The government has released a draft bill that seeks to prevent public officials from using their official positions to serve personal interests in financial or contractual matters. The Office of the Prime Minister and Council of Ministers made public the draft of the Bill on Management of Conflict of Interest on Sunday for feedback.

The proposed legislation prohibits public officials from participating in any significant transactions involving their affiliated public institutions if those transactions intersect with their private interests. Such transactions include the purchase, sale, lease, or contracting of goods and services. Any contract made in violation of this provision would be automatically annulled, and if the public institution incurs losses due to the breach, the responsible official would face legal consequences.

The bill defines a "conflict of interest" as any situation where the duties or responsibilities of a public official are at odds with their personal, financial, or professional interests.

To manage such conflicts, the draft proposes that public officials must disclose any potential personal interests in writing to their institution prior to assuming office. Once a conflict is declared, the official would be barred from providing opinions, making recommendations, or participating in any decision-making process related to the matter. Any decision made with the involvement of an official with a known conflict of interest would also be rendered invalid, and intentional violations would result in departmental action.

Furthermore, public officials would be prohibited from representing any government or non-government program, project, seminar, or event where a personal interest exists, unless specifically authorized by the government or a legally designated authority. They would also be barred from accepting any form of gifts while in office. Any gift received must be deposited as per existing laws of the respective institution; failure to do so would result in confiscation and an equivalent fine.

The bill also prohibits public officials from participating in public procurement or auctions if it creates a conflict of interest. If a conflict arises during such processes, the official must withdraw from participation immediately.

In another key provision, the bill bars public officials from setting or approving their own salaries, allowances, or benefits.

Mandatory Asset Disclosure within 30 Days of Appointment

The draft bill also proposes strict transparency measures. All public officials — from the president and prime minister to local-level representatives like rural municipality chairs — as well as government employees would be required to publicly disclose their assets within 30 days of appointment, nomination, or election.

Currently, officials are only required to submit asset details to a designated body, but the bill proposes that such declarations be made public. They must also update and submit their asset details annually within 60 days after the end of each fiscal year.

The proposed disclosures would include movable and immovable assets, liabilities, family-owned property, professional or business interests, shareholdings, debentures, or involvement in firms or companies, vehicle ownership with source and date of acquisition, affiliations with charitable organizations and dates of involvement, donations exceeding Rs 100,000 and criminal penalties, if any.

Despite existing legal requirements, some high-ranking officials — including Prime Minister KP Sharma Oli — have not made their property details public, highlighting the need for stricter enforcement and transparency mechanisms.