CIAA investigating on CANN’s bonus distribution proposal

March 15, 2017-Kathmandu

Commission for the Investigation of Abuse of Authority (CIAA) has started an investigation operation to inspect the bonus distribution decision of Civil Aviation Authority.

According to a source, CIAA has ceased four bundles of documents from Culture, Tourism and Civil Aviation Ministry, CAAN and related office on Monday.

The Investigation Authority has also directed an inspection team to investigate the issue, added the source. CIAA had started the string operation soon after getting the informed about the signature on the papers of bonus distribution made by Ex-Culture, Tourism and Civil Aviation Minister Jiwan Shahi.

Jiwan Shahi had been serving the minister responsibility for last six months and had resigned from the responsibility last week. The file for the bonus distributions had also been forwarded to the Finance Ministry for its approval.

Ex- minister Shahi had signed the document directing to distribute fifty-three crores twenty-seven lakhs and fifteen thousand to moreover seven hundred staffs of Civil Aviation Authority.

A committee led by Ex-minister had made the decision of bonus distribution on December last year. The committee had even corresponded with various ministries via letter before coming up with the decision. Minister Shahi had signed the paper for bonus distribution just before resigning the responsibility of the minister along with the spent time duration of three months from the date of letter correspondence on the matter with the ministries.

Secretary of civil aviation ministry along with all the authority persons had agreed on the bonus distribution agreement made by the committee.

CAAN analyzing the organization’s profit earning from fiscal 2062/63 had decided to distribute the bonus salary to its seven hundred staffs.

The Civil Aviation Authority had even decided to distribute the bonus in two sections. 70 % of the bonus income was planned to be deposited in staffs provident fund account and the remaining 30% was to be distributed by cash.

 CAAN had planned to distribute two lakhs and fifty thousand cash to each staff as the first installment and the remaining part of the bonus amount would have been issued after their retirement.

But Birendra Shrestha spoke person of the flag carrier claims that none of the documents have been requested by CIAA.  He also added that the Civil Aviation ministry has already forwarded the proposal file of bonus distribution to the Finance Ministry. Shrestha had reported that at present, profit amount of only two fiscal years will be distributed to around seven hundred staffs.

According to the information, CAAN has two sources of income, 80% of which is earned from flight operation and non-flight operational activities earn them remaining 20% part of the income.

We are distributing the bonus from the profit made by CAAN and the law of country has no restriction on bonus distribution, reported Shrestha.

But the law states that the respective company needs to distribute the bonus amount of a fiscal year by the time duration of next eight months from the time of income statement issuance and additional duration of extra three months extension period can be requested at the labor ministry. The business law also has made a provision for distributing bonus of two successive fiscal years at a time, added Shrestha.