Minister for Foreign Affairs Chakra Prasad Bastola (left) talking to the Minister for Foreign Affairs of Greece, George Papandreou upon his arrival at TIA on an official visit to Nepal on Sunday.

NRB directs state-owned banks to tighten lending

By Gopal Tiwari

KATHMANDU, Dec 17 - At a time when the government is mulling over the hand-over of two state-owned banks’ management - Nepal Bank Limited (NBL) and Rastriya Banijya Bank (RBB) - to foreign party, Nepal Rastra Bank (NRB) has directed them to control lending until the new management takes over in April 2001.

In a new Central Bank directive, state-owned banks have been asked to carry out lending activities very "cautiously", that is, with every approval to be sanctioned by General Manager of the Bank and the Board of Directors (BoD). The new directive was issued under NRB Act 2012, clause 22.

A foreign party is expected to take over the management of NBL, effective April 2001 as per the Nepal’s Financial Sector Reform Project. The new provisions in the banks’ lending come as a strong impediment to already ‘crippled’ banks. The lending of these banks is sure to decline in next four months ending April 2001, hitting hard the small and big investors equally, said a source in NBL.

In a strong worded NRB’s letter to NBL, the bank management is required to classify their borrowers and inform the monitoring committee formed by NRB, within seven days and extend loans only to "good loan track-recorders".

After the central bank directed NBL on December 11, 2000 to control lending, Board of Directors (BoD) of the NBL immediately endorsed it and also directed the management not to carry out any further lending, said the source at the bank. "NRB’s initiative is a new tool in a `transitional phase’ of the banks to control lending in an ad-hoc basis." However, RBB’s board is yet to decide anything on such lending, it is learnt.

Earlier provision allowed lending through departmental chiefs in the bank. In the new directive, the central bank has instructed to delegate lending authority only to the branch chiefs outside the Kathmandu valley, it is said.

Talking about the new provision, Ram Babu Pant, Deputy Governor of the central bank, says, "NRB took the decision with a view to tighten lending and reform banking". This will help the banks to increase recovery rate and bring reforms in lending activities, Pant said.

However, NRB’s decision is a big shock to the employees of NBL.

Kiran Shrestha, President of Nepal Bank Employees Association (NBEA) worried, "If such provision is required, it would distract big and potential customers, and thereby make a big loss to the bank in present competitive market." He said that NBEA has already submitted a memorandum to the bank management to stop such activities in lending provisions, on Friday, December 15, 2000.

He also said that monitoring of the bank is good, but to control lending in such a way would retard the bank in the long run. "Only by centralizing authority, good returns cannot be achieved," he added.

NBL has a total deposit of Rs. 35.50 billion and loan and advances of 23.40 billion as of June 2000. Similarly, RBB has a total deposit of Rs.37.19 billion and loan and advances of Rs. 29.71 billion.

Forty-two companies had applied for management contract of NBL and RBB on October 31 as per the NRB’s notice in The Economist issue dated September 30, 2000. The government decided to hand-over the management of these two state-owned banks following an investigation by KPMG Barnet Group, an international audit firm, which had declared two banks as "technically insolvent". KPMG report had pinned the net negative worth of NBL in the range of 6-10 billion rupees, while the figure for RBB was estimated between 9-15 billion rupees. The combined losses of the two banks represent 4.5 to 8.5 per cent of Gross Domestic Product and 24 to 45 per cent of the budget in 1999.

Kadirgamar rules out immediate revival of SAARC Summit

Post Report

KATHMANDU, Dec 17 – The Sri Lankan Foreign Minister Lakshman Kadirgamar arrived here Sunday in a renewed effort to revive the SAARC summit. But instead of the optimism he exuded when leaving Colombo, Kadirgamar sounded frustrated upon arrival from New Delhi.

"The SAARC summit will not be revived soon," the visiting Sri Lankan leader said, immediately after his arrival at Tribhuvan International Airport. Instead, he held out the prospects for holding the sub-regional grouping’s technical committee meetings early next year, followed by the standing committee meeting, probably in April.

Kadirgamar’s bid to revive the summit of the South Asian Association for Regional Cooperation – which groups Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka - hit rough weather during his stay in New Delhi.

On Saturday, he told journalists in Delhi that the estranged relations between India and Pakistan have come in the way of the revival of any summit-level meeting, a point he reiterated today.

"The present situation between India and Pakistan does not allow the holding of the Summit soon," Kadirgamar said. Speaking about India’s response to Sri Lanka’s current initiative, Kadirgamar said that India was "very positive" about the efforts that aim at reviving the lower-level meetings. However, "it (summit meeting) is not on the cards in the foreseeable future."

He added that he was mainly concentrating on scheduling the meeting of the SAARC Standing Committee that consists of foreign secretaries of all the seven member nations. The meeting could take place in April if everything works out, he said.

"There (Standing Committee meeting) the prospects are good," said the Sri Lankan foreign minister, adding, "We are going to wait and see how the programme in the first quarter next year works out." He was referring to the seven technical committee meetings that are due next year. He also said that a review of these meetings will be held at the end of March.

The first such meeting on transport is slated to be held on January 5-6. India too is participating in the meet, said the minister.

According to him, these meetings will prepare the agenda to be discussed at the Standing Committee meet.

Kadirgamar further said that he would visit Pakistan, Bangladesh and Maldives next month after the end of the holy month of Ramzan.

Giving reasons for his visit to Nepal, he said it was the right thing to do as Sri Lanka, present Chair of the sub-regional grouping, had not been able to hand over the torch to Nepal due to the delay in hosting the SAARC summit.

After the meeting with his counterpart at Foreign Ministry at Shital Niwas, Foreign Minister Chakra Prasad Bastola said that the two ministers discussed steps to revive the SAARC process and "an overview of bilateral issues".

SAARC has been in limbo since late last year when India asked that the Kathmandu Summit, scheduled in November 1999, be postponed due to the military takeover in Pakistan, it’s arch rival.

Rebel ex-minister denies no-trust move against Koirala

Post Report

KATHMANDU, Dec 17 - The man who once waged a campaign to oust Prime Minister Girija Prasad Koirala has denied fresh reports that the rebel camp within the governing Nepali Congress was preparing to move a no-trust motion against the prime minister.

Former minister Khum Bahadur Khadka, whose sacking from the cabinet in August precipitated a crisis within the NC, ruled out such a no-trust campaign and also denied that he was leading the campaign, if there was one.

"There won’t be any proposal of no-trust against the Prime Minister and I am not leading any campaign" said Khadka today at a Face-to-Face programme with reporters here. "This is a rumour and only in the papers."

Khadka’s comments hold special significance at this point in time when the crucial general convention of the country’s most prominent party, the NC, is only a month away. Soon after his sacking in August, Khadka was seen as the man behind the signature campaign demanding that Koirala let go either the party presidency or the premiership. When asked why the no-trust motion did not seem possible soon, Khadka said "may be there is not enough support for it."

Khadka, who has lately become known more as a supporter of former Prime Minister Sher Bahadur Deuba who is challenging Koirala for the party presidency, said that he was firmly supporting Deuba till now. But he added that he is going to present some "proposals" at the meeting of Central Working Committee (CWC) to be held on Tuesday. "I will decide whom to support once I present my proposals to the central committee."

The comments are meaningful since Khadka is known as a powerful insider within the NC and his support is deemed crucial for both Koirala and Deuba to prevail in the party elections.

Some of that reputation, however, was blown over in the immediate aftermath of his sacking in August when despite his attempts, Koirala remained in his seat. The sacking however precipitated a crisis within the party which was resolved only after an understanding between Koirala and his nemesis, former party president and ex-prime minister Krishna Prasad Bhattarai.

However, on Sunday, Khadka said that the understanding was not implemented.

"The party did not follow the understanding reached in the central committee about the active membership," said Khadka. "And there have been massive irregularities in the party’s local and district level election. Should anything go wrong in the party Girija Prasad will be the first person to be held responsible for this followed by Krishna Prasad."

Answering queries about the Maoist’s People’s War, he said that the Home Minister had made blunder in Dinesh Sharma’s case.

"Dinesh Sharma should have been handed over to Padma Ratna Tuladhar who was mediating for talks between the government and the rebels," said Khadka. "We have acted feebly by presenting Sharma like that."

Speaker raps govt for its ineptitude

Post Report

POKHARA, Dec 17 - Speaker of the House of Representatives Taranath Ranabhat on Sunday held the government responsible for the week-long closure of schools all over the kingdom.

"Those accountable towards the nation should not be mute spectators," said the Speaker, adding that the situation was such that it needed only two people with a red ribbon to force the closure of schools. He was speaking here today at the west regional seminar on strengthening parliamentary system.

Speaker Ranabhat stressed on both the ruling and opposition parties to be responsible towards strengthening the parliamentary system. Admitting that distortions had cropped up while functioning under the present system, the Speaker blamed hung parliaments for the malaise. He added it was not only the political parties that have not executed their roles properly, but also the intellectuals and the civil societies.

Ranabhat lamented that no one showed proper sensitivity and protest if somebody merely took the name of the Maoist (to spread terror). He also criticised the government for not displaying enough courage to counter the rebels. "Is it the Maoists who have gained in strength or is it we who have become weak?"

The Speaker also criticised the plan to station the units of the Royal Nepalese Army (RNA), only at the district headquarters to thwart any assault by the rebels. "If the RNA personnel do not go beyond the headquarters, then will the citizens outside keep on suffering the brunt of Maoists’ attack?" he asked.

Drive against meter tampering

Post Report

KATHMANDU, Dec 17 - Police officials claimed today that they have intensified their campaign against doctored taxi and tempo meters, that automatically display higher fares than fixed by the government, while ferrying passengers .

According to Sub-Inspector Sita Ram Hachethu at Kalimati Police Post, more than 12 such taxies were seized in a random police check conducted for an hour in his area on Sunday. Similarly, a dozen more taxies were seized plying with doctored meters in Maharajgunj area.

A high level police official said that the campaign against the doctored meters, launched last week, was intensified starting today.

Drivers of the meter taxis and tempos have been cheating passengers by tampering with their meters commonly known as "earthing". "Earthing" is done by connecting the meter with a metal, usually hidden under the driver’s seat, which automatically displays higher fare.

Most of the guilty taxi drivers have confessed that they had to resort to "earthing" after their business drastically went down with the introduction of cheap-fare micro buses.

A taxi meter that had undergone "earthing" showed a fare of Rs. 47.50 while ferrying passengers from Kalimati to Kalanki. Fare in the same meter under normal conditions is Rs. 28.60. "The meter is just for demonstration. We fix our meters according to the status of the passenger and make a profit ranging from Rs. 12 to Rs. 35 per kilometer," the taxi driver revealed.

Police have been launching similar campaigns against the cheating taxi and tempo drivers in the past. But, have not been able to totally stop the practice.

With winter chill, US grappling with post-election fever

By Akhilesh Upadhyay

NEW YORK, USA, Dec 17 - The last rays of fall sunshine have given way to long nights and harsh winter. The mercury has taken a plunge, and a cold wave has settled in much of America, and will continue right through December, January and February.

Fallen leaves have long been cleared from the sidewalks, and leaf-less trees stand up as ghostly stumps, brown-black, swaying to the howling wind. Yes, it is getting chilly here in the world’s financial capital.

As much as the cold weather, however, it is the economic slowdown that dominates the news in networks and newspapers. But there is relief ... at last that America has someone to take charge of all this next January.

There is also relief that both the Republicans, who will occupy the White House the next four years, and the outgoing Democrats are keen to make up for the lost time after five weeks of partisan rancor. American politics isn’t any less partisan than Nepali or Indian, but at the end of the day everyone believes in drawing a boundary line. The battle lasts until a concession speech from the loser. But that took a long time in coming this year.

Indeed, the Gore-Bush contest was the longest battle for presidency this century, lasting for five suspense-filled weeks, with all the eyes trained on the Florida recount, and courts giving contradictory verdicts. But for America it’s all over now and it’s time to move on.

President-elect George W. Bush has named Gen. Collin Powell as the first member of the cabinet, and there are speculations already that Vice President Al Gore may get a second shot at presidency in 2004.

Gore did his presidential hopes no harm with his Dec. 13 concession speech, which has elevated him to a statesmanlike stature. He made no attempt to hide his displeasure over the U.S. Supreme Court ruling that abruptly stopped the Florida recount, giving Gov. George W. Bush Florida’s 25 electoral votes, and presidency.

But Gore was careful to strike a positive note. America is a country where leaders feel strongly about their legacy, and politicians are careful not to pander too much to the partisan crowd. They are already beginning to talk about the Gore comeback in 2004.

"This is America," Gore declared in his eight-minute televised address. "Just as we fight hard when the stakes are high, we close ranks and come together when the contest is done."

He reminded Americans of the turning point in the country’s history after the 1860 presidential race, which pitched Abraham Lincoln, perhaps America’s greatest president, against Stephen Douglas, a great leader who never became president.

Lincoln was contesting on the Republican ticket, and Douglas as a Democrat "Partisan feeling must yield to patriotism," said Douglas after his loss to Lincoln. "I’m with you, Mr. President, and God bless you." America was deeply divided between the Northern and Southern states on the slavery issue in the 1850s-60s.

To Lincoln slavery was a moral wrong and there would be no compromise. Douglas’s Democratic Party, on the other hand, said it would leave it in the hands of the states to decide whether they would support slavery. History has been kind to people who like Gore won the popular vote but lost presidency on the electoral count.

Andrew Jackson, who was denied presidency in 1824 by the House of Representatives despite having won most popular votes and electoral votes, bounced back to win two straight presidential contests in 1828 and 1832. Buoyed by the overwhelming popular support, he went on to establish the president’s executive power, and the Democratic Party.

Analysts are already saying that the U.S. Supreme Court that voted 5-4 to stop the Florida recount has had its stature "diminished", if not "tarnished." The court, they argue, voted along partisan lines: the conservatives, who are the supposed proponents of judicial restraint and state powers, overturned the Florida supreme court decision on recount.

Bush, 54, the first man this century to take presidency without winning popular vote, realizes he has no choice but to take the Democrats into confidence the next four years. He is well aware that in the end it was only 500-plus votes that gave him the presidency.

His first choice for cabinet Gen. Powell, a Gulf war veteran, is as popular among the Democrats as he is with the Republicans. The new secretary of state is also the first black to hold the all-important position of secretary of state. Other than Powell, who was born in South Bronx, couple of other New Yorkers — Mayor Rudolph Gulianni and Rick Lazio — are expected to be in the Bush cabinet. Lazio lost to first lady Hillary Clinton in the New York senatorial in November.

RPP plans to propose new bill on citizenship

Post Report

KATHMANDU, Dec 17 - Former Minister and General Secretary of Rastriya Prajatantra Party (RPP), Pashupati SJB Rana today said RPP is planning to propose a Bill giving alternative to the sixth amendment in the Citizenship Act, in the forthcoming 19th session of the parliament.

"Since the sixth amendment in the Citizenship Act - 2020 has potential threat to the national sovereignty, we have initiated action to propose a Bill replacing the former," Rana said.

Speaking at a talk programme organised by RPP District Working Committee, Kathmandu, Rana said, and "The current problem is the difficulty the poor of the Terai belt of the country face in acquiring the citizenship certificate. The party views this issue seriously".

The eighteenth session of the parliament had endorsed the amendments with full support from the lawmakers of the ruling Nepali Congress. The Bill is yet to be approved by His Majesty the King. The RPP along with the main opposition party CPN-UML and other lawmakers had boycotted the session during its endorsement.

According to Rana, the RPP has formed a seven-member committee under the chairmanship of Ram Narayan Shrestha, RPP Central Working Committee member, to prepare the proposal.

According to the new provision passed in the last session, one can easily acquire the citizenship certificate if he/she is born within the country’s boundaries irrespective of his/her parent’s origin and nationality.

Addressing the programme, advocate Prof Keshav Bhattarai said, "This act (passing the Bill) of the NC lawmakers was totally against the Constitution of the Kingdom of Nepal - 2047". The Constitution has clearly depicted three ways of acquiring Nepali citizenship - ancestry, naturalisation and honourary. "The lawmakers cannot make the fourth way challenging the Constitution. It is against the spirit of the Constitution," Bhattarai said.

"The NC lawmakers cannot play with the national identity by unilaterally deciding on citizenship laws," he added.

RPP Chairman of Kathmandu Constituency Number 1, Nawaraj Simkhada, said the programme was organised to prevent the Bill from being approved by the King. "If the Bill is approved, the existence of Nepal will be in peril and the National Sovereignty will be threatened," he added. He also appealed the "Palace" not to approve the Bill.

Former Prime Minister and RPP leader Lokendra Bahadur Chand, RPP CWC member Padma Sundar Lawati and Jog Mehar Shrestha also addressed the programme and castigated the amendments.

IYV-2001 kicks off in capital

Post Report

UNDP Resident Representative Dr. Henning Karcher addressing the opening ceremony for the launch of International Year of Volunteers 2001 which kicked off in Kathmandu on Sunday.

KATHMANDU, Dec 17 - International Year of Volunteers 2001 kicked off today with the opening of Volunteer Exhibition here at Bhrikuti Mandap.

On Nov 28 last month, UN Secretary General Kofi Annan opened the International Year of Volunteers (IYV) 2001 in New York by urging governments and institutions worldwide to recognise and celebrate the vital contributions of volunteers, according to IYV 2001, National Steering Committee Secretariat. The Nepalese government was also a signatory to such a proclaimation.

Speaking at the programme, Minister for Science and Technology Surendra Chowdhary said that volunteers are the real strength of a nation who contribute to nation-building.

Henning Karcher, UNDP Resident Representative said, "There are 87 nepali nationals serving as UN volunteers in places such as East Timor, Kosovo, Sierra Leone, and Afganistan," adding, "Nepal ranked as the fifth biggest supplier of international UNVs in 1999".

Speaking further he said that the Government of Nepal, by calling upon volunteers and building partnerships with civil society, can help increase the efficiency of public services, and ensure that they reach more people.

Member of the National Planning Commission Dr Jagadish Chandra Pokharel who is also the Chairman of the National Steering Committee of IYV 2001 stressed the importance of voluntary services in the development of communities of Nepal.

Stalls have been put up at the two-day exhibition by various voluntary organisations working in Nepal.

Families of ‘missing’ decide to take to street

Post Report

DAMAULI, Tanahun, Dec 17 - The families of people missing in police custody for their suspected involvement in the People’s War waged by the underground CPN (Maoist) have decided to take to the streets to coerce the government to make whereabouts of their family members public.

The families of 15 persons who have been missing since the government’s "Kilo Serra Two" operation have set-up an agitation committee in this district which will organise series of protest programmes to demand the whereabouts of the missing.

The families organised a programme "human rights situation in Nepal and the question of whereabouts of those missing under custody" at Khairenitar, Tanahun today.

According to Shekhar Nath Mishra, chairman of the agitation committee their agitation programme will be kick off with a protest programme in Kihun VDC of Tanahun district on Wednesday and a protest programme in Pokhara on the same day. "We will decide our further protest programmes after that," said Mishra.

The families of — district secretary of the All Nepal Women’s Association (ANWA-Revolutionary) Saraswati Adhikari, member of ANWA Kalpana Pant, Kamraj Thapa, Tikaram Ale, Krishna Shrestha, Ram Chandra Mishra, Dharma Parajuli, Janaki Ranabhat and Tika Ranabhat have demanded that the government made their whereabouts public soon.

Likewise, other missing are law practitioner Rajendra Dhakal, former chairman of district committee of ANNFSU (Revolutionary) and member of United People’s Front Tanahun Shriram Ghimire, treasurer of ANNFSU (Revolutionary) Narayan Pandit, Chija Bishwakarma and Pratibha Gahatraj of Arunodaya.

According to the families, Bhishma Raj Poudel and Dan Bahadur Bote who were taken into custody recently have also been missing.

District Police Office Tanahun had released Geeta Shahi who was arrested from Bariphant, Barbhanjyang, after keeping her in the custody only for ten days. Police has filed a case for crime against the state against her.

Parents and family members of the missing urged the human rights groups and activists, lawyers, journalists and others to help them demand the whereabouts of their loved ones.