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Figure 35. Extent that corruption hinders business growth of enterprises in Manufacturing Sector
from Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth
6.2.2 Corruption
A greater majority of the manufacturing enterprises in the two provinces perceived corruption to be a serious to moderate problem. Key issues were the kickbacks and facilitation payments when getting permits and other business requirements.
Figure 35. Extent that corruption hinders business growth of enterprises in Manufacturing Sector
In 2020, Nepal ranked 117 out of 180 countries on Transparency International’s Corruption Perceptions Index, with a score of 33 placing it in the “more corrupt” category. The Prevention of Corruption Act is the country’s key anti-corruption law, criminalizing corruption, bribery, money laundering, abuse of office, and facilitation payments (GAN Integrity 2020).
Some of the challenges in eliminating corruption are: (Shrestha 2019)
● Poor implementation and enforcement of rules and regulations ● Weak institutional capacity of oversight institutions ● Increasing impunity due to negligible departmental and legal actions against those guilty of corruption and several corruption cases remaining uncovered or punished ● Increased bribery in the form of “facilitation payments” in the distribution of permits and approvals, public procurement, contract awards, and when registering a business.
