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Study committee concludes embezzlement of more than Rs 20.5 crore in purchase of satellite bandwidth of Nepal Television

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Kathmandu. The study committee formed to investigate the purchase of satellite bandwidth of Nepal Television (now Public Service Broadcasting Corporation) has submitted its report to the government.

The committee submitted its report to Minister for Information and Communications Dr Bikram Timilsina on Friday concluded that the purchase of satellite bandwidth at different times had found serious irregularities such as illegal actions, procedural weaknesses, violation of financial discipline and causing financial loss to the organization. The Ministry of Communications had formed a study committee on June 5, 2

083 on the basis of complaints received by various bodies regarding the purchase of satellite bandwidth, reports of the Office of the Auditor General and issues of public concern. The committee, in its report submitted to the Ministry on Friday, states that the procurement process held in different periods of time violated the provisions of the Public Procurement Act-2063 BS and Public Procurement Rules-2064 and caused financial loss to the NTV. As a result, the loss was estimated to be around Rs 20,61,73,469, according to the report. 

According to the report, the agreement period was extended at the old rate without following a competitive process while purchasing the satellite bandwidth fare, the rent was paid before the service started, the bill of higher amount was paid even after the service started, and more bandwidth was purchased by inflating the cost estimate.

The committee has submitted a report along with a serious analysis of the selection of technically unsuccessful bidders for the procurement of services in 2012. Similarly, the report points out that an agreement has been made with the same service provider to purchase an additional 10 MHz bandwidth when the design life of the satellite is over. 

The study committee has stated that such activities have caused financial loss to Nepal Television in different periods.

Similarly, the report states that the tax and other revenue liabilities that should have been deposited in the revenue account of the Government of Nepal in the payment process of satellite bandwidth have not been fully complied with. The committee concluded that this has also shown serious weaknesses in financial discipline and revenue management.

The study committee has found that the members of the top management and the office-bearers of the Board of Directors involved in the original agreement from the original agreement of 2012 to the subsequent supplementary agreement have taken decisions against the interest of the organization. In the report, they have directly or indirectly taken decisions to harm Nepal Television, saying that necessary action should be forwarded. According to the report, all channels of Nepal Television were stopped broadcasting for about 30 minutes on June 6, 2022 due to negligence in the decision of the Board of Directors. 

Similarly, the report has pointed out that the officials appointed to the Board of Directors from outside the Nepal Television were not provided factual information by the top management within the organization and the technical employees of the Ministry and Nepal Television did not fulfill their responsibilities as per their expertise.

The study committee has concluded that the carelessness and unnatural decision taken in the course of preparing the cost estimate has caused a serious financial burden on the organization. 

Since 2002, Nepal Television has been signing lease agreements with foreign satellite bandwidth service providers to broadcast its channels through satellite.

During this period, questions were raised on the decision of adding channels, upgrading from Standard Definition (SD) to High Definition (HD), making complementary agreements, and purchasing equipment. Concluding that procurement without competition, procedural irregularities, unnecessary financial burden, violation of fiscal discipline and conflict of interest were found in the report, the report has recommended the government to take necessary action as per the law.

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