Upload
nib-l
View
217
Download
3
Tags:
Embed Size (px)
DESCRIPTION
R&D_NewsBrief_14thJul
Citation preview
R&D
Economic Research & Business
Development
1
Date: July 14, 2010
Highlights
Government officials, economists and industrialists have urged the
government to address economic, monetary and development issues through
special arrangements after the government failed to present the general budget
2010-11 in time. Finance Minister Surendra Pandey has presented a Rs 110.2-
billion Special Budget on July 12.
The business community and economists have pointed out that delay in
presenting a full-fledged budget will hinder the country‟s economic growth
and private sectors‟ investment plans. At an interaction on „Delay in Budget
and its Impact in Country‟s Economy‟, organised jointly by Federation of
Nepalese Chambers of Commerce and Industry (FNCCI) and Society of
Economic Journalists of Nepal (SEJON) on Tuesday, economists said that
disturbances in regular budget presentation cycle would ultimately hamstring
the overall economy.
The current fiscal year (FY) saw the completion of only two hydro projects in
the country. According to the Economic Survey released by the government,
only Patikhola (0.996 MW) and Seti Second (0.979 MW) were completed in
this year.
Deposit Insurance and Credit Guarantee Corporation on Tuesday enacted
Deposit Guarantee Bylaw, paving way for the implementation of deposit
insurance scheme -- which will guarantee small depositors their money back
even if the bank and financial institutions (BFIs) go bust.
The number of subscribers to Ncell‟s GSM mobile service went up by 0.6
million during the first quarter of 2010 bringing the total number of
TeliaSonera subscribers in Nepal to 2.4 million.
Five star hotels in Kathmandu Valley have raise banquet prices by as much as
50 percent. Compared to past few years, they have raised prices by 30 to 50
percent this year.
Kantipur Television (KTV) Managing Director Kailash Sirohiya on Tuesday
said KTV was planning to broadcast its programmes in the United States.
Addressing a programme organised to mark the seventh anniversary of KTV
on the premises of the Kantipur Publications in Tinkune, Sirohiya said the
KTV was effortful to widen its broadcast range. “We aim to make our signal
available in every part of the world,” he added.
The Nepal Stock Exchange (NEPSE) registered a gain for the second
consecutive day rising 3.03 points to settle at 464.65 points on Tuesday. An
increase in the sub-indices of hydropower companies, commercial banks and
R&D
Economic Research & Business
Development
2
development banks lifted the secondary market. Hydropower companies led
the gainers with a growth of 24.81 points followed by commercial banks and
development banks posting gains of 3.87 points and 2.71 points respectively.
The parliament today set July 21 as date to elect a new prime minister,
prompting intense backroom negotiations among the three major parties -the
UCPN-Maoist, the Nepali Congress and the CPN-UML.
A meeting of 22 smaller parties Tuesday passed a 'condemnation note' against
the major three - Unified CPN (Maoist), Nepali Congress (NC) and CPN-
UML - for their failure to reach a consensus in the process of forming the new
government within the two deadlines given by the president.
Nepali Congress leader Shekhar Koirala has claimed that the new government
will be lead by his party's vice president and parliamentary leader Ram
Chandra Poudel. Speaking at the Reporters Club Tuesday, Koirala said the NC
is taking initiative to form the new government under its leadership and that
Poudel will be the Prime Minister.
CPN-UML Deputy chairman Bamdev Gautam today said Chairman JhalaNath
Khanal was likely to lead the next governmentment. "UML might lead the
next government with the participation of all the three parties," Gautam told
party cadres here. "But the next government must win the confidence of all the
CA members. If not so, then at least twothird members must be in favour of
the next government."
The United Nations (UN) has defended the involvement of UNMIN in
preparing a plan for integration and rehabilitation, saying the political mission
is working within its mandate.
The Public Accounts Committee (PAC) of the Legislature-Parliament has
intensified investigation into the decision of the Ministry of Foreign Affairs
(MoFA) to award the multi-billion contract of printing and supplying the
Machine Readable Passport (MRP) to French firm—Oberthur Technologies.
The parliamentary panel has asked the MoFA to furnish all the dossiers related
to the global bidding process within five days.
After eight months of circumstantial investigations, the Nepal Army (NA) has
given a clean chit to Major Niranjan Basnet, who was sent back from a UN
peacekeeping mission in Chad last December for his alleged involvement in
human rights violation in the Maina Sunar case.
The government has sent invitations to 51 mountainous countries for a
meeting on climate change scheduled to be held in Kathmandu on October 4
and 5. The Cabinet, on June 23, decided to host a ministerial level meeting in
Nepal. Prime Minister Madhav Kumar Nepal had announced the meeting at
the Copenhagen summit on climate change held in December 2009.
The fate of alleged international serial killer Charles Gurumukh Sobhraj, who
has been behind bars for almost seven years on a murder charge, will be
R&D
Economic Research & Business
Development
3
decided tomorrow. The Supreme Court Justices Ram Kumar Prasad Shah and
Gauri Dhakal will pronounce the verdict tomorrow.
Spain and Italy have suspended inter-country adoption from Nepal, joining
other countries which have taken similar steps accusing Nepal´s adoption
system of being non-transparent and unaccountable.
Nepal Police has started groundwork to request Interpol to issue Red Corner
Notice against four persons involved in the abduction of Dr Bhaktaman
Shrestha, Executive Director of BP Koirala Memorial Cancer Hospital,
Chitwan. The notice seeks arrest of wanted persons, with a view to extradition.
The four kidnappers, including Bhimsen Pandit and Rohit Paliwal Agrawal are
at large. Police, however, have apprehended three associates — Badri Prasad
Dhungana, Sunil Shrestha and Nabin Chhetri.
POLICY:
`Financial issues should be tackled through monitory policy'
Government officials, economists and industrialists have urged the government to
address economic, monetary and development issues through special arrangements
after the government failed to present the general budget 2010-11 in time. Finance
Minister Surendra Pandey has presented a Rs 110.2-billion Special Budget on July 12.
The Special Budget is silent on economic issues that the country have been facing in
the recent years. It will affect the whole economy if the country does not take
immediate remedial measures, said Jagadish Chandra Pokhrel, vice-chairman of the
National Planning Commission (NPC) in an interaction, jointly organised by the
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the
Society of Economic Journalist Nepal (Sejon) today. Kush Kumar Joshi, president of
FNCCI, said that budget delay has kept investors in a dilemma.
There will be no new investments until a full-fledged budget is presented, he said.
Industrial sector has been suffering from power shortage, labour dispute and strikes,
he said.
However, he said the drawbacks could be overcome through special arrangements.
“We should identify the areas which did not get due attention and address them
through short-term and long-term measures,” he said. creating panic among the
people is not a solution, he said.
R&D
Economic Research & Business
Development
4
Former Governor of the Nepal Rastra Bank (NRB), Dipendra Bahdur Chhetry,
advised the government to address financial issues through monitory policy. Some
lapses of the Special Budget can be made good by good monitory policy, he said.
Well-designed monitory policy can reduce liquidity crunch and promote industry
through effective reforms in the banking and financial sectors, he said.
Prof Dr Bishwambhar Pyakurel expressed grief over the people suffering due to
irresponsible behaviour of politicians.
The economy will have a wide-ranging impacts of the delay in the general budget, he
said. “If the government does‟t invest, how can we expect investments from the
private sector,” he said. Finance Secretary Rameshwor Khanal echoed the same. This
budget can‟t bring the economy back on track, he said. Major problems of the
economy will remain silent until the next full-fledged budget.
In general, it will further destabilise the economy if alternative corrective measures
are not taken in time, he said.
Dr Chiranjivi Nepal termed the current economic situation as the result of political
impropriety. “If the political parties will not be responsible, the economy will
collapse,” he said.
Liquidity crunch will deepen, investment environment will not improve, and the
government can‟t mobilise resources, if the situation continues for long, he warned.
Presenting a paper on the weaknesses of the Special Budget and its implications on
the economy, Pradeepman Baidhya, president, Tax and Revenue Committee at
FNCCI, said the liquidity crunch will be aggravated and the industrial sector will not
escape from flight of investment.
THT
July 14, 2010
‘A peanut is not a meal’
JUL 13 - The business community and economists have pointed out that delay in
presenting a full-fledged budget will hinder the country‟s economic growth and
private sectors‟ investment plans.
At an interaction on „Delay in Budget and its Impact in Country‟s Economy‟,
organised jointly by Federation of Nepalese Chambers of Commerce and Industry
(FNCCI) and Society of Economic Journalists of Nepal (SEJON) on Tuesday,
economists said that disturbances in regular budget presentation cycle would
ultimately hamstring the overall economy.
At a time when country was looking for a full-fledged budget to address bottlenecks
in the economy, the government‟s special budget will widen existing trade deficit,
constrain revenue mobilisation and hit private sector confidence, said economists.
R&D
Economic Research & Business
Development
5
They pointed out that the political leadership had failed to realise the country‟s
economic agenda and priorities.
“Investors are in a dilemma whether to invest or not as there is no concrete
programme and policy of the government in the special budget,” said Kush Kumar
Joshi, president of the FNCCI. Joshi said that trade deficit would further widen in the
next fiscal year.
“The private sector has demanded stimulus packages to address the growing trade
deficit issue, industrial insecurity and load-shedding, all in vain,” added Joshi.
Economist Biswombhar Pyakurel described the advance budget as too meagre. He
said that the public distribution system had become a joke. “No political parties is
serious about the country‟s economic agenda,. This will adversely impact the
country‟s economy in the long run,” he added. This is the second time in three years
that a full-fledged budget has been delayed.
Economist Dilli Raj Khanal said that if the political class fails to address the country‟s
economic agenda, a crisis would erupt. “There is need for political consensus to
address the deepening problem,” said Khanal. Economist Chiranjivi Nepal said that as
the country is witnessing a huge balance of payment deficit and decline in foreign
currency reserves, delay in full-fledged budget would worsen the economic crisis. “It
is unfortunate that no political party is serious about economic issues,” he lamented.
Finance secretary Rameshwor Khanal said that investment would decrease if the
economy does not stay stable. “Delay in budget announcement will discourage both
domestic and international investors, and without investment we cannot have
economic growth,” he said.
He said that the targeted economic growth for the next fiscal could be affected. “The
government plan to provide incentives and facilities to production and agriculture
sector for import substitution and accomplishing the three-year plans will also be
affected,” he said.
http://www.ekantipur.com/the-kathmandu-post/2010/07/13/business/a-peanut-is-not-
a-meal/210442/
Current FY sees completion of just two hydro projects
13 July 2010The current fiscal year (FY) saw the completion of only two hydro
projects in the country.
According to the Economic Survey released by the government, only Patikhola (0.996
MW) and Seti Second (0.979 MW) were completed in this year.
The supply of electricity is not in tandem with its fast increasing demand, thus the
country has long been reeling under the yoke of power outage.
R&D
Economic Research & Business
Development
6
During the last FY, the number of customers had risen by 10 percent to reach
1,677,000 while in this FY the number of the same increased by 12 percent to surge to
1,879,000.
If the supply continues to fall short of the demand, the country will be bound to face
the load-shedding of more than 16 hours a day.
As per the Nepal Electricity Authority (NEA), the supply of power is 70 percent less
in the peak period of the demand.
The two hydropower projects completed this year belong to the private sector.
The survey poignantly states that not a single project was commenced by the
government in this year. Similarly, no project under construction saw the light of the
day during the period.
The coming FY will see the completion as well as power generation from projects like
Hewa (5.4 MW), Siuri (5 MW), Aankhukhola (7 MW), Maikhola (2.4 MW) and
Lower Piluwa (0.99 MW). All these hydro ventures are being undertaken by the
private sector.
In this FY, the consumption of electricity by the industrial sector, households,
commercial sector and other areas is expected to stand at 38.10 percent, 41.70
percent, 6.66 percent and 13.44 percent respectively.
Meanwhile, the government is all set to develop the country's oldest Farping Power
Plant (FPP) into a 'Hydroelectricity Museum' and promote it as a tourist spot. Installed
in 1911 at Farping of Kathmandu, this project coined the Nepalese history of
electricity generation with a rated capacity of 500 kW.
NEA last month celebrated the 100th year of power generation in Nepal keeping in
view the first energy produced from FPP. nepalnews.com
BUSINESS & ECONOMY:
Deposit Guarantee Bylaw comes into operation
July 14: Deposit Insurance and Credit Guarantee Corporation on Tuesday enacted
Deposit Guarantee Bylaw, paving way for the implementation of deposit insurance
scheme -- which will guarantee small depositors their money back even if the bank
and financial institutions (BFIs) go bust.
Going by the bylaw, Nepali BFIs can now insure their savings and fixed deposits up
to Rs 200,000 at the corporation from July 17. Such facility can be bought for the
deposits of natural persons only; meaning the corporation will not insure deposits of
BFIs institutional clients like business firms and legal entities.
R&D
Economic Research & Business
Development
7
If the client BFI went bankrupt and liquidated, the corporation should safely refund
money of the depositors within 90 days of the submission of depositors´ list by the
liquidator.
“The service, which will start from the coming fiscal year, will completely safeguard
the deposits of the people maintaining savings and fixed accounts of as much as Rs
200,000 at BFIs. We believe this will up people´s confidence on the banking system,”
said an official at Ministry of Finance.
However, depositors must know that all banks and financial institutions still might not
pledge such guarantee because the government has not made deposit insurance
compulsory.
“Since joining the scheme is voluntary, the customers opening the accounts must
categorically ask the bank whether or not it has covered their deposits from possible
risks,” the source said.
To get the service, the BFIs will need to pay service charge of 20 paisa per every Rs
100 worth of insured deposit sum to the corporation. Only the BFIs that are not
declared as troubled institution can participate in the scheme.
The corporation will also monitor the BFIs credit portfolio and performances
regularly. But, if the BFIs failed to maintain the capital fund as instructed by the
Nepal Rastra Bank, they will need to pay 10 paisa extra for every Rs100 worth of
insured deposit.
“We have made a conscious effort not to add cost to the BFIs. Hence, the rate has
been fixed at nominal level,” said a source.
The corporation has also endorsed a plan to raise its paid-up capital to Rs 1 billion in
order to build its capacity to shoulder the new liability. It has also sought additional
Rs 1 billion from the government as seed money to build the compensation fund.
Under its recapitalization plan, the corporation is increasing its paid-up capital to Rs
250 million within the next one month. For the purpose, it has called special general
meeting on Wednesday.
It is further mulling over injecting additional Rs 350 million from its internal source
and has also invited stake investment from BFIs to increase the capital to Rs 1 billion.
Apart from this, the corporation is also hopeful of getting assistance from the World
Bank and Asian Development Bank, as the multinational donors have indicated of
pledging the support in case Nepal introduced the mechanism of safeguarding
deposits of laymen.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=20996
R&D
Economic Research & Business
Development
8
2.4m Ncell users across the nation
JUL 14 - The number of subscribers to Ncell‟s GSM mobile service went up by 0.6
million during the first quarter of 2010 bringing the total number of TeliaSonera
subscribers in Nepal to 2.4 million.
All the Eurasian markets including Nepal of TeliaSonera have registered an increase.
Growth was strongest in Uzbekistan with a rise of 2 million subscriptions to 5.1
million. Kazakhstan posted a growth of 0.3 million subscriptions.
The total number of subscriptions in the Eurasian consolidated operations increased
by 0.7 million subscriptions, according to a financial report of TeliaSonera based on
the first quarter.
Business area Eurasia countries comprise Nepal, Uzbekistan, Kazakhstan, Azerbaijan,
Tajikistan, Georgia and Moldova. The business area is also responsible for developing
TeliaSonera‟s shareholding in Russian MegaFon (44 percent) and Turkish Turkcell
(38 percent). The main strategy is to create shareholder value by increasing mobile
penetration and introducing value added services in each respective country, states the
financial report. “Ncell subscription has increased because of better network with
better service and value added services,” said Sanju Koirala, corporate
communication manager of Ncell. “Customer trust has increased after our re-
branding.”
TeliaSonera had re-branded its operations in Nepal and Tajikistan to Ncell and Tcell
respectively in March 2010. The re-branding marks the companies‟ entrance into a
new phase of dynamic development and will allow new segments in the market to be
targeted.
Following the re-branding from Mero Mobile to Ncell, the multinational company has
come up with a number of attractive schemes for ordinary customers and corporate
clients to expand its market.
The closed user group (CUG) targeted at the corporate segment, reduction in the price
of GPRS, introduction of lower international long distance call rates and the recent
launching of the cheapest handsets with Ncell SIM cards are some examples of
Ncell‟s promotional moves.
“We have received a very good response from the handset scheme,” said Koirala. She
added that Ncell would be coming up with more attractive offers for its customers in
the upcoming fiscal year. Operation of 3G mobile service, launch of Blackberry and
customized package service for corporate clients are also in the pipeline.
http://www.ekantipur.com/2010/07/14/business/2.4m-ncell-users-across-the-
nation/318425/
R&D
Economic Research & Business
Development
9
Star hotels raise banquet prices
July 13: Five star hotels in Kathmandu Valley have raise banquet prices by as much
as 50 percent. Compared to past few years, they have raised prices by 30 to 50 percent
this year.
Hotels say they had to raise prices due to rise in prices of food, oil, vegetables and
spices in the market as well as rise in salary and allowance of their staffers.
Interestingly, most of the star hotels fix prices after comparing prices fixed by other
hotels.
Raju Bikram Shah, senior general manager of Hotel Shangri-La at Lazimpat, said the
hotel had increased banquet price by 40 percent due to rise in prices of commodities
in the market.
The hotel at present is serving dinner at Rs 1,200 per plate (excluding VAT and
service charge) per plate. The price was just Rs 850 per plate a year before.
"The price a bit expensive because of hygienic food and quality service that we
provide," Shah said, adding, "The price would have been cheaper had we been a
banquet hall."
Shangri-La has the capacity to serve as much as 1,800 persons at a time. The dinner
includes Indian, Chinese as well as continental food and also live cooking and live
pasta counters. For cocktail party of about 80 persons, the hotel charges Rs 850 per
person (excluding taxes).
The hotel also provides catering service if there is a demand. It has been charging $7
per person for breakfast, $16 for lunch and $18-20 for dinner for guests staying in the
hotel.
Another five-star hotel in the town, Hotel Yak & Yeti has been serving dinner for
parties in the range of Rs 1,050 to Rs 1,350 (excluding taxes) per person. The hotel
has increased the price for its ´Standard Banquet Dinner´ by 20 percent as compared
to the last year´s price.
"Our dinner includes five different snacks, different varieties of meat and other food,"
said Prahlad Raj Kunwar, general manager of the hotel. Kunwar further added that
Hotel Yak & Yeti is popular for banquets due to its central location, capacity to serve
about 1,000 persons at a time and excellent parking arrangements.
The hotel boasts of the largest banquet hall in the Valley.
The hotel charges Rs 800 for breakfast, Rs 1,000 for lunch and Rs 1,050 for dinner for
its residential guests. Kunwar further informed that the hotel had even sold dinner at
Rs 5,000 per plate.
Radisson Hotel has also raised its banquet prices by 50 percent. "We have raised the
prices to Rs 1,200 per plate (excluding taxes) from Rs 800 of last year," said Kabir
Jung Gurung, food and beverage manager at the hotel. Gurung, however, added that
price depends on the menu.
R&D
Economic Research & Business
Development
10
The hotel is capable of serving about 1,000 persons at a time. It serves breakfast for
Rs 500 and lunch and dinner for Rs 1,000 per person for its residential guests.
Another popular five-star hotel - Soaltee Crowne Plaza - has been providing banquet
service at Rs 1,400 to Rs 1,500 per plate. Sources at the hotel say such dinner is
served at VIP parties. "We charge Rs 1,200 per person for cocktail dinner," the source
said, adding, "We have served dinner for Rs 2,200 to Rs 2,800 per plate depending on
the menu."
The hotel serves breakfast at $12, lunch at $14 and dinner at $18 for residential
guests. The banquet hall of the hotel is already booked for the coming three months.
Hotel de l´ Annapurna at Durbar Marg has also raised its banquet price from Rs 900
to Rs 1,200 per plate (excluding taxes). "We raise banquet prices as the prices of
edible commodities and other raw materials have skyrocketed in recent years," said
Dorjee Sherpa, general manager of the hotel, said.
The hotel offers breakfast, lunch and dinner package at Rs 8,000 per person for its
residential guests.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=20993
KTV marks 7th anniversary; plans to air in US
JUL 13 -Kantipur Television (KTV) Managing Director Kailash Sirohiya on Tuesday
said that KTV is planning to broadcast its programmes in the US.
Speaking at a programme organised to mark the seventh anniversary of KTV at
Kantipur Publications premises at Tinkune, Capital today, Sirohiya said that the KTV
is planning to air its programme in the US as part of its effort to extend its broadcast.
“We are aiming to extend our broadcast in every part of the world including the US,”
said Sirohiya.
He informed that the KTV has been changing its programmes and news style in line
with the times. KTV will bring changes in its programmes according to the viewers‟
desire and for their benefit said Sirohiya adding, “KTV has been always been playing
the role of a watchdog and we will give continuity to our job.”
While saying that KTV news will not be limited to just speeches and accidents, the
managing director added, “KTV will focus on making its news investigative rather
than confining itself to speeches and incidents. It will also try and cover the activities
of television broadcasting areas.”
During the anniversary function, best employee of the KTV and the winner team of
in-house friendly football tournament were awarded with certificates and prizes.
http://www.ekantipur.com/2010/07/13/top-story/ktv-marks-7th-anniversary-plans-to-
air-in-us/318403/
R&D
Economic Research & Business
Development
11
MARKET:
NEPSE up by 3.03 pts
JUL 14 - The Nepal Stock Exchange (NEPSE) registered a gain for the second
consecutive day rising 3.03 points to settle at 464.65 points on Tuesday.
An increase in the sub-indices of hydropower companies, commercial banks and
development banks lifted the secondary market. Hydropower companies led the
gainers with a growth of 24.81 points followed by commercial banks and
development banks posting gains of 3.87 points and 2.71 points respectively.
The double-digit leap in the index of hydropower companies was propelled by an
increase of Rs. 73 per share of Chilime Hydropower Company.
Meanwhile, insurance companies and finance companies lost 1.4 points and 0.81
point respectively. Share prices of 20 companies went up, 23 companies fell and 13
companies saw no change in their share prices. Among the 56 companies present on
the trading floor, Prime Life Insurance Company posted the highest gain of Rs. 270
per share while Everest Bank preference shares suffered the most, shedding Rs. 30 per
share.
http://www.ekantipur.com/2010/07/14/business/nepse-up-by-3.03-pts/318427/
POLITICS:
Parliament to elect PM on July 21
July 13 - The parliament today set July 21 as date to elect a new prime minister,
prompting intense backroom negotiations among the three major parties — the
UCPN-Maoist, the Nepali Congress and the CPN-UML.
Constituent Assembly Chairman Subas Nembang today informed the House about the
election schedule. As per the election schedule published by CA secretariat,
nominations can be filed till July 20.
While political observers foresee a Maoist vs non-Maoist alliance emerging during
the next few days, Maoist leaders privately confided that their party would not get to
lead the new government. The first option for the largest party in parliament is to back
a UML-led government. If that does not work UCPN-M could pitch for a new
coalition headed by a Madhesi leader, informed sources said.
Maoists could back UML Chairman Jhalanath Khanal or Tarai Madhes Loktantrik
Party President Mahantha Thakur as the prime minister, according to party sources.
R&D
Economic Research & Business
Development
12
“Maoists could also propose Madhav Kumar Nepal as prime minister, but such a
probability looks a bit remote at the moment.”
Nepali Congress, pressing for a government under its own leadership, appears to
present parliamentary party leader Ramchandra Paudel for the next PM. The party
remains opposed to a UML-led coalition succeeding the Nepal-led government.
UML is a divided house with the stronger faction supporting an NC-led government
while Chairman Khanal himself has his eyes cast on the prime minister‟s chair,
backed by UCPN-Maoist.
As the political situation looks extremely fluid since Nepal stepped down on June 30,
it has been difficult for the political pundits to hazard any guess as to who becomes
the prime minister or what kind of a coalition is likely to take shape.
Paudel‟s position seems to be stronger among the three prospective candidates, but
there is also a chance that the Maoist bid to of get the PM from Madhesi party could
sabotage Paudel‟s prospects.
“Although, the CPN-UML may discuss the Maoist offer, it will be difficult to forge
consensus on the name of Khanal. Khanal‟s chances to get support from within the
party are minimal, as he has no moral ground to claim the post with the UML
parliamentary party already deciding not to lead a majority government,” said a UML
leader. “Khanal cannot stake claim to lead new government when there is no change
in situation after Nepal stepped down.”
Even as Paudel, Khanal and Thakur appear to be the front-runners, there is plenty of
room for last minute surprises, according to party sources.
http://www.thehimalayantimes.com/fullNews.php?headline=Parliament+to+elect+PM
+on+July+21&NewsID=249638
22 parties take big three to task for failing to reach consensus
13 July 2010: A meeting of 22 smaller parties Tuesday passed a 'condemnation note'
against the major three - Unified CPN (Maoist), Nepali Congress (NC) and CPN-
UML - for their failure to reach a consensus in the process of forming the new
government within the two deadlines given by the president.
According to Keshab Mainali, chairman of Chure Bhawar Rastriya Ekta Party, the 22
parties passed condemnation proposal against major three parties for not being able to
narrow down their differences for the sake of consensus.
"We agreed that the major three parties are responsible for creating the present
political turmoil by lingering the remaining tasks of peace process and constitution
writing," he explained, emerging out of meeting.
Today's 22-party meeting held at the parliamentary party office of Terai Madhesh
Loktantrik Party (TMLP) in Singha Durbar also concluded that major parties were
R&D
Economic Research & Business
Development
13
taking statute drafting for granted and that they were involving in a nasty tug of war
over the leadership of the new government.
According to Mainali, the fringe parties also decided to urge NC, UML and UCPN-M
to continue efforts for consensus to install a new government at the earliest possible
time. nepalnews.com
Gautam projects Khanal as consensus prime minister
CPN-UML Deputy chairman Bamdev Gautam today said Chairman JhalaNath Khanal
was likely to lead the next government. ment.
"UML might lead the next government with the participation of all the three parties,"
Gautam told party cadres here.
"But the next government must win the confidence of all the CA members. If not so,
then at least twothird members must be in favour of the next government."
Gautam was of the view that the next will be a consensus government even though the
deadline set by President Dr Ram Baran Yadav to form a consensus government had
already expired.
The President's extended deadline to form a consensus government expired on
Monday. Gautam ruled out possibility of the Unified CPNMaoist or Nepali Congress
leading the next government.
However, he said the Maoists were crucial part of the ongoing peace process and that
the parties shouldnot try to shy away from them.
"The new constitution cannot be drafted by sidelining the Maoists, as two-thirds of
CA members will be required to endorse the new constitution," Gautam told party
cadres.
THT
July 14, 2010
'Ram Chandra Poudel will lead new govt'
13 July 2010: Nepali Congress leader Shekhar Koirala has claimed that the new
government will be lead by his party's vice president and parliamentary leader Ram
Chandra Poudel.
Speaking at the Reporters Club Tuesday, Koirala said the NC is taking initiative to
form the new government under its leadership and that Poudel will be the Prime
Minister.
"The new government will be formed under Poudel within a week," Koirala said,
ruling out the possibility of a Maoist-led government.
R&D
Economic Research & Business
Development
14
"Anybody winning confidence of the parties could become Prime Minister if the
government were to be formed on the basis of consensus. But the current situation is
different," Koirala said. Alluding to the claim of NC general secretary Kul Bahadur
Gurung to the Prime Minister's post, he said nobody other than the leader of the
parliamentary party could make such a claim.
Speaking at the same programme, UCPN (Maoist) secretary CP Gajurel said his party,
too, had started homework for formation of the government.
"Our party's strength in the parliament is bigger than the NC and the UML combined.
How can they claim to form the government?" he questioned.
On a question regarding the reports of intra-party wrangling over the prime ministerial
candidate of the party, Gajurel said, "We have kept the option open. We can name
anybody --Prachanda or Baburam."
He also revealed that his party was engaged in negotiations with the UML in its bid to
form the new government. nepalnews.com
GENERAL:
UN defends UNMIN's integration plan
July 13: The United Nations (UN) has defended the involvement of UNMIN in
preparing a plan for integration and rehabilitation, saying the political mission is
working within its mandate.
“…the mission is acting within its mandate and consistent with calls by the Security
Council for the parties to take advantage of UNMIN´s expertise and readiness to
support the peace process and facilitate the completion of its tasks,” said Farhan Haq,
associate spokesperson for Secretary General Ban Ki-moon, during press briefing in
New York on Monday.
The global body´s defense of its political mission in Nepal comes in response to
Prime Minister Madhav Kumar Nepal´s public allegation that UNMIN breached its
jurisdiction by preparing a 60-week plan for rehabilitation and integration of Maoist
combatants.
On Monday, the government even lodged its official objection to UNMIN over the
plan, saying that preparation of the plan does not fall under UNMIN´s jurisdiction.
The government has argued that only the Special Committee for Supervision,
Integration and Rehabilitation of Maoist Combatants should make such plan under
Article 146 of the Interim Constitution.
The spokesperson further said on the controversy over the plan, “The issue dealt with
in the non-paper containing the timeline for integration and rehabilitation of Maoist
R&D
Economic Research & Business
Development
15
combatants is based on consultations by UNMIN, which has been consulting with the
main parties in Nepal for some time which have taken place with the full knowledge
of the government; this is not something new.”
Haq further said that the ideas related to the plan are part of UNMIN´s discussion
with the political parties and intended to facilitate forward planning of the
implementation of integration and rehabilitation of former Maoist combatants once
political decisions are made by the parties.
“The completion of UNMIN´s arms monitoring mandate, in large part, is contingent
on the parties agreeing on a plan to address the future of the Maoist army personnel,”
the spokesperson said.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=20972
PAC tightens MoFA screws
JUL 13 - The Public Accounts Committee (PAC) of the Legislature-Parliament has
intensified investigation into the decision of the Ministry of Foreign Affairs (MoFA)
to award the multi-billion contract of printing and supplying the Machine Readable
Passport (MRP) to French firm—Oberthur Technologies. The parliamentary panel has
asked the MoFA to furnish all the dossiers related to the global bidding process within
five days.
PAC held a meeting with senior MoFA officials, including Foreign Secretary Madan
Kumar Bhattarai, Chief of Protocol Muktinath Bhatta on second consecutive day
following the controversy about the “alleged procedural wrong” while awarding the
contract to the French firm.
PAC intensified discussions on the issue after the parliamentary committee received
complaints that reported the printer proposed by the French company was of
substandard quality. The PAC members claimed that they have received complaints
about the French company Oberthur, which is planning to provide substandard
passport copy and that Nepal‟s security concerns were not met properly while
awarding the contract.
They also mentioned that PAC was not satisfied with the clarification furnished by the
foreign secretary and his colleagues, so it has sought all the dossiers related to the
deal.
PAC has directed the MoFA to submit all the documents related to the tender process
for MRP printing, rate of the proposed bidding process, experiences of the bidding
company, all the requirements set by Public Procurement Act and Regulations, within
the next five days.
R&D
Economic Research & Business
Development
16
PAC has also directed the MoFA to submit legal paperwork, its decision, and opinion
in writing within five days.
PAC issued the directives following discussion with senior officials in Singha Durbar
on Tuesday.
Among the four applicants, the lowest bidder-Oberthur-was picked for the contract as
per the rules and procedures.
http://www.ekantipur.com/the-kathmandu-post/2010/07/13/nation/pac-tightens-mofa-
screws/210417/
Army gives Basnet clean chit, claims UN violated norms
July 14: After eight months of circumstantial investigations, the Nepal Army (NA)
has given a clean chit to Major Niranjan Basnet, who was sent back from a UN
peacekeeping mission in Chad last December for his alleged involvement in human
rights violation in the Maina Sunar case.
The Army Court Of Inquiry has concluded that Basnet is “innocent” and that he was
returned by the UN “against all international norms and regulations.”
It has been learnt that a decision to this effect was endorsed by the Defense Ministry
recently. NA had sent a letter to the ministry two months back defending Niranjan and
requesting that his case be withdrawn immediately.
NA has defended Basnet on the basis of the Military Act 1959 and the then Terrorists
and Disruptive Activities (Control and Punishment) Ordinance 2002 (TADA).
After several rounds of questioning, the three-member Court of Inquiry found that
Basnet was returned from the UN mission in a humiliating manner, accompanied by
escorts, something only done in cases of breach of discipline.
NA has also written to the UN, objecting to Basnet´s return without prior
consultations and in blatant oversight of a military court verdict given in the Sunar
case in 2005.
Asked to comment, Major General BA Kumar Sharma, chief of the NA Legal
Department, said, “Even going by the definition of the Military Act itself, it is clear
that the Army was acting against a common enemy then and functioning under
TADA,” adding, “Therefore there is no case against Basnet.”
NA has defended Basnet´s case as per Section 61 of the 1959 Act and Section 2.1 of
TADA, which states that a suspect can be taken into custody for interrogation. In
addition, the army has cited Article 24 (1) of the 1959 Act which states that offenses
involving army personnel when TADA is in force cannot be treated in a civilian court.
R&D
Economic Research & Business
Development
17
It has also quoted the Interim Constitution Section 24 (6) on fundamental rights,
according to which a person cannot be subjected to double jeopardy, or tried twice for
the same offense.
“The verdicts of our military courts are recognized internationally, so the UN has
flouted all norms in sending Basnet back,” a highly-placed NA source told
myrepublica.com. The source added, “This is also an attempt to discredit our
institution as Basnet´s case is a closed chapter.”
Basnet was patrol commander in Kavre district in February 2004, when Sunar was
brought to the barracks for questioning on suspicion of her being a Maoist informant.
She died in custody.
A General Court Martial in September 2005 found that three other officers -- Bobby
Khatri (Basnet´s commanding officer) and Captains Amrit Pun and Sunil Adhikari --
were guilty of various offenses. But Basnet was acquitted as he had only handed over
Sunar to higher officials. Basnet served with the UN Mission in Sierra Leone
(UNAMSIL) in 2006 before returning to an assignment in Nepal. He was sent back
from the UN mission for Chad and the Central African Republic (MINURCAT) in
December last year.
Kavre District Court had ordered Basnet´s suspension in September last year on the
basis of a case filed by Sunar´s mother.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=20995
Nepal invites 51 Mountain countries for meet
2010-07-14: The government has sent invitations to 51 mountainous countries for a
meeting on climate change scheduled to be held in Kathmandu on October 4 and 5.
The Cabinet, on June 23, decided to host a ministerial level meeting in Nepal. Prime
Minister Madhav Kumar Nepal had announced the meeting at the Copenhagen
summit on climate change held in December 2009.
Countries having mountains higher than 4,000 metres are included in this group. “Of
the invitees, 30 are developing countries, 11 are least developed and 10 are developed
countries,” said Batu Krishna Uprety, chief, Climate Change Division, Ministry of
Environment.
The meeting, scheduled for the last week of September, was postponed to October
because the United Nations Millennium Development Goal meeting coincided with
the event.
According to a source at the ministry, there were a few rounds of talks with donor
agencies working on climate change issues and they have shown interest in supporting
the initiative. “They agreed to the ministry‟s proposal of US$ 1,100,000 support to
organise the meeting,” said the source.
R&D
Economic Research & Business
Development
18
The ministry is holding the next round of meeting with concerned ministries and
donor agencies regarding fund commitment.
“Faster melting of ice in the Himalayas and other mountains across the world due to
global warming — a major cause for climate change — has made mountainous
countries more vulnerable. It is time to sit together and discuss how to raise the issue
globally. Nepal has taken the initiative as it is one of the most vulnerable countries,”
added Uprety.
International Centre for Integrated Mountain Development (ICIMOD) is technically
assisting the ministry. DFID, Embassy of Denmark in Nepal, European Union, World
Bank, Asian Development Bank and UNDP are also supporting it.
This is the largest meeting ever in history on the government‟s initiative.
http://www.thehimalayantimes.com/fullNews.php?headline=Nepal+invites+51+Moun
tain+countries+for+meet+&NewsID=249649
SC to decide Sobhraj's fate today
2010-07-14: The fate of alleged international serial killer Charles Gurumukh Sobhraj,
who has been behind bars for almost seven years on a murder charge, will be decided
tomorrow.
The Supreme Court Justices Ram Kumar Prasad Shah and Gauri Dhakal will
pronounce the verdict tomorrow. “Since this is a sensitive case, the full text of
judgment will be issued immediately after the pronouncement of the verdict,” an SC
source told The Himalayan Times on condition of anonymity. Sobhraj‟s lawyer Prof
Rajit Bhakta Pradhananga said the verdict in the sensational 1975 murder of US
backpacker Connie Joe Bronzich would be a precedent in Nepal‟s criminal legal
system, be it conviction or acquittal.
Last year Justices Shah and Dhakal began examining Kathmandu District Court and
Patan Appellate Court verdicts based on which the 65-year-old French national was
convicted for killing Bronzich. The government authorities, however, are yet to
decide whether or not Sobhraj will face charges in another murder case that has been
pending in the Bhaktapur District Court, involving the killing of Canadian national
Laurent Armond Carriere.
Sobhraj had moved the SC in 2006, challenging the lower courts‟ conviction. The
government, on the other hand, moved the apex court against the lower courts verdict
giving clean chit to Sobhraj in the fake passport case. SC, however, transferred the
fake passport case to the Patan Appellate Court.
“We hope that Sobhraj will be released,” Ram Bandhu Sharma, Sobhraj‟s legal
counsel told THT. Sobhraj‟s lawyers have argued that police had faked all documents,
including a hotel bill for food and beverages, in 2003 and implicated him in a
fabricated case.
R&D
Economic Research & Business
Development
19
The government attorneys, however, claimed that Sobhraj killed a Dutch tourist,
Henricus Bintanja, in 1975 in Bangkok, and used his passport to fly to Nepal. Here he
allegedly befriended Bronzich for a stash of valuable gems she had bought in India
and stabbed her to death. Bronzich‟s body was found near the Manahara river bridge
in Kathmandu.
The KDC had slapped 20-year jail term on Sobhraj and later the Patan Appellate
Court upheld the conviction based on circumstantial evidence — the bag of the
deceased found in Sobhraj‟s room, Sobhraj‟s telephone number mentioned in her note
book, modus operandi, his statement to the Indian authorities, witness accounts when
Sobhraj visited Nepal in 1975, description of his Nepal activities mentioned in a book
titled The Life and Crimes of Charles Sobhraj and the report of DSP Chandra Bir Rai.
The May 2009 decision of the Patan Appellate Court convicting Sobhraj in fake
passport case has weakened Sobhraj‟s case. Another setback for Sobhraj is that
prominent lawyers Badri Bahadur Karki, Basanta Ram Bhandari and Raja Ram
Dhakal have left his defence team.
http://www.thehimalayantimes.com/fullNews.php?headline=SC+to+decide+Sobhraj's
+fate+today&NewsID=249639
Spain, Italy suspend adoption from Nepal
July 14: Spain and Italy have suspended inter-country adoption from Nepal, joining
other countries which have taken similar steps accusing Nepal´s adoption system of
being non-transparent and unaccountable.
According to a member of the adoption group -- a loose forum of western countries to
discuss adoption related issues -- Spain and Italy are the latest in the league that has
decided to not adopt children from Nepal.
Nepal´s adoption system has been questioned by the western countries following
publication of a report by The Hague Conference on Private International Law, an
intergovernmental organization in February this year.
The report based on an investigation by a group of lawyers accused Nepal´s adoption
system of widespread abuse. It also called for suspension of adoption from Nepal until
the system is reformed.
Following the publication of the Hague report in February, eight western countries
have suspended adoption officially and unofficially from Nepal. They include
Canada, Denmark, Germany, France, Norway, Sweden, Switzerland and the United
Kingdom.
Nepal-based embassies of the EU countries and the United States have already asked
Nepal government to ensure transparency in adoption system and keep child rights
protection mechanism in place.
R&D
Economic Research & Business
Development
20
In addition, the United States in March had issues an alert notice to prospective
adoptive US parents, expressing concern over Nepal´s adoption system and the
accuracy of the information in children´s official files.
Secretary at the Ministry of Women, Children and Social Welfare Mahendra Shrestha
said that the ministry is will talk to the US embassy officials in this regard.
Meanwhile, The Hague Conference has once again questioned transparency and
accountability of Nepal´s adoption system even as Nepali mission in Brussels last
month had claimed that there have been reforms in the adoption system following the
enforcement of a 2008 regulation.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=20997
Cops to seek Red Corner Notice
2010-07-14: Nepal Police has started groundwork to request Interpol to issue Red
Notice against four persons involved in the abduction of Dr Bhaktaman Shrestha,
Executive Director of BP Koirala Memorial Cancer Hospital, Chitwan.
The Red Notice seeks arrest of wanted persons, with a view to extradition.
Four kidnappers, including key perpetrators Bhimsen Pandit and Rohit Paliwal
Agrawal are at large. Police, however, have apprehended three associates — Badri
Prasad Dhungana, Sunil Shrestha and Nabin Chhetri — involved in the hostage
drama.
Superintendent of Police Yadav Raj Khanal said Nepal Police decided to go for Red
Notice after the masterminds fled the country to evade justice. “As Dr Bhaktaman was
picked up from Chitwan, the District Police Office there will first file charges against
them and request Interpol Nepal Office at Nepal Police Headquarters to communicate
with Interpol Headquarters, in Leon, France in this regard,” he informed. “The
application will include 22 points clarifying why the Red Notice should be issued.”
An Interpol notice or International Notice is issued by Interpol to share information
between its members. “Interpol will only issue notices to help police track down
wanted criminals after verifying that all the conditions for processing the information
have been fulfilled,” informed SP Khanal.
Dr Bhaktaman was abducted on May 18 and taken hostage for 19 days. He was
blindfolded and kept captive in three separate houses in Chandol, Samakhusi and
Budhanilkantha for 17 days, leaving the police clueless.
He was set free on June 5 after the kidnappers secured ransom of 3.5 kg gold from the
victim‟s family in Kanpur, India. A senior police official informed that Pandit and
Agrawal had reportedly fled to India, while their two associates — Luppa Tamang
and Gautam Yonjan Lama had gone underground in Nepal. “Most probably, we will
request Interpol to issue Red Notice for the arrest of Pandit and Agrawal in the first
R&D
Economic Research & Business
Development
21
round as they are believed to have left Nepal to evade the police,” he said requesting
anonymity.
http://www.thehimalayantimes.com/fullNews.php?headline=Cops+to+seek+Red+Cor
ner+Notice+&NewsID=249644