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Auditor General Warns of Weak Financial Discipline in Madhes Province

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The Office of the Auditor General (OAG) has issued a warning regarding deteriorating financial discipline and increasing audit irregularities in Madhes Province, according to its eighth annual report. Deputy Auditor General Tara Prasad Pandey submitted the report to Madhes Province Chief Surendra Prasad Labh Karn, highlighting that arrears are rising due to weak financial management in government spending.

  • The OAG report indicates that Madhes Province recorded higher audit irregularities compared to other provinces.
  • Key factors contributing to poor financial discipline include inadequate laws, frequent budget transfers, rushed year-end spending, and continued hiring of contract staff.
  • Province Chief Karn stated the provincial government would take the report seriously to reduce arrears and improve public spending.
  • Audits could only be completed for 119 out of 136 local levels, three ministries, two agencies, and four offices due to destroyed records during a recent movement.

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