Rastriya Beema Company Faces Questions Over Audit Irregularities

Kathmandu – The government-owned Rastriya Beema Company has come under scrutiny for submitting audit reports that do not meet the required standards set by the Insurance Authority. The company has reportedly failed to include the mandatory long-form audit report in its financial statements for the fiscal year 2078/79.

The long-form audit report, a critical document for ensuring financial transparency, typically includes the auditor’s declaration of independence, auditing standards followed, the composition of the audit team, and the audit schedule. However, Rastriya Beema’s submission only includes a statement from an independent auditor indicating an inability to provide an opinion, raising concerns over compliance.

The Insurance Authority has written to Rastriya Beema Company, seeking clarification for the incomplete submission. This follows previous audits revealing financial irregularities amounting to Rs. 720 million between fiscal years 2073 and 2075.

Despite the critical role of audits in maintaining transparency, Rastriya Beema Company has been accused of failing to adhere to directives from the Insurance Authority. Allegations of using influence within the Ministry of Finance to push for approvals have also emerged.

The Ministry of Finance, which had directed the company to complete its audit within four months, has been criticized for its lack of oversight. The unresolved irregularities have left the approval of Rastriya Beema’s financial statements in doubt, with regulatory and auditing standards hanging in the balance.