Kathmandu. In the fiscal year 2081/82, the government could not recover billions of rupees from contractors who had cancelled contracts. According to the report of the Auditor General, the three ministries have not been able to recover more than Rs 5.79 billion even after the termination of the contract.

A total of 118 contracts under the Ministry of Energy, Water Resources and Irrigation, Ministry of Water Supply and Ministry of Water Supply and Ministry of Physical Infrastructure and Transport were cancelled in the current fiscal year due to delay in construction work.

Clause 59 of the Public Procurement Act, 2063 BS states that the contractor has to recover the additional cost required to complete the remaining work while terminating the contract.

According to the same provision, it was decided to recover Rs 5.79 billion for the remaining works of 39 contracts. However, the amount has not been recovered so far.

According to the report of the Comptroller and Auditor General, in the case of 62 contracts, the required cost to complete the remaining works has not been determined.  Similarly, performance guarantee worth Rs 54.16 million in 17 contracts has not been confiscated.

The Comptroller and Auditor General has described this situation as the result of weakness in public procurement management, lack of monitoring and delay in implementation of legal provisions.