Kathmandu: Industrialists and business leaders have expressed serious concern after the Commission for the Investigation of Abuse of Authority proposed expanding its investigative scope to include the private sector. The proposal is part of the Commission’s second national strategic plan against corruption, which aims to bring activities in cooperatives, public and private companies, and other private organizations under its legal purview.

Business Community Pushback
Nepal Chamber of Commerce President Kamlesh Agrawal strongly opposed the move, stating that CIAA’s involvement in the private sector is unacceptable under any circumstances. He argued that the proposal comes at a time when the private sector is already struggling to recover from the economic impact of the COVID-19 pandemic.

Agrawal emphasized that several regulatory bodies—including the Inland Revenue Department, Nepal Rastra Bank, the Insurance Authority, and the Office of the Registrar of Companies—are already responsible for oversight. According to him, introducing CIAA into this space would be redundant and harmful to investment confidence.

Concerns Over Investment Climate
Agrawal maintained that the CIAA’s mandate should remain limited to investigating misuse of authority by public officials. He warned that expanding its jurisdiction could discourage investment and even lead to capital flight.

“If such a system is enforced, there is a high risk that industries will shut down and private capital will leave the country,” he cautioned, adding that excessive government interference could undermine economic growth and prosperity.

Call for Careful Review
Similarly, Nepal National Entrepreneurs' Federation President Manoj Babu Shrestha criticized the proposal, calling it inappropriate to monitor private sector transactions. He urged the government to conduct thorough study and analysis before making any decision on such a sensitive issue.

Shrestha also raised concerns about potential harassment of businesses through retrospective scrutiny of audit reports and VAT filings, urging authorities to avoid such practices.

Focus on Structural Reforms Instead
He stressed that the government’s priority should be to resolve existing issues in customs administration and improve transparency at border points. According to him, increasing surveillance without fixing systemic problems would send a negative signal to the market and further demoralize entrepreneurs.

Strong Opposition from Private Sector
Overall, the private sector has strongly opposed the CIAA’s proposed expansion, arguing that it could damage the investment climate and hinder economic recovery. Business leaders have called for a more balanced approach that supports growth while ensuring accountability.