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Government unfreezes the bank accounts of transport associations

The government has decided to unfreeze the bank accounts of transport agencies, paving the way to transfer their bank balance to their company’s bank account. The Cabinet, on Sunday, took such a decision for the transport bodies that have already transformed into companies from transport associations earlier.

The government, in May last year, had decided to freeze the bank accounts of transport entrepreneurs and officials of various transport associations after they refused to transform into companies and follow the government’s direction. A meeting attended by Home Minister Ram Bahadur Thapa, Minister for Physical Infrastructure and Transport Raghubir Mahaseth and Nepal Rastra Bank Governor Chiranjibi Nepal, among others, had decided to freeze the bank accounts of transport associations.

Later on, Transport Minister Mahaseth had made a u-turn on his earlier stance and lobbied alongside the transport entrepreneurs urging the government to revoke decision to freeze their bank accounts and properties.

As per Transport Committee Act 1956, in case a transport association is closed or seized by the government, all their properties will be nationalised.

Before the transport associations were converted into companies, there were nearly 300 transport entrepreneurs in the country. Among them, the government had seized the bank accounts of 60 entrepreneurs who were engaging in syndicate.

Saroj Sitaula, general secretary of Federation of Nepalese National Transport Entrepreneurs, claimed that the government unfroze the bank accounts of all transport bodies as they had agreed to support the government’s move to end transportation syndicate.

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