Research On Accountability, Ngos And Criminal Justice In Nepal
Legal Context
NGOs in Nepal operate under the Social Welfare Act and oversight by the Social Welfare Council (SWC).
Criminal liability arises when NGOs or their personnel misuse funds, engage in fraud, violate labor laws, or commit corruption.
Criminal justice institutions such as the Commission for Investigation of Abuse of Authority (CIAA) and courts can investigate, prosecute, and punish violations.
Case 1: Misuse of Foreign Grant Funds by a Media NGO
Facts:
A media-focused NGO received grants from international donors for promoting freedom of expression and peace journalism. Investigations revealed that funds were allegedly diverted to unrelated projects and personal expenses.
Legal Action / Decision:
CIAA initiated a probe against NGO executives under financial misuse and fraud provisions.
NGO personnel were questioned; accounts were audited.
Several executives were charged with criminal breach of trust and ordered to return misused funds.
Significance:
Demonstrates that NGOs with foreign funding are under criminal scrutiny if accountability fails.
Reinforces that criminal justice intervenes to prevent fund mismanagement.
Case 2: Labor Violations in a Health NGO
Facts:
An NGO operating rural health clinics employed local staff without proper contracts, delayed salaries, and forced overtime. Staff lodged complaints citing labor law violations.
Legal Action / Decision:
The labor office investigated the NGO under the Labor Act of Nepal.
Criminal charges for exploitation, negligence, and violation of labor rights were brought against NGO management.
Court ordered compensation to employees and fines to executives.
Significance:
Highlights that NGOs are not immune from labor laws.
Criminal liability arises when human rights of employees are violated.
Case 3: Environmental NGO Falsifying Reports
Facts:
An NGO working on environmental protection submitted fabricated progress reports to donors to claim funds for unexecuted projects.
Legal Action / Decision:
Upon audit, the NGO was found guilty of financial fraud and misrepresentation.
Executives faced prosecution under criminal statutes related to fraud and forgery.
Donors froze funding and demanded restitution.
Significance:
Emphasizes accountability in reporting and transparency.
Shows that criminal justice acts when deception and mismanagement occur.
Case 4: Child Rights NGO and Misappropriation
Facts:
A child protection NGO used funds for unrelated personal expenditures, despite pledging to build shelters and provide education programs. Local activists filed complaints.
Legal Action / Decision:
Police and CIAA investigated the NGO for misappropriation and criminal breach of trust.
Court ordered full restitution of misused funds and temporarily suspended the NGO’s registration.
NGO executives were fined and barred from managing non-profits for five years.
Significance:
Reinforces that NGOs handling vulnerable populations must be strictly accountable.
Demonstrates criminal liability tied to mismanagement of charitable funds.
Case 5: NGO Involved in Cooperative Fund Misuse
Facts:
A development NGO partnered with a cooperative society but diverted cooperative members’ savings for NGO projects without authorization.
Legal Action / Decision:
Police filed criminal charges against NGO executives for embezzlement and fraud.
Court proceedings emphasized fiduciary responsibility of NGOs in handling third-party funds.
Executives were convicted, fined, and required to return misappropriated funds.
Significance:
Illustrates that NGOs’ accountability extends to third-party funds.
Shows criminal justice intervention protects contributors and beneficiaries.
Case 6: NGO Non-compliance in Disaster Relief Funds
Facts:
After a major flood, an international NGO received relief funds but failed to distribute them properly to victims, diverting them for administrative expenses. Affected communities filed complaints.
Legal Action / Decision:
Government investigation confirmed misuse of relief funds.
NGO staff faced prosecution for fraud, breach of trust, and obstruction of justice.
Victims were compensated using recovered funds.
Significance:
Highlights that NGOs engaged in emergency aid have heightened accountability.
Criminal liability protects citizens from exploitation in disaster scenarios.
Key Insights Across Cases
NGOs are subject to criminal law if they misuse funds, violate labor laws, or commit fraud.
Criminal justice institutions like the CIAA and courts actively intervene to protect public trust and donor funds.
Accountability mechanisms are crucial: audits, reporting, and internal governance reduce risk of criminal liability.
Mismanagement or deception in NGOs not only harms beneficiaries but also triggers legal and criminal repercussions.
These cases show a balance between civil society autonomy and legal oversight, ensuring NGOs operate transparently and ethically.
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