We won't allow bonus distribution: NOC Chair

REPUBLICA

KATHMANDU, Aug 11: Commerce Secretary and Chairman of Nepal Oil Corporation (NOC) Purushottam Ojha has announced that the corporation board will not allow NOC -- reeling under hefty accumulated loss and debt -- to distribute bonus to staffs.

We will not let distribution of bonus now, Ojha said Wednesday, referring to the instruction of the Commission for Investigation of Abuse of Authority (CIAA), which on Monday re-instructed the government not to allow distribution of bonus in public enterprise (PEs) suffering under accumulated loss.

NOC presently has accumulated loss of some Rs 8 billion and loans exceeding Rs 11.5 billion to settle to the government and financial institutions. Based on the government and CIAA´s earlier instruction, NOC board about three weeks ago had decided to halt distribution of bonus in the petroleum monopoly that earned profit after a gap of seven years in 2008/09.

After the two trade unions at the corporation announced protest against the management, NOC board scrapped its decision and agreed to decide on bonus as per existing laws.

“Our statement to take decision on bonus as per the laws does not mean NOC has been granted permission to distribute bonus,” Ojha said.

However, the Supreme Court´s verdict in favor of bonus on a similar case filed by Rastriya Banjiya Bank has set a precedent that staffs are entitled to bonus when the enterprise makes profit in a particular year, even if it is in accumulated loss.

“The instructions of CIAA are binding for us. Hence, as it has asked us not to let NOC workers walk away with bonus, we will act accordingly,” said Ojha.

Talking to media persons, Ojha further said that Ministry of Commerce and Supplies (MoCS) has already directed all PEs placed under it, including NOC, to strictly adhere to CIAA´s instructions.