Compliance and Ethics

To maintain and promote transparency and accountability and to prevent corruption across the nation, government institutions of Nepal adheres to national legislation and international best practices to maintain a high level of ethical standards and accountability to develop mutual trust among the stakeholders at large in Nepal. Following institutions and mechanism have been established in Nepal to maintain transparency and accountability and to prevent corruption: 

  • Commission for Investigation of Abuse of Authority (CIAA) as an apex constitutional body with its tentacles in the country to curb corruption.

  •  National Vigilance Centre (NVC) and

  • Hello Sarkar mechanism under the Office of Prime Minister and Council of Ministers (OPMCM) are the other designated agencies of GoN to promote good governance and control corruption.

Nepal also adheres to international standards related to anti-corruption measures. In 2011, the government ratified the United Nations Convention against Corruption (UNCAC), and the government adopted the second National Anti-Corruption Strategy in 2012 to address the UNCAC obligations.

Underpinning AEPC commitment towards maintaining a high level of fiduciary standards and prevention of corruption, AEPC has an independent Compliance Unit from the decision of the Board dated 04/01/2016 (20/09/2072 BS) to serve the oversight function to ensure the adequacy of internal controls at the institutional level.

 

The oversight of the Unit is done by Compliance and Ethics Sub-Committee with a total of five members headed by one Board member to oversee the internal control, ethics and internal audit of AEPC. Other members of the sub-committee are Joint-Secretary from Legal Department and Under-Secretary Finance Section from the Ministry, Independent Legal Expert and Independent Finance Expert.   The unit is an independent unit from AEPC division/section/unit and the AEPC management.

The Compliance Unit reports directly to the Board through the Compliance and Ethics Sub-Committee. The Financial Discipline and Good Governance Regulation 2018 and Financial Mismanagement and Corruption Prevention Resource Book 2018 which are critical guiding documents in the area of internal control, fiduciary risk management, fraud reporting and investigation have been approved and implemented at AEPC and procedures at AEPC in stacked up against these guiding documents while conducting reviews and assessments. Since, it’s establishment the compliance unit and the compliance and ethics sub-committee have been actively engaged in conducting annual/trimester compliance reviews along with multitude of various other assessment and audits and aims at achieving and maintaining a robust internal control at AEPC.

All of AEPC policies, procedures, and guidelines are governed by the government systems. The relevant laws and regulations include the following: 

 

Title Published On Attachment
Second Compliance Report 2018/2019 2019-11-14  
Summary of Compliance Review 2017-18 2019-11-13  
Conclusions on the review of the 1st Compliance and Ethics Sub-Committee Compliance Report 2019-11-13  
Second Trimester Compliance Report 2018/19 2019-04-03  
First Trimester Compliance Report 2018/19 2018-12-03  
Annual Work-Plan of the Compliance Unit 2018-08-21  
Financial Mismanagement and Corruption Prevention Resource Book 2018-08-15  
Annual Compliance Report 2017/18 2018-07-31  
Financial Discipline and Good Governance Regulation, 2075 2018-06-19  
Terms of Reference of the compliance and ethics sub-committee 2009-10-20  
Right to Information Regulation 2009 (2065 BS) 2009-07-20  
Asset (Money) Laundering Act 2008 (2064) 2008-01-28  
Financial Procedure Rules 2007(2064 BS) 2007-11-17
Public Procurement Rules 20074 2007-08-20  
Right to Information Act 2007 (2064 BS) 2007-07-21