Presentation on the revised Asset Declaration (AD) Rules Presenter: Ugyen Dema

PRESENTATION OUTLINE Background on (AD) system 01 Background on (AD) system 02 Rationale for the revision of the AD Rule & necessary revisions 03 Roles & Responsibilities of the Head of Agency 04 Declaration period (AD Flow chart) 05 Penalty for breach

WHY? Public accountability tool to ensure transparency Asset Declaration (AD) WHY? Public accountability tool to ensure transparency and accountability in managing public resources by its custodians, the public servants. WHO? Public servants, their spouse(s) and/or dependents

What? ASSETS Expenditure

Rationale for Revision The AD Rule 2012 was revised due to following reasons: In accordance with section 38 (8) of ACAB, 2011; 2. Challenges in the existing rule (AD Rules 2012); a. No section in the rule defines non-declarant; b. Lack of clear reporting procedures; and c. Roles and responsibilities not clearly underlined. 3. Issues with the content of AD & the online AD system a. Current market value; b. Utility; and c. Return cases. 4. Widen the scope of AD by incorporating CoI provisions. (out side position and post employment arrangement)

Necessary Revision Filing of AD A covered person who is on leave without pay for one year or more is not required to file any declaration for that period. However, assets, income and liabilities of such period should be filed on the subsequent year of declaration after his/her assumption of office. Necessary Revision Filing of AD i. Annual Declaration (1st February to 31st March) Declare Assets, Income and liabilities for reporting year (1st January to 31st December). However, one need not file Annual AD for that year if the Assumption of office declaration falls during Annual declaration period. ii. Assumption of office (Within three months after becoming a covered person) Declare assets and liabilities acquired before the assumption of office. Not required to declare income and expenditure. iii. Vacation of office (Within one month before ceasing to be a covered person for planned exit and within one month after ceasing to be a covered person for unforeseen exit). Declare assets, income and liabilities for the period between annual declaration and vacation of office.

Annual Declaration Rule (10) 1st Feb.- 3 1st March Declaration Period Rule (11) 1st May – 31st May Late Declarant Rule (12) 1st June - Non-Declarant

AD Administration structure ACC CADA File AD Schedule I Report Agency ADA Agency ADA Agency ADA Agency ADA File AD Schedule updated: ask participants to refer to the Annexure I and II. Inform them to communicate accordingly. Schedule II

Changes in schedule As per Section 38 (2)&(3) of ACAB 2011 Schedule I (Public servants) Schedule II (Non-public servants) Gups Mangmis, Zhung Dratsang lopens, Drungchens and Rabdey Lam Netens and Specific service under Heads of universities each service group. .

No Current Market Value Annexure IV: Forms Important information on filing Asset Declaration Form III : Additional job/employment (Outside position) Form IV: Post Employment Arrangement/ Plan Form V (4) Personal savings -Bank deposits, cash in hand (including foreign exchange)& cash lent – exceeds your one month’s gross salary. Form 5. Convertible Asset -Works of art, jewellery, gold and other objects which exceeds a value of Nu.100,000/= in total Form VIII (2) Utility Need not declare No Current Market Value

Roles and Responsibilities of HoA Designate an ADA and notify the same to the Commission; Ensure that AD or information contained therein is secured and inaccessible to any person except as otherwise provided in the Rule; Examine AD for possible CoI situations in the decision making process and manage them accordingly as per the CoI Guidelines; Incorporate provisions for disciplinary actions for breach of this Rule in their respective Service Rules/Code of Conduct;

Cont. Roles and Responsibilities of HoA e) Incorporate AD as one of the requirements for issuing of No Objection Certificate by the agency for financial benefits on separation from the service; f) Impose penalties for breach of this Rule; g) Submit the agency's AD report and the Action Taken Report (ATR) to the Commission within the stipulated time frame; h) Support and share information with the competent authority for verification; and i) Educate and advocate on the Rule within the agency.

Penalty for breach Late Declarant: Rule (53)-shall be levied a fine equivalent to one day’s national minimum wage for every day until such failure subsists. Non-Declarant: Rule (54)- shall be levied a fine equivalent to one year’s national minimum wage. Incomplete Declaration : Rule no (55)-Shall be levied a fine equivalent to one months national minimum wage.

Contd… False Declaration: (Rule 56) shall constitute an offence of 'False Declaration' under section 64 of the Act and shall be dealt with accordingly. Repeated Offender: Rule (58)- For the second time - appropriate disciplinary action in addition to fines levied. More than two times- dealt with as per Rule 60. Failure to comply with the lawful demand: Rule (60)- shall constitute an offence of 'Obstruction to Justice' under section 113 (c) of the Act and shall be dealt with accordingly.

Contd… Failure to perform roles and responsibilities: ADA For the first time: Fine equivalent to one month’s gross national minimum wage. More than once: appropriate disciplinary action in addition to the fines levied. Failure to perform roles and responsibilities: HoA For the first time: Fine equivalent to one month’s gross salary. Collection and deposit of fine The fines levied under this Rule shall be collected through the issuance of a receipt and accordingly deposited with the Government Revenue Account.