Audit Reveals Accounting Discrepancies in Citizens Investment Trust’s Insurance Records
Kathmandu — Serious irregularities have surfaced in the management of life insurance premiums by the Citizens Investment Trust (CIT), raising concerns about financial transparency and accountability within the public investment system.
An internal communication received by the Fund from Rastriya Jeevan Beema Company Limited, dated Poush 12, 2080 (December 28, 2023), reveals a significant mismatch in the insurance data. According to the company, a total of 337,963 individuals had been insured under the Trust’s life insurance scheme, with a premium collection amounting to Rs 3.30 billion.
However, the financial records maintained by the CIT report insurance coverage for only 333,292 individuals and premium payments worth Rs 3.22 billion sent to Rastriya Jeevan Beema Company. This shows a gap of 4,671 insured persons and an unexplained discrepancy in funds.
Moreover, during the fiscal year, the insurance fund reportedly collected Rs 3.94 billion from contributors, mostly civil servants. Yet, only Rs 3.22 billion was transferred to Rastriya Jeevan Beema Company. The remaining amount appears to have neither been deposited in the designated insurance account nor disbursed to the insurer on time.
The situation worsened during the data migration process from the trust’s old accounting software to the new system. In the process, the insurance data of thousands of contributors was inaccurately transferred. A financial audit revealed that the final balances of more than 91,000 participants showed a collective negative balance of Rs 382.79 million.
The findings raise serious questions about internal controls, data management, and fiduciary responsibility within the CIT.