Govt files cases against Maoist leaders

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KATHMANDU, Oct 31 - The government has filed cases of murder and robbery against prominent Maoist leaders including the general-secretary Prachanda and Baburam Bhattarai.

This comes a day after Prachanda demanded that the government make public the whereabouts of its comrades missing in custody and start releasing them. Home Ministry officials are claiming that the filing of cases is also a signal that the government is making the whereabouts of the Maoist rebels public.  

The source also said that a special court could even be formed to decide over the cases soon if the much-awaited talks between the government and the rebels show positive signs. 

According to reports, Prachanda is accused of murder in Lalitpur and robbery in Kavrepalanchowk, Parbat and Gorkha. Bhattarai is also accused of murder in Lalitpur, armed robbery in Parbat and some other criminal activities in Gorkha and crime against the state.

Cases have also been filed against other Maoist politburo members - Chandra Prakash Gajurel, Mohan Vaidya, Post Bahadur Bogati, Krishna Bahadur Mahara and Agni Prasad Sapkota.

The central committee members of CPN (Maoist) - Matrika Yadav, Dinesh Sharma, Ishwari Dahal, Pampha Bhusal, Hisila Yami, Haribol Gajurel, Narayan Sharma, Ishwari Pradhananga, Hitman Shakya and Hemanta Prakash Oli are also charged with several separate cases of murder and robbery.

In the filed cases, only Hemanta Prakash Oli has been stated to be in police custody and all others are stated to be at large. Dinesh Sharma is accused of murder in Salyan and Ishwari Dahal is accused of public offence in Kathmandu. Maoists have been demanding the government to make public the whereabouts of all its comrades including Sharma and Dahal. Other leaders against whom criminal cases have been filed are -- Laxmi Mudbari, Suresh Ale Magar, Krishna Sen, Shalikram Jamarkattel, Krishna Dhoj Khadka, Pawan Man Shrestha, Pitambar Giri, Kumar Dhakal, Bishnu Pukar Shrestha, Yan Prasad Gautam, Dev Gurung, Gyam Prasad Chalise, Jhakku Prasad Chalise and Shakti Lamsal.

50 applications on managing 'messy' banks so far

By Ameet Dhakal

KATHMANDU, Oct 31 - About 50 consultant and management groups, some of which are among the world class, have applied for the management contract of Nepal Bank Limited (NBL), the oldest bank of the kingdom and Rastriya Banijya Bank (RBB), the only state-owned bank, till today evening.

Since the official deadline for application ends at mid-night today and proposals can be submitted via e-mail, Nepal Rastra Bank officials expect more proposals even after the official hours.

According to the Bank source, though majority of the applicants are American and Europeans, management groups from Singapore, Malaysia, Sri Lanka, India and Nepal (in association with foreign consultants) have also applied to take on the challenging task of managing the messy banks.

All the five World Bank panellist consultant groups -- KPMG Barnet, Arthur Andersen, Deloitte and Pouche, Price Water House Coopers (PWC) and Ernst and Young International -- are also in the race to win the management contract.  

The more-than-expected response for the management contract of the bank is due to backing of the World Bank in the reform process of these ailing banks, say banking professionals. The management contract is being awarded under Nepal Financial Sector Reform Project supported by International Development Association, the World Bank. The management contract will be awarded in accordance with the policies and procedures of the World Bank, which the banking professionals say, would favour the internationally accredited management groups.           

The management contract of the bank will be initially for two years. The management team will be responsible for; taking complete control of day to day running of the banks, providing immediate help to stabilize the banks operations and restore their financial health to an acceptable level, working in close cooperation with a locally recruited accountancy team (recruited as part of these management contracts) to develop and strengthen the accounting capacity of the banks, developing a comprehensive human resource policy for the banks and designing and implementing an information technology plan for the banks.  

Nepal Rastra Bank had published a notice in The Economist on 30 September for management contract of these banks. The government decided to hand-over the management of these banks following an investigation by KPMG Barnet Group, an international audit firm, which declared two banks as "technically insolvent," - bankrupt, to use a more common terminology. 

The investigation report submitted to the government during the third week of May said, " the banks' lending process, loan files and the loan portfolio itself are deeply flawed and the banks are technically insolvent."

The report had pinned the net negative worth of NBL in the range of 6-10 billion rupees, while the figure for RBB was estimated in between 9-15 billion rupees. The combine losses of the two banks represent 4.5 to 8.5 percent of GDP and  24 to 45 percent of budget in 1999 - an amount enough to trigger a financial melt-down elsewhere under a prudent banking system.

IGP admits 'mistake' in police petro deal

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KATHMANDU, Oct 31 - Newly appointed Inspector General of Police (IGP) Pradeep Shumsher Rana today admitted to a "mistake" in the agreement between the Indian Oil Corporation (IOC) and Police Welfare Fund (PWF).

"There appears to be a mistake in the agreement between IOC and PWF," Rana said while being questioned by the parliamentary Public Accounts Committee (PAC) today.

IOC last year had signed a deal with PWF to rebuild a petrol station on the southern parameters of the police headquarters at Naxal.

In exchange, IOC got the exclusive rights to supply all lubricants and grease for the 45,000 personnel of Nepal Police for the next 15 years that would amount to millions of rupees.                              PAC formed a sub-committee to probe into the deal under the coordination of Dr. Prakash Chandra Lohani and has N. P. Saud and Krishna Lal Maharjan as members.

"In the agreement, one of the clauses says that money will be paid in full by Nepal Police and not by PWF and the agreement has already been in effect for the past few months," Lohani said.

IGP Rana admitted that it was a mistake on their part and would try to correct it with IOC. However, Lohani pointed out that if IOC didn't want such a thing to happen then there was no way that it could be changed.

In the clause of arbitration, it states that "any difference or dispute between the two parties shall be referred to sole arbitrator who will be the Director of Marketing at IOC or some official of IOC nominated by the director."

So if there was a claim made by PWF in such a case, IOC (which will be both judge and the defendant) will definitely win and PWF would most likely lose the case.

IGP Rana insisted that PWF was a non-government organization that is independent of the police force and that signing a deal with IOC was within its right.

However, Lohani pointed out that since all the members on the Board are not even elected and are automatically appointed among high ranking police officials, it could not be called an autonomous body. And like all NGOs are required by law, PWF is not even registered with the Social Welfare Council.

IGP Rana said now that he was aware of these flaws in the constitution of PWF, he would try to correct them.

The Memorandum of Understanding (MoU) to this arrangement was signed by IOC and PWF on September 17, 1999 giving IOC not only exclusive rights to supply the grease and lubricants but also gave its dealers the right to fix the price they want without negotiations.

PAC has asked the IGP to submit details on the amount of lubricants used by the police force.

Minister summoned over Lauda Air deal

Meanwhile, PAC probing into the controversial leasing of a Boeing 767 today decided to summon the Minister of Culture, Tourism and Civil Aviation.

After questioning Royal Nepal Airlines Corporation (RNAC) Executive Chairman Hari Bhakta Shrestha and other officials of the ministry, PAC Chairman Subash Nembang announced that it was summoning the Minister on Nov. 6.

RNAC had signed an agreement with the Lauda Air of Austria to lease a 12-year-old aircraft and has also sent over US dollars 1 million as lock up money.

PAC began to probe into the deal after RNAC signed the deal with the airline without tender bids and through direct negotiations.

"Since we unsuccessfully tried four times to lease the aircraft through tender bids, we were compelled to negotiate directly," Shrestha told PAC.

The proposal was forwarded to the Cabinet and was also endorsed by it. Financial Regulations require competitive tenders on every deal.

DPM asks rebels for more time

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KATHMANDU, Oct 31 - Deputy Prime Minister and Home Minister Ram Chandra Poudel has asked for more time from the Maoists to respond to their demands, according to Padma Ratna Tuladhar, prominent human rights activist.

Speaking to The Kathmandu Post Tuesday, Tuladhar said that the DPM had phoned him and asked him to convey to the rebels that "their (Maoists') demands were under consideration and to wait till a final decision is reached". "We are positive towards their demands which would create the right atmosphere for formal talks," the DPM reportedly told Tuladhar.

"Besides saying that there are procedural matters to be sorted out in the wake of Maoists' demands," said Tuladhar, adding "Poudel has also asked that the Maoists desist from violence till the talks process is over."

"I am going to convey the message today itself," said Tuladhar. The reaction of the Maoists to DPM Poudel's response could not be known today.

Highly placed sources in the government said that political affairs sub-committee under the Cabinet had informally discussed Friday's unofficial talks, brokered by Tuladhar, between Poudel and Rabindra Shrestha, central committee member of the underground Nepal Communist Party (Maoist). The prime minister, deputy prime minister, defence minister, foreign minister and information and communications minister are the members of the sub-committee.

Meanwhile, Sher Bahadur Deuba, convenor of the High Level Recommendation Committee or Resolution of Maoist Problem has started giving final touches to the Committee's report since the government has not shown any inclination to extend the Committee's tenure. Sources close to Deuba said that he would soon make a public statement on the issue.

Capital's houses to get new numbers

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KATHMANDU, Oct 31 - Keep your fingers crossed, the 100,000-odd houses built in the capital city will soon have new house numbers. Thanks largely to a Kathmandu Metropolitan City (KMC) project which is due to start next week.

The Metric Addressing System (MAS), a project under KMC's Kathmandu Valley Mapping Programme (KVMP), will give new numbers to all the houses built in the city's 35 wards. The project is expected to complete within nine months, according to Padma Sunder Joshi, Co-director of KVMP.

"We are trying to finish the entire works within nine months," Joshi told The Kathmandu Post Tuesday. "The new addressing system will be very much simple, scientific and flexible for a city like Kathmandu which is continuing to expand and grow."

Beginning next week, some 50 technicians will go from door to door collecting data and other information required to carry out the Rs 1.4-million project, according to him. The technicians will be assisted by the existing KVMP staff. Works will begin from Ward Numbers 1, 5, 11, 31, 32 and 33.

Under the project, the city's 35 wards of Kathmandu will be divided into six sectors on the basis of population density -- North Core, South Core, East, Centre, North and West. Likewise, all the streets of the capital will be categorized on the basis of their width after which numbers will be given. The project also plans to name the streets.

"Naming the streets of this historical city is one of the challenges facing us," Joshi said. "It is very sensitive a job. But we are careful. The KMC board--comprising Mayor, Deputy Mayor and Ward Chairmen and Members--will decide on the issue."

"After the names are confirmed, each house will be given a number according to its physical distance from the origin point of the main road," he added.

The programme plans to provide supplementary numbers to the houses built in small courtyards, and to those built along the street with dead ends.

According to KMC officials, MAS has already been introduced in a number of cities in the "French-speaking countries" and in Latin America. It was first introduced in Kathmandu some three month ago when the system was tested under a pilot project in Ward Numbers 2, 5 and 20.

"The growing number of houses is not going to affect this system and this will also help people find out the distance between a house and the main road," Joshi said.

Plans are underway to introduce the new system in other cities of the country such as Lalitpur and Damauli. It is learnt that KVMP is training the staff from these municipalities to replicate the new numbering project.