The long-talked-about transitional justice fund has come into existence after the government endorsed and published its regulations in the Nepal Gazette.

Clause 23 A of the Act, revised in August last year, envisions a fund which would be spent to conclude the long-pending process. The fund, however, had not materialised in the absence of regulations to guide its setup and the mobilisation of contributions.

“The fund has come into being,” said Man Bahadur Aryal, joint secretary at the Ministry of Law, Justice and Parliamentary. “A separate account to deposit the money to the fund will be in place in a day or two.”

Just two days after the fund was created, the government decided to accept a $2.1 million donation from the Swiss government. A Cabinet meeting on Tuesday decided to accept the money to be spent in the transitional justice process.

Even as the Swiss Embassy in Nepal had been willing to contribute to the fund months ago, delay in its formation held the donation back. Over a year after an amendment to the Enforced Disappearances Enquiry, Truth and Reconciliation Commission Act, the fund formally came into existence on Sunday with the publication of the regulations in the Nepal Gazette.

The Act envisions all tiers of government and parties to the armed conflict contributing to the fund. It also expects contributions from Nepali citizens and organisations as well as foreign governments, organisations and international agencies. The Pushpa Kamal Dahal government had allocated Rs1 billion to the fund in the fiscal year 2024-25. However, the allocation was frozen due to the failure to set up the fund.

The current national budget also has earmarked the same amount for the fund. Officials say Rs1 billion sanctioned by the government will soon be transferred to the fund.

A rough estimation by the law ministry last year showed Nepal would need at least Rs40 billion to conclude the peace process. During a meeting with representatives of various bilateral and multilateral partners and the United Nations Resident Coordinator’s Office in Kathmandu last year, the government had urged them to contribute to the fund. While most missions and the UN pledged technical and logistical support, none except the Swiss Embassy committed to monetary contribution.

The government is optimistic about receiving donations from different agencies once the process to investigate the insurgency-era crimes and deliver justice takes its course.

The fund’s money, according to the regulations, will be spent only on interim relief, relief and reparation packages to the victims of the Maoist insurgency (1996-2006).

A seven-member panel led by the law minister will decide the mobilisation of the fund. The panel will also have two representatives from conflict victims and one from among human rights activists or legal experts.

Officials at the transitional justice commissions say they have received assurances from different diplomatic missions and the UN Resident Coordinator’s Office for technical support and capacity building for staffers of the two commissions—Transitional Justice Commission (TRC), and the Commission of Investigation on Enforced Disappeared Persons (CIEDP). Officials from the resident coordinator’s office had held meetings with the TRC officials where they proposed the support.

“The fund has finally been set up, but we also need TRC’s regulations, adequate staff, and a proper working place to expedite our work. We have received a positive response from the government. We hope it happens soon,” said Tika Dhakal, a member at the TRC.

The TRC alone has received close to 80,000 complaints while the CIEDP has 2,500 cases to investigate. However, six months since their formation, the two commissions have yet to start probing these cases.

The Act sets four years to complete the task. They effectively have three and a half years to investigate all the complaints, and recommend prosecution and reparation as deemed necessary.