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Madhesh Province introduces new procedure to address financial irregularities

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JANAKPURDHAM: The Madhesh provincial government has implemented the ‘Madhesh Province Irregularity Clearance Procedure, 2026’ to ensure financial discipline and governance.

Approved by the cabinet under the Administrative Procedure Act, 2018, the new regulation applies to all provincial ministries, commissions, secretariats, and public entities.

The procedure categorizes irregularities into three types: those requiring recovery, those requiring regularization, and pending advances.

It establishes a clear mechanism for monitoring and reducing irregularities by classifying offices into four categories-A, B, C, and D-based on their annual performance.

To encourage compliance, the government will provide cash awards of up to Rs 25,000 and certificates to the best-performing offices and staff who clear irregularities in a timely manner.

Madhesh Province Finance Minister Yubaraj Bhattarai stated that the procedure will be a significant milestone in the campaign to make the province free of financial irregularities. He has directed all officials involved in financial transactions to fulfill their responsibilities within the stipulated timeframe as per the new guidelines.

The policy introduces strict measures for long-standing issues, including those that remain unresolved for five years. Such cases will be treated as government dues, allowing the Provincial Comptroller Office to freeze bank accounts, seize assets, and initiate legal action.

Furthermore, failure to clear advances within the deadline will result in an annual interest charge of 10 percent. Offices are now mandatorily required to approve and implement an irregularity clearance action plan by August 31 of each fiscal year.