NGO Law Monitor: Nepal

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Last updated 12 September 2013

Update: The Ministry of Foreign Affairs is holding consultations with other government agencies about setting up a new mechanism to further regulate and monitor foreign funding to international NGOs (INGOs). Deputy Prime Minister and Minister for Foreign Affairs, Narayan Kaji Shrestha, said "We are of the view that those INGOs receiving funds directly by bypassing the government must be checked. How can they operate without informing the government and without the approval of the government?" There are concerns that any new initiative will resemble the restrictive regulations that the royal regime attempted to impose seven years ago.

Introduction

Civil society has gained strength in Nepal in the past twenty years. The number of civil society organizations (CSOs) is rapidly increasing with the emergence of a more favorable environment following the dawn of multi-party democracy in 1990. However, the broad concept of civil society is not yet well understood by most Nepalese.

Nepal's commitment to human rights is reflected in an interim constitution and other policy documents that repeatedly affirm the intention to provide Nepalese people an open and free environment to enjoy their rights, including the freedoms of assembly, association, information and expression. At the same time, however, CSOs often criticize the existing legal framework for carrying forward the controlling legacy from the previous regime.

The Nepali legal framework follows common law tradition. Nepal used to be a unitary country, but following the people's movement that overthrew the monarchy in 2007, it has been declared a secular, inclusive and federal democratic system. While the basis for federalism has not yet been agreed upon, the issue will be addressed in the forthcoming Constitution. Consequently, all laws are subject to change in line with the new Constitution. However, the Constituent Assembly has missed several deadlines to draft the new Constitution, including one on May 27, 2012, because of the inability of political parties in Nepal to reach consensus on the number, boundaries and names of the country’s states, with the Madhesi Front supporting the idea of federating the states on the principle of a singular ethnicity and the Nepali Congress supporting the idea of federating the states on the basis of multi-ethnicity and economic viability.

At a Glance

Organizational Forms	Association	Foreign CSOs
Registration Body	The Ministry of Home Affairs and its district offices, such as the District Administrative Office.	The Social Welfare Council, the Ministry of Finance, and the Ministry of Foreign Affairs.
Approximate Number	84,000 (unofficial estimate)	198 foreign CSOs are affiliated with the Social Welfare Council. There are a few who are directly aligned with other Ministries.
Barriers to Entry	(1) Mandatory registration. (2) Only citizens may form associations. (3) A minimum of 7 members required for registration. (4) Annual re-registration.	--
Barriers to Activities	(1) Mandatory re-registration on annual basis. (2) Mandatory audit requirements. (3) No limited list of objective grounds for dissolution. (4) Advance approval of project plan and budget if support is sought from other agencies.	Foreign CSOs must implement programs through local CSOs or government agencies by entering into project-specific agreements.
Barriers to Speech and/or Advocacy	No legal barriers The District Administrative Office, however, may impose temporary restrictions and seek advance information.	--
Barriers to International Contact	CSOs must receive prior governmental permission to accept international volunteers, materials and funding from outside the country.	--
Barriers to Resources	CSOs must receive prior governmental permission to receive foreign funding.	Foreign CSOs may not engage in fundraising from domestic sources.

Key Indicators

Population	26,620,809 Male: 12,927,431 Female: 13,693,378 (Preliminary report, 2011 Census)
Capital	Kathmandu
Type of Government	Federal Democratic Republic
Life Expectancy at Birth	Male: 63.6 years Female: 64.5 years
Literacy Rate	Male: 65.5% Female: 42.8% (2001 Census)
Religious Groups	Hindu: 80.6%; Buddhist: 10.7%; Muslim: 4.2%; Kirant: 3.6%; other: 0.9% (2001 Census)
Ethnic Groups	Chettri: 15.5%; Brahman-Hill: 12/5%; Magar: 7%; Tharu: 6.6%; Tamang: 5.5%; Newar: 5.4%; Muslim: 4.2%; Kami: 3.9%; Yadav: 3.9%; other 32.7%; unspecified: 2.8% (2001 Census)
GDP per capita	$562 (2009-2010 est.)

Source: CIA World Factbook and Nepal Central Bureau of Statistics (www.cbs.gov.np)

International Rankings

Ranking Body	Rank	Ranking Scale (best – worst possible)
UN Human Development Index	157 (2011)	1-184
World Bank Rule of Law Index	16.1 (2010)	100 – 0
World Bank Voice & Accountability Index	30.8 (2010)	100 – 0
Transparency International	154 (2011)	1 – 180
Freedom House: Freedom in the World	Status: Partly Free (2012) Political Rights Score: 4 Civil Liberties Score: 4	Free/Partly Free/Not Free 1 – 7 1 – 7
Foreign Policy: Failed States Index	Rank: 27 (2011) Human Rights: 8.5	177 – 1 0-10

Legal Snapshot

International and Regional Human Rights Agreements

Key International Agreements	Ratification*	Year
International Covenant on Civil and Political Rights (ICCPR)	Yes	1991
Optional Protocol to ICCPR (ICCPR-OP1)	Yes	1991
International Covenant on Economic, Social, and Cultural Rights (ICESCR)	Yes	1991
Optional Protocol to ICESCR (OP-ICESCR)	No	--
International Convention on the Elimination of All Forms of Racial Discrimination (ICERD)	Yes	1971
Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW)	Yes	1991
Optional Protocol to the Convention on the Elimination of Discrimination Against Women	Yes	2007
Convention on the Rights of the Child (CRC)	Yes	1990
International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families (ICRMW)	No	--
Convention on the Rights of Persons with Disabilities (CRPD)	Yes	2008
Regional Treaties
South Asian Association for Regional Cooperation Two regional treaties were signed in 2000 (?) in regard to protection and welfare of children and women	Yes	1985

* Category includes ratification, accession, or succession to the treaty

Constitutional Framework

The Interim Constitution of Nepal came into force on January 15, 2007. Relevant constitutional provisions include the following:

Articles 12, 13, 16, 24, 25, 26, 29 and 31, which relate to various individual freedoms, including civil rights (right to life, dignity, equality and freedom, etc.) and political rights (rights to association, expression and exchange of ideas, participation in the state system, etc.)
Articles 12, 15, 27 and 28, which outline economic rights (rights relating to opportunity for proper employment, freedom from hunger, right to select one's own occupation, etc.)
Articles 12, 13, 18, 19 and 30, which guarantee social rights (rights to education, health and safety, medical facilities, maternal and infant health care, safety and security of children, etc.)
Article 23, which guarantees cultural rights (right to participate in religious cultural and traditional practices without hurting the sentiment and dignity of others).

Part 3, Article 12 of the Interim Constitution of Nepal specifically guarantees a set of freedoms for an enabling environment for civil society, including:

Freedom of opinion and expression;
Freedom to assemble peacefully and without arms;
Freedom to form political parties;
Freedom to form unions and associations;
Freedom to move and reside in any part of Nepal; and
Freedom to practice any profession, carry on any occupation, industry, or trade.

Part 4 of the Interim Constitution obliges the State "[t]o implement international treaties and agreements effectively, to which the State is a party." Part 4, Section 34 outlines "Directive Principles of the State" as follows:

(1) It shall be the chief objective of the State to promote conditions of welfare on the basis of the principles of an open society, by establishing a just system in all aspects of national life, including social, economic, and political life, while at the same time protecting the lives, property, equality and liberty of the people.
(2) It shall be the objective of the State to maintain conditions suitable to the enjoyment of the benefits of democracy through maximum participation of the people in the governance of the country by means of self-governance tribal, linguistic, cultural or regional, and to promote the general welfare by making provisions for the protection and promotion of human rights, by maintaining tranquility and order in the society.

Part 4, Section 35 of the Interim Constitution under "State Policies" suggests the need to enact a legal framework that facilitates CSOs: "The State shall pursue a special policy to regulate the operation and management of public and non-governmental organizations established in the country."

The Interim Constitution envisages popular participation in governance and democratic exercise. Part 17, Section 139 of the Interim Constitution includes the "Provision for Local Self Governance," which states:

Arrangements shall be made to setup local self governance bodies to ensure the people's exercise of their sovereignty by creating a congenial atmosphere and thereby ensuring maximum people's participation in the country's governance, and also by providing services to the people at the local level and for the institutional development of democracy, based on the principle of decentralization and devolution of power.

The ongoing constitution making process in the Constitution Assembly since May 2008 is working to draft the constitution in line with the interim constitution, comprehensive peace accord signed in November 2006 and peoples aspirations reflected through inputs and suggestions directly collected by CA members in 2009/10. The thematic reports made public by the different 11 subject committees under the CA have also given enough and independent room for CSOs as a development actor in new Nepal.

National Laws and Regulations Affecting Sector

Relevant national-level laws and regulations affecting civil society include:

The National Directorate Act (1961) (Rastriya Nirdeshan Ain 2018) aims to ensure that professional organizations and groups use their strength for their development, as well as nation building, with pre-approval and consent from the government. CSOs registered under this Act include the Nepal Bar Association, Nepal Press Council, Teachers Union of Nepal, Nepal Federation of Journalist Associations and the NGO Federation of Nepal. Unless formed by the government itself, any group wishing to register under this Act must apply and receive approval from the Cabinet through the relevant line ministry or based on law. For instance, the formation of a single Teachers Union was envisioned in the Education Act.
The Association Registration Act (1977) is the primary framework law for CSOs in Nepal. Registration under the Association Registration Act is required for an organization to function legally. Under the Act, an "association" means an association, institution, club, circle, council, study centre etc. established for the purpose of developing and extending social, religious, literary, cultural, scientific, educational, intellectual, philosophical, physical, economical, vocational and philanthropic activities, and also includes friendship associations.

The Social Welfare Act (1992) governs the provision of “social welfare” activity and “social service” activity. To receive foreign funding and implement programs with foreign support, local CSOs must receive advance approval from the Social Welfare Council (SWC).

The Local Self-Governance Act (1999) encourages local government engagement with CSOs in development work. The Act envisions that local governments will facilitate NGOs in the identification, formulation, approval, operation, supervision, and evaluation of the development program. The Act also encourages the private sector to participate in local self-governance to provide basic services for sustainable development.

The Company Act (2006) (paragraph 19, articles 166 and 167) provides the legal basis to register not-for-profit business organizations and consultancy companies. Registration requires at least five citizens coming together to promote any profession, business, intellectual, educational, social, charity or welfare activities, with a non-profit intent.

Pending NGO Legislative / Regulatory Initiatives

The Ministry of Foreign Affairs is holding consultations with other government agencies about setting up a new mechanism to further regulate and monitor foreign funding to international NGOs (INGOs). Deputy Prime Minister and Minister for Foreign Affairs, Narayan Kaji Shrestha, said "We are of the view that those INGOs receiving funds directly by bypassing the government must be checked. How can they operate without informing the government and without the approval of the government?" This is not the first time Nepal's government has tried to restrict INGOs. In 2005, the then royal regime had tried to regulate the INGOs, but the initiative failed following strong criticism from all quarters.

In May 2012, the Parliament unanimously endorsed the Anti-Money Laundering Act (First Amendment). The endorsement was the first major step in "improving the shortcomings in the Asset (Money) Laundering Prevention Act, 2008 as told by FATF [Financial Action Task Force]," said Dharma Raj Sapkota, chief of the Financial Information Unit (FIU) at Nepal Rastra Bank. However, a prominent human rights activist in Nepal says that more laws and restrictions are not the answer. "More and newer laws at the behest of [the FATF] are not going to solve the problem. If there is any discrepancy between domestic laws and international requirements, they can be addressed through suitable amendments to the existing laws."

As a result of advocacy efforts by the NGO Federation, the Government of Nepal has, in principle, accepted the need to reform the legal framework that governs CSO activity in Nepal. The government has thus asked the NGO Federation to develop recommendations to change the current legal framework.

In addition, the NGO Federation, in consultation with the Social Welfare Council, has drafted the Social Development Act and has shared the draft Act with various governmental institutions. It is uncertain, however, whether or not this draft Act will be prioritized.

Finally, a new draft foreign aid policy, which aims to regulate CSOs pursuing a watchdog role, is under consideration by government policymakers.

There are also reports that the Ministry of Finance is formulating a policy which would bring all foreign funding to its “notice.” However, the Ministry claims it does not intend to restrict funding to INGOs or add measures that would track foreign funding.

Legal Analysis

Organizational Forms

The primary legal form for CSOs in Nepal is the association, which in Section 2 of the Association Registration Act is defined as “an association, institution, club, circle, council, study centre etc. established for the purpose of developing and extending social, religious, literary, cultural, scientific, educational, intellectual, philosophical, physical, economical, vocational and philanthropic activities, and also includes friendship associations.”

In addition to the association, it is possible to register as a professional organization under the National Directorate Act (1971), or as a not-for-profit company under the Company Act (2006). The remainder of this report will, however, focus on associations, since associations are overwhelmingly the most common form of CSO in Nepal.

Public Benefit Status

Nepalese tax law recognizes a category of tax-exempt organizations which includes political parties and CSOs who request this status. For CSOs that have received a tax-exemption certificate from the Department of Internal Revenue, income from grants, donations, and investments is not taxed. The certificate remains valid so long as the CSO carries out the public benefit purposes mentioned in the organization’s by-laws and does not carry out income generating activities.

Barriers to Entry

Mandatory registration. Forming an association without registering the association is considered a violation that is subject to a fine. As per Article 3 of the Association Registration Act, “no person shall establish or cause to be established any association without having it registered pursuant to this Act.” Moreover, according to Section 12 of the Act, "If an association is established without having it registered pursuant to Section 3 or if an association is operated without having it registered pursuant to Section 7, the Local Authority may impose a fine of up to 2,000 Rupees on each member of the management committee of such an association.” The 2,000 rupee (26 USD) penalty imposed on “each member of the management committee” may in some cases be costly enough to deter people from participating in founding the association. (That said, associations are generally not punished for operating at the local and district level without registration.)

Permissible Founders. First, foreign persons do not have the right to participate as founders of an association or members with voting rights. The law requires all of the founding members to submit their citizenship certificates upon application for registration. The requirement of citizenship certificates, in practice, excludes not only foreigners from enjoying the right to association, but also the many people who are born and live in Nepal but do not possess citizenship certificates. Foreigners can, however, be honorary members (without voting rights) of associations.

Second, as per Section 4 of the Association Registration Act, “any seven or more persons willing to establish an association shall submit to the Local Authority an application setting out the following details of the association, accompanied by one copy of the statute of the association, and with the prescribed fee.” The required minimum threshold of 7 founding members seems arbitrary, in that the government rationale for not allowing 3-6 people from forming an association is not clear.

Third, the District Administration Office (DAO), which is vested with the responsibility of registering associations, is not adequately staffed with competent professionals. The lack of capacity can significantly delay the registration process, especially considering the ever-increasing number of people interested in forming associations in Nepal.

Barriers to Operational Activity

Mandatory Re-registration. Associations are required to renew their registration annually. The renewal process requires the association to submit a progress report, including audit, minutes of the annual general meeting, and the plan for the next year. The renewal fee is 500 rupees, but organizations that do not renew are subject to a penalty which increases incrementally each year that the registration is not renewed. After five years of not renewing, an organization is subjected to a 5000 rupee (63 USD) fee on top of the unpaid annual renewal fees. If the registration is not renewed within five years, the registration will automatically be cancelled. As a result, associations that voluntarily suspend activities for five years are forced to pay the 5000 Rupee fee plus the unpaid annual renewal fees to begin operating again or, alternatively, must establish themselves anew, which is a burdensome and costly process.

Reporting Requirements. Reporting to responsible state agencies, such as the District Development Committee and District Administration Office (DAO), is required and is part of the registration renewal application. In addition, all associations are required to undergo an annual audit conducted by a certified accountant or a registered auditor appointed by the annual general assembly. If an organization fails to submit the proper financial documentation to the DAO, the DAO may impose a fine of up to 500 Rupees on each member of the management committee.

Section 22(2) of the Social Welfare Act reinforces the audit requirement for social organizations or institutions affiliated with the Social Welfare Council by requiring them to “submit an audit report to the [Social Welfare] Council within six months after the completion of the fiscal year along with the detail descriptions of last year’s progress and next year’s work and activities.” Section 18, Sub-Section (5) of the Social Welfare Act provides that if the Social Welfare Council “so wishes, [it] may inspect or cause to inspect the accounts document along with cash and kind of the social organization and institutions affiliated with the Council at any time.”

Dissolution. Section 14 of the Association Registration Act states that “[i]f an Association is dissolved due to its failure to carry out the functions pursuant to its Statute or for any other reasons whatsoever, all the assets of such Association shall devolve on Government of Nepal.” This provision raises two concerns. First, it does not provide a limited list of objective grounds for dissolution. Instead, dissolution may follow where there is a failure to carry out statutory functions or “for any other reasons whatsoever”, thus opening the door to the exercise of subjective government discretion. Second, upon dissolution, the assets of the associations are transferred to the State. This rule also applies to associations that terminate their operations voluntarily. Such a rule creates perverse incentives in the government’s regulatory role. The preferred practice is for any remaining funds to be transferred to another CSO performing the same or similar activities as the dissolving organization, especially in cases where the CSO is designated as a public benefit or tax-exempt organization.

Foreign CSOs. Foreign CSOs can establish branch offices under a general agreement with the Social Welfare Council, but they must implement their programs through local CSOs by entering into project-specific agreements. This can be a burdensome process because the project-specific agreement requires approval from as many as seven different ministries.

Barriers to Speech / Advocacy

There is no legal provision expressly prohibiting advocacy activities. Indeed, many Nepali CSOs pursue advocacy activities. There is a perception, however, that CSOs must be “non-political”, which deters some organizations from engaging in activities that support or oppose particular government policies. Whenever CSOs participate in a public demonstration to advocate for a public issue, they are vulnerable to being accused of engaging in “political” activities. But again, there is no express restriction on “political” activities in the Nepali legal framework.

Barriers to International Contact

There are no barriers to cross-border communication. CSOs are free to communicate with whomever they wish.

CSOs must, however, receive prior permission to receive funding from outside the country on a case-by-case basis. Details are found in the following section.

Barriers to Resources

While CSOs in Nepal are allowed to use resources from both domestic and foreign sources, CSOs must receive prior permission to receive funding from outside the country on a case-by-case basis.

According to the Social Welfare Act, social organizations and institutions wishing to receive any kind of assistance from the Government of Nepal, foreign countries, international social organizations and institutions, missions, or individuals shall submit a project proposal and application along with other details to the Council as prescribed for approval. After receiving an application, the Council shall provide permission in coordination with the concerned ministry or agency within 45 days. The review process is lengthy because each funder for a particular project needs to be vetted. Section 16(2) of the Act states that no permission for annual assistance may be given to projects that are “against the national interest,” but what “against the national interest” means is not defined.

For projects of up to Rs 200,000 that will be finished quickly, organizations need only give prior notice to the Council, and submit a report to the Council within three months of the completion of said work.
CSOs must also receive prior permission from the Ministry of Home Affairs to engage in public fundraising.

In July 2012, The Ministry of Foreign Affairs started asking International Non-Government Organizations (INGOs) to register with the Aid Management Platform at the Ministry of Finance, a process which NGOs have criticized as lengthy and bureaucratic and vulnerable to corruption. In addition, a July 1 Cabinet decision made it mandatory for anyone taking any kind of foreign aid or loan to seek prior “suggestions” from the Ministry of Foreign Affairs.

Reports

UN Universal Periodic Review Reports	Universal Periodic Review: Nepal (2011)
Reports of UN Special Rapporteurs	Report of the HC on the human rights situation and activities of her office, including technical cooperation, in Nepal (A/HRC/19/21/Add.4)
USIG (United States International Grantmaking) Country Notes	Not available
U.S. State Department	2010 Country Reports on Human Rights Practices: Nepal Advanding Freedom and Democracy Reports, 2010: Nepal
Failed States Index Reports	Foreign Policy: Failed States Index 2012
IMF Country Reports	Nepal and the IMF
International Commission of Jurists	Not available
International Center for Not-for-Profit Law Online Library	Nepal

News and Additional Resources

While we aim to maintain information that is as current as possible, we realize that situations can rapidly change. If you are aware of any additional information or inaccuracies on this page, please keep us informed; write to ICNL at ngomonitor@icnl.org.

General News

USAID’s two decades support to HIV/AIDS in Nepal (September 2013)
The United States Agency for International Development (USAID) organized a special event to commemorate the 20th anniversary of its partnership with the Government of Nepal and other stakeholders in supporting the national response to HIV/AIDS. Over the last two decades, USAID has invested more than US $80 million as part of its remarkable legacy of effective HIV/AIDS programs with the successful implementation of six consecutive, tailored and evidence-based HIV projects in the country (including the ongoing Saath-Saath project) and other smaller projects as well. USAID’s continuous contributions through these pioneering projects have made real impacts in preventing new infections and increasing access to quality services for key affected populations.

Civil society representatives picket UCPN (M) office (May 2013)
Senior civil society representatives picketed the UCPN (Maoist) headquarters in Perisdanda and urged the party to favour cancellation of the Constitutional Committee’s recommendation to appoint former chief secretary Lokman Man Singh Karki as a chief of the Commission for Investigation of Abuse of Authority (CIAA). Addressing the gathering, civil society representative Charan Prasai urged the Maoist leadership to hear their plea and recall the 2006 Janaandolan. “We humbly request the top leaders of the party to respect the people’s mandate,” he said. The civil society members also shouted slogans in support of democracy. They said the country is headed towards regression and that the civil society should rise to the occasion and bring the country back on the democratic track.>

‘Emerging autocracy’ in Nepal (February 2013)
Former Chief Justice Anup Raj Sharma expressed alarm at the ‘emerging autocracy’ in the country as well as formation of a new government under Chief Justice Khil Raj Regmi. Sharma also blamed the ‘syndicate of political parties’ for pushing the nation into a situation wherein it is headed towards autocracy. “If the state failed to break the syndicate system of transport services‚ it will be even more difficult to break the political syndicate system‚” Sharma said‚ adding‚ “I practiced as a lawyer for 30 years and a judge for more than six years but I never saw such the constitution being misinterpreted in this manner‚” he added. -

Liberal phase of Civil Society (January 2013)
Read a short excerpt from the recently published book "The Civil Society-State Interface in Nepal."

Slow erosion of democratic institutions hampers accountability (December 2012)
The Asian Human Rights Commission (AHRC) released its annual report on the state of human rights protection in Nepal through 2012 on the occasion of the 64th Human Rights Day. This year the world human rights community is celebrating with the theme of "Your voice, your right. Your voice counts", stressing the importance of participation and inclusion in democratic institutions to ensure a better protection of the rights of all.

Civil society asks PM to cede power for consensus (November 2012)
Arguing that a fresh election was not possible without the formation of an all-party government, civil society leaders on Thursday asked Prime Minister Baburam Bhattarai to step down from the post to pave the way for such a government.

Nepali civil society called on to kick-start truth and reconciliation process (October 2012)
With the release of a landmark report on breaches of international law committed in the ten years before the 2006 peace deal between the Nepali Government and the Communist Party of Nepal, the United Nations human rights chief Navi Pillay highlighted her concern over the failure to create promised transitional justice mechanisms to address past human rights violations. Accompanying the 233-page Report’s release is a database of some 30,000 documents – known as the Transitional Justice Reference Archive – which aims to provide Nepali institutions and civil society with the means to kick-start the process of seeking truth, justice, and reconciliation for the crimes committed during the 1996-2006 conflict.

Editorial highlights negative public perceptions of NGOs in Nepal (July 2012)
There is a strong feeling among people from different walks of life in Nepal that international funding is not transparent and that many Nepali NGOs are misappropriating funds that they receive. Moreover, there is a misconception that NGOs are not accountable. As a result, many people demand strong regulation and support the idea that NGOs should be brought into the scope of the work for the Commission for Investigating Abuse of Authority (CIAA), a high level authority that mainly investigates corruption. Kantipur, a national daily, has demanded this in its one of the editorials that reflects the mentality of society and some NGOs as well.

Government plans to to tighten restrictions on foreign funding (July 2012)
Nepal's ministry of foreign affairs (MoFA) is holding serious consultations with other government agencies to regulate International Non-Government Organisations (INGOs) operating in the country. The ministry is set to come up with a formal mechanism at the cross-ministerial level to regulate and monitor the organisations. “We are of the view that those INGOs receiving funds directly by bypassing the government must be checked,” said Deputy Prime Minister and Minister for Foreign Affairs, Narayan Kaji Shrestha. “How can they operate without informing the government and without the approval of the government?” he said. Another official said, “We are also looking into their funding sources; how funds and the sources are canalised.”

Chairman of the Rastriya Prajatantra Party calls for a government “led by civil society” (July 2012)
Chairman of the Rastriya Prajatantra Party (RPP), Kamal Thapa, has said that only a government led by civil society can hold the new elections in a fair and transparent manner. He stressed that the new Constituent Assembly should have only 250 to 300 members and that there is a need to hold a fresh referendum on the issues of the Hindu religion, constitutional monarchy and federalism. Nepal is currently passing through a political crisis with the parties having failed to draft the constitution due to disagreement over whether the states should be federated on the basis of single ethnicity or multi-ethnic cultural-geographical basis.

NFN held consultative meeting on aid transparency (May 2012)
The NGO Federation of Nepal (NFN) held a national consultative meeting on increasing access to aid information for NGOs in Kathmandu on 9 May 2012. The findings of a survey among NFN member NGOs about the availability and accessibility of information on aid resources in Nepal were shared and discussions were held on the issues among the stakeholders. The study was undertaken to find out information needed, the best ways for the NGOs to get such information and best practices on aid transparency. The programme is supported by Aidinfo, a development initiative.

Consultation meeting of Nepali civil society on Least Developed Country IV conference (March 2012)
In the context of upcoming Least Developed Country (LDC) IV conference going to be held in Istanbul from 9-13 May 2011, NGO Federation of Nepal (NFN) organized a consultation meeting with representatives of some civil society organizations on 23 March 2011 at its meeting hall. The prime objective of the meeting was to consult among CSOs to forge common understandings and views on behalf of civil societies of Nepal for LDC IV conference.

Multi-stakeholder dialogue on UNCAC (February 2012)
The government of Nepal has ratified the United Nations Convention against Corruption (UNCAC) in 2011. But, no headway seems to have been made towards the implementation of the Convention. More and more cases of corruption are surfacing. Unfortunately, the culprits have been able to escape legal actions due to lack of effective implementation of different laws and regulations. In this context, NGO Federation of Nepal (NFN) and Transparency International Nepal (TI-Nepal) jointly organized a dialogue on 15 February 2012 in Kathmandu to put pressure to the government of Nepal, parliamentarians and political parties for the effective implementation of UNCAC. The programme is supported by Delegation of the European Union to Nepal.

A roundtable meeting aiming for consensus on partnership for development in Nepal (February 2012)
It is suggested that a workable and effective partnership between the state and non-state actors is fundamental to harnessing the strengths of these different actors to national development. However, a lack of cooperation and coordination between the state actors and non-state actors has been a major challenge in development effectiveness in Nepal.

The foregoing information was collected by the ICNL NGO Law Monitor partner in Nepal, Uttam Uprety.