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Almost all local governments across Nepal operate without designated law officers, leading to frequent contradictions or violations of federal and provincial laws, undermining good governance. The absence of legal experts in local governments is a significant obstacle to advancing federalism.

Good governance in local bodies and the broader public sector involves delivering priorities, achieving objectives, behaving with integrity, and acting in the public interest while adhering to legal, regulatory, and government policy obligations.

Nepal has 753 local bodies, including six metropolitan cities, 11 sub-metropolitan cities, 276 municipalities, and 460 rural municipalities across 77 districts. Only a few, such as Kathmandu and Pokhara, have appointed law officers to ensure compliance with laws and regulations.

Although federal law does not mandate the appointment of law officers in local governments, the Local Government Operation Act 2074 BS (2017) provides a legal framework for local legislative, executive, and quasi-judicial practices. This act is based on Article 296 (1) of the Nepal Constitution of 2015, which aims to enhance local leadership and governance.

Despite this framework, most local governments, except for some metropolitan and sub-metropolitan cities, have not appointed law officers, according to the Ministry of Federal Affairs and General Administration (MoFAGA). Some local bodies have legal advisors, but they are not officially recognized as law officers.

In the absence of legal experts, local bodies have violated the constitution and central laws. “We are not obliged to obey the constitution or federal laws as we are empowered to make laws ourselves,” says Raman Bahadur Thapa, mayor of Rampur Municipality in Lumbini Province.

Local governments have the right to formulate supplementary laws, provided they do not contradict federal or provincial laws, according to high-ranking officials at MoFAGA. However, implementing national laws at the local level is problematic, resulting in the arbitrary increase of taxes and charges, contrary to the constitution and existing laws, depriving citizens of good governance and social justice.

Nepal faces significant challenges in delivering efficient services, maintaining law and order, and ensuring rights enshrined in the nation’s laws. These challenges include illiteracy and weak civil society, deeply rooted corruption, weak law enforcement, impunity, procedural administration, lack of public awareness, unstable government and policies, traditional mindsets, low accountability, and non-inclusive governance.

Advocate Ananta Raj Luitel says that local bodies have not adequately followed federal and provincial laws. “There is conflict between local and federal governments in exercising devolved power in the federal context. Local bodies are powerful with devolution but must still abide by national laws.”

Luitel suggests that appointing law officers in local authorities would minimize illegal activities and legal conflicts. 

The federal ministry overseeing local governments is concerned about local government operations. “They are autonomous and don’t consult us on major issues,” says Suman Dahal, joint-secretary at MoFAGA.

Local bodies can create quotas to appoint law officers, but many avoid doing so to circumvent legal conflicts. 

According to Dahal, some local bodies exceed their capacities and rights when addressing local issues. such as appointing staff beyond financial capacity and making decisions contrary to laws and the constitution.  “There are problems of some local bodies appointing local staff against their financial capacity, making decisions against law and constitution and not using their own rights enshrined in the constitution,” he says.

Key issues within local governments include bullying by political parties and elected representatives' lack of legal literacy. Elected officials often believe they can act without constraint.

Local governments have been found developing parallel laws that contradict central laws. For instance, Rampur Municipality in Palpa developed local road standards that conflicted with regional, provincial, and central road rules, imposing a local road standard of 14 meters width in roads that are meant to be 30 and 50 meters wide.

“It is a reckless and illegal practice,” says advocate Bal Bhadra Khanal. “They should be punished for such activities. Where laws are not followed, corruption and crime are likely to rise.”

According to the Commission for the Investigation of Abuse of Authority (CIAA), corruption complaints related to MoFAGA and local governments make up 33 percent of total complaints registered at the commission, with 22,868 complaints registered in the current fiscal year (2023/24).

Impunity and corruption are also prevalent in federal and provincial governments, contributing to widespread bad governance. “

If the federal government functions properly, lower governments will be obliged to maintain good governance,” says advocate Luitel.

The Supreme Court denied an interim order on a writ petition filed against Deputy Prime Minister and Home Minister Rabi Lamichhane.

A single bench of Justice Til Prasad Shrestha issued the order for discussion with disputants on June 10, which would determine whether to issue the interim order.

Shrestha also demanded submissions of the charge sheets filed at different courts against Lamichhane.

In the order, Justice Shrestha warranted prior rights for hearing the case, as its nature suggested.

The case is related to the misappropriation of cooperatives' funds.

The Office of the Attorney General has also been asked to furnish a written response whether an order is needed in the case.

Advocate Anupam Bhattarai had filed a writ petition at Supreme Court, accusing Home Minister Lamichhane of involvement in the misappropriation of cooperatives' funds. He also demanded relieving Lamichhane from the post.

Earlier, justice Tek Prasad Dhungana had ordered for the registration of a writ petition against Home Minister Lamichhane on May 22.

The policies and programs of the Koshi Province government for the new fiscal year 2024/25 will be presented on Monday.

Minister of Internal Affairs and Law and Government Spokesperson Leela Ballabh Adhikari shared that the Province Cabinet meeting held today approved the annual policies and programs and decided to request the Province chief Parshuram Khapung to read out the annual policies and programs at 4 pm on Monday.

Likewise, the meeting approved the sixth annual report of the Auditor General-2081 to be submitted to the Provincial Assembly.

Finance Minister Barsha Man Pun has said the budget for the fiscal year 2081/82 BS (2024/25) remains objective though significant pressure has been realized in the management of resources.

Proposing to the House of Representatives (HoR) today to initiate general deliberations on the estimations of the government's income and expenditures for the current fiscal year, the finance minister said the budget is capable of alleviating civic frustrations and counteracting economic slowdown.

"In the course of the budget formulation, the shrinking of resources was realized by all. There were many expectations in the budget. Concerns were whether it would prioritize the need to enable an atmosphere for encouraging youths to seek career opportunities within the country and motivate the private sector. But now reactions are that the budget is objective amidst the shrunken resources. The private sector also dubbed it a balanced one," he said.

The minister said that the budget is based on the principles and priorities presented by outgoing Finance Minister Dr Prakash Sharan Mahat.

Similarly, changes in tax rates were made on a need basis with in-depth analysis of their relevance. Tax rates were revised at the lowest level and those changes were based on the need basis, he clarified.

According to him, the government did not want to jeopardize political stability by changing tax rates significantly. 

The Minister apprised the House that the nation's economy has gradually improved.  Amidst the shrinking of the national economy, the Central Statistics Office has estimated a 3.9 per cent economic growth rate this year.

Last year, Nepal's economic growth rate was 1.9 per cent. The scenario suggests that the economy is recovering, but a full recovery is awaited, according to him.