanu, and training provider organization called Community Development have also deposited amounts to Suraj’s account.

Moreover, various individuals and organizations whose identity is not known have deposited over Rs2.6 million into Chauhan’s account.

Patel’s account has transaction of over Rs10 million

The account of Shiva Kumar Patel, officer at the municipality’s health department, at Agriculture Development Bank has witnessed transactions worth over Rs14.4 million. He had deposited over Rs2.32 million at various dates to the account of Bhikham Sah, an office assistant. This transaction also looks suspicious.

Bhikham Sah in turn has deposited only Rs22,300 to Patel’s account between Asoj and Kartik of 2079BS.

Officer Patel has deposited money to the account of Raju Kumar Patel, a personal driver (of Creta motor) for the municipality’s account head Mandip Kumar Mahato. Likewise, Patel has deposited Rs100,000 to Srivastav’s account in Poush 2080. After the deposit, Patel’s brother and brother-in-law got an appointment to the municipality office.

Shiva Patel, an officer at the health department, has deposited Rs525,000 to the account of Kaushlendra Mishra, chief of the same department. Likewise, account head Mandip Kumar’s chauffeur Raju Kumar Patel has deposited Rs2,66,200 to Patel’s account.

Meanwhile, Patel has deposited various amounts to the accounts of Narendra Shahi, an official at the social department branch of the municipality, office assistant Jirjodhan Mahara, municipal police constable Dharmendra Patel and Ranju Mishra, another official at the health department.

Likewise, various anonymous individuals and organizations have deposited over Rs7.3 million to Patel’s account at various dates.

Anti-graft body’s action

The irregularities at Pokhariya Municipality can also be proven by the action taken by the Commission for Investigation of Abuse of Authority.

On 2082 Asar 6, the commission had arrested Srivastav and Sandip Sah on corruption charges for illegally appointing personnels. Both were later released on bail, while the commission says further investigation is underway.

Meanwhile, Pokhariya Municipality has sacked everyone appointed during the period. And those removed from their duties have been protesting, asking for their money back. They hadn’t even received their salaries.

“I have worked sincerely,” says Bittu Sah, sacked from the position of office assistant. “I should get my salary.”

Mayor Praduman says that while he had asked to appoint a total of 135 people, there were 277 appointments. “We have been unable to provide salary to all,” he said.

He further said that the officials were appointed for three months with their contracts promised to be extended later. “They were still working even though their tenures had not been extended but we removed them after the commission’s action,” Mayor Chauhan said.

The mayor further said that his office is currently conducting an organization and management (O and M) survey to reappoint those who were sacked. “We will issue vacancy notices and those with prior experience will be prioritized,” he said. “We will also settle the issue with previous salaries.”

Meanwhile, the data cited by Mayor Chauhan isn’t entirely accurate either. While he said there were 277 appointments, the actual number is 386, our investigation revealed. But officials at the municipality say that the number of appointees is even higher than that.