Containing corruption

The Bills that never saw a chance for debate in Parliament are Corruption Control Bill and amendment to the Commission for Investigation of Abuse of Authority (CIAA) Act. But both  Bills are undoubtedly very important to combat cancerous corruption, spread across the country. And the country can no longer afford to spare corrupt parliamentarians, judges and  government officials as a result of lax law. Had the opposition parties not stalled the 19th winter session of Parliament to press the demand for Koirala’s resignation, the Parliament  would have at least, if not the endorsement of the Bill on corruption control, witnessed a discussion on such bills in Parliament. Former Prime Minister Girija Prasad Koirala had leased an Austrian Lauda aircraft for RNAC in which he was alleged  to have amassed millions of rupees illegally. The CIAA’s questionnaire to former Prime Minister Koirala indicated his direct involvement in the Lauda Air scam. Unfortunately, CIAA could not move beyond raising a few questions over Koirala’s role in the unscrupulous deal. 

Last August, the government tabled second amendment bill on the CIAA Act and Corruption Control Bill for discussions in Parliament. But those parliamentarians, who demanded for Koirala’s resignation, virtually crippled the functioning of the House, besides blocking the clearance of bills on corruption and parental property rights. No one can disagree that the  government does not need rules and regulations from time to time to deal with different situations. Nepali parliamentarians –be they belong to NC, UML or RPP- have misused their power and misdirected the public funds for personal benefit. Yet, there is neither any effective law introduced nor any action taken against such corrupt leaders. The Koirala government   came up with a 14-point agenda just to remain in power and misuse the public funds. Opposition leader Madhav Nepal raised corruption cases in Parliament but never tried to empower CIAA. Similarly, KP Bhattarai too failed to introduce an effective law to contain corruption cases in the country. Now that Prime Minister Sher Bahadur Deuba is at the helm of  state affairs, it is natural to expect him to empower CIAA and pass the pending corruption  ontrol bill. That Prime Minister Deuba has been surrounded by a bunch of corrupt leaders is a well-known fact. It is indeed unfortunate that such leaders have made it to Deuba’s cabinet.

In order to stamp out corruption, the country does need effective rules and regulations to deal with those who abuse their authority, misuse public funds and flout laws. The opposition parties should also realize that it is high time the country introduced an effective law to contain or minimize the increasing corruption cases. Any wrongdoing by a prime minister, judge, civil servant or any individual in the name of an institution must be subjected to investigation by an independent body. For this the government has to empower CIAA and, at the same time, make the corruption control bill an effective law.

Test of new prime minister

By Bijaya Lal Shrestha

Finally, Girija Prasad Koirala had to leave the field. His repeated entreaties with folded palms for kindness from his foes and friends went unheeded. Now everyone knows that his talks were treacherous and his dialogues, deceitful. His 14-point agenda of national consensus was also nothing more than his ploy to stick to his chair- nothing more than his usual high sounding hollow hopes. The credit for his act of endemic proportions goes, without doubt, to the Nepal Communist Party (UML) and all other opposition political parties. The bold and pro-people decision of the Commission for Investigation of Abuse of Authority (CIAA) on the Lauda Air scandal has contributed to the downfall of Koirala in no less manner. His loyalists and confidants, who had to desert him to engineer his exit, also deserve some appreciation. It appears to have dawned upon them that the country comes before the party and its leaders - a realisation that came too late. The Maoists’ indomitable courage and determination in the face of their confrontation with the Royal Nepal Army also proved no less instrumental. Faced with such daunting pressure from all quarters, Koirala was left with no choice but to resign. Even his threat of seeking foreign interference could not save him.

Thus came Sher Bahadur Deuba on Shravan 7, 2058 BS, defeating his party’s General Secretary Sushil Koirala with a huge margin. But it may be recalled that Deuba’s own track records are not good either. It was during his time that the floor crossing by the legislators was at its apex. It was during that time, people started labelling the legislators as a marketable commodity. It was he who made the biggest ever cabinet just for the continuation of his coalition government with RPP. He was also responsible for allowing the legislators and senior government officials to wallow in Pajeros and other pleasures. In addition, the theft of 500 diplomatic passports from the store of the Ministry of Foreign Affairs must be recalled; the case of the Royal Nepal Army to buy RJ 100 aircraft at an inflated price; the purchase of 91 thousand sub-standard electric meters by the Nepal Electricity Authority, the purchase of two-colour offset press by the Department of Printing and  e Ministry of Information and  ommunications; the financial irregularities in the second phase of the Mahakali Irrigation Project with regard to the composition of Rs 77.3 million to the Korean contractor; the case of the Timber Corporation of Nepal involving the Secretary and General Manager; the smuggling cases of Indian currency which put the CIAA  and the Attorney General at loggerheads and so on. So the new Prime Minister’s responsibilities are many and varied, and the question over Maoists’ insurgency tops the list - a problem which calls for his political acumen, tact and dexterity and above all, seriousness and sincerity for ensuring that it does not develop into an   inferno. Only then can he fulfil his responsibilities. 

We have the knowledge and expertise. If we could prove our worth abroad, why should we fail in our own country. It is because our politics is now wrought with corruption - the root cause that eludes success in all we do. There are many more, but space is limited. However, much water has flown in the rivers of Nepal since then, and it may be presumed that the past irregularities, mistakes and misrules of his and his predecessors will guide him for correction in the days ahead.

This time he is in a much better position with a comfortable majority in the House of Representatives. He has been promised support and efforts by his rivals of his party, including his Chairman and General Secretary. The opposition parties have also assured him of their support and cooperation in his endeavours for national reconstruction. Even the Maoists have sounded positive about reconciliation. The new King has been quite magnanimous in His commitment towards multi-party democracy and constitutional monarchy for bringing the country on to the path of progress and prosperity. Our friends abroad, including our immediate neighbours, also extended assurance of assistance and support in his travails. No other Prime Minister, has received such an overwhelming and astounding support. The new Prime Minister has, therefore, every possibility of his succeeding in his responsibilities for fulfilling the ambition of the people as assured by his own party, time and again. All that is required is his genuine and sincere efforts, his honest commitment and dedication for the people and the country and his will and determination to enforce discipline in the conduct of state affairs of his ministers and comrade-in-arms. This is, in fact, also an opportunity for him to clean his image tarnished in his first tenure as the Prime Minister in 2052, and prove that the second generation leaders are, in fact, not at all inferior.  

Should he fail (and it is possible only if he proves short-sighted and conceited), it will mean that the Nepali Congress is getting decomposed, the way the first generation leaders have become crippled over decades. In such a case, the spirit of sacrifice such as the one shown by the late Ganesh Man Singh in declining the offer of the Prime Ministership will now become something only to be remembered and not to be practised.

So if the Nepali Congress is to be saved from being decomposed, Deuba’s leadership should be able to assure people that his regime is distinctly better than that of Koirala. He should conduct the affairs of state in a way completely different from that of his first tenure. The ‘mere change of guards’ does not mean anything unless  the new Prime Minister can make the people feel that both ‘wine’ and ‘bottle’ are fresh and new this time. And one week’s   development, if any indication, is not disappointing.

Strictly between us

By Beena Kharel

This is strictly between you and me. With the air thick with malaise and the newly cobbled up cabinet reeking with "past" corruption, some people cannot help cracking jokes to get a brief respite. I am presenting here three separate incidents which all happen to relate with Nepali Congress stalwarts. But again, please be warned. The "incidents" might just be a fact or a fiction, or something of both.

Let us start with a light appetite raiser. For this, one needs to recall Speaker Taranath Ranabhat’s (in)famous press conference in the aftermath of royal tragedy. It will be very unfair to single out just one of the hilarious events of the conference, for it was dotted with plenty. But a particular one deserves special attention as it involves an interesting query by a foreign journalist.

To recall, Ranabhat first spoke in Nepali to brief the press on the highlights of the report prepared by the committee, probing into the June 1 tragedy at Narayanhity Royal Palace. He then went on to read the English translation of the report. Just then a foreign journalist turned to a reporter by his side and asked: "I guess he was talking to the press in Nepali earlier. But now, which language is he speaking in?"! Such was the impact of his maiden venture to impress the foreign media.

The next item circulating in the rumour mill involves all three former/incumbent NC prime ministers. Once a foreign donor promised 100 million US dollars for development projects in Nepal. But the cash was not easy to come by. Sher Bahadur Deuba, Krishna Prasad Bhattarai and GP Koirala were called for an interview. They were all asked to pledge "honestly" as to how they would utilise the money. Their reply was to be vetted by a lie-detector which would buzz whenever it sensed a "lie".

When the donor put the question to Deuba, the latter replied: " I will construct motorable roads in my home district Dadeldhura". As soon as he finished saying this, the lie-detector sent an alarm. Deuba apparantly failed.

Next, it was our jocular former Prime Minister Krishna Prasad Bhattarai. When the same question was put before him, he took a little time before answering. Not that he was pondering over the question. In fact, it was his paan that silenced him for a while. After making a wholesome chew, he answered at last, ‘‘Well......I think, I will ensure 24 hour water supply in the whole of Kathmandu Valley.’’ No sooner had his sentence completed than the lie-detector buzzed furiously. Bhattarai, too, failed.

Finally, NC President Girija Prasad Koirala stepped into the scene. He too was put under the same test with the same question. In a seemingly dignified manner, he cleared his throat and said:" I... I think." Before he could clearly pronounce the word THINK, the lie-detector  screamed ominously. Such was his rapport   with lie-detectors!

That was only a routine meal. The dessert is yet to follow. And the caterer is no other than Deuba who is so hooked on the word "blessings", these days. Whether it is at times of triumph or defeat, he unfailingly uses the word "blessings". And untiringly, he  lends the credit to his "mentors"— Bhattarai and Koirala. 

One hack, who keeps track of his onrush of "blessings", chipped in with a comment on Deuba’s old habit. When his wife bore him a son some years ago, the PM was flooded with congratulatory messages. Wishing to be both modest and grateful, an immensely happy Deuba purred, " It is all because of your blessings."

Imagine how Mrs Debua might have come down on him that day, if she were within earshot!

Issues on Nepal-India trade talks

By Bhaskar Sharma

Nepal and India have a preferential trading regime wherein the concessions extended are deeper compared to those extended within the South Asian Preferential Trading Arrangement (SAPTA) framework. The preferential trading system between the two countries falls under the aegis of the Nepal-India Trade Treaties, the latest one being that of 1996, which comes for automatic renewal this December. Despite all positive outcomes of the Treaty, which have greatly helped Nepal in accelerating its industrialization policy, various issues have evolved, which needs serious thinking from both sides.

The Indian and Nepalese officials are scheduled to hold a three-day secretarial level meeting from August 1-3. The meet is an annual event held to sort out the problems hindering the effective implementation of the 1996 Treaty. However, the meet should be taken as a forum to discuss all pressing issues that have affected the bilateral trade between the two countries.

One of the important issues involves surge. The 1996 treaty allows "talking appropriate measures" in case the duty free market access facility provided by the Treaty leads to a surge in Nepalese exports to India. This clause has come up as one of the major issues of concern for both Nepalese and Indian bureaucrats and businessmen. India is irritated because the Nepalese exports are rising, and Nepal is vexed because its export base is small.

Only the export of 10 items, out of the total 250 items for which the Nepalese government issued the Certificate of Origin, has risen. Putting them under the surge net and taking measures to control their exports to India would only dampen Nepal’s industrialization and widen the perennial trade deficit in India’s favour. Both the governments must seriously consider this clause on surge. First, because the Treaty fails to define what surge really is. Second, the surge clause leaves rooms to question the implementation of the Treaty in its true spirit.

Another noteworthy issue is on the demand of the Indian businessmen to clamp anti-dumping duties on Zinc Oxide and Acrylic yarn manufactured in Nepal. Contrary to claims of Indian businessmen, it may be argued that both Zinc Oxide and Acrylic yarn are not dumped in India simply because of two reasons. First, these products are exported after value addition on imported raw materials, which Nepal procures after paying in convertible currency. Second, the total volume of export to India, as compared to the total Indian demand, is negligible.

Another issue of concern for the Nepalese exporters is the imposition of countervailing duty (CVD) on Nepalese fast-moving-consumer products in India after the latest Indian budget, which is being presently done on the Maximum Retail Price revoking the former system of charging it on the transacting price (import price for India). Although the duty is paid by the Indian customers, the change of base for the CVD, has eroded the competitive margin for Nepalese exporters.

India must understand that Nepal cannot afford to compete with India on an equal footing. The reasons are aplenty - high costs of production and backward freighting of products. And certainly, under the present scenario, the spirit of the Nepal-India Trade Treaty will be dampened again. The three day meet must seriously look into this matter.

Another issue that the meet must address is the one on "quality." Nepalese exporters are facing problems in convincing Indian customs officials on the quality of exported products. While the Indian ISI mark is recognized in Nepal, Nepal’s NS mark is not recognized in India. The proposed agreement on the issue between the two countries, which is yet to be materialized, must be tabled during the talks.

Furthermore, another issue that has hampered Nepalese exports is the quarantine squabble. Indian customs officials have been imposing quarantine checks on Nepalese agro-exports. So far, the checks are carried out only in Panitanki (adjoining Kakarvitta) although exportable agro-items are available across the country. There is a need for more check points along the border. Moreover, the problem could be easily settled if the Indian customs officials give due recognition to the phyto-sanitary certificate issued by the Nepalese government. Some agreement on this should be reached during the meet.

The Railways Agreement should also feature on the agenda of the Nepalese officials for the talks. Although the construction of the Birgunj Inland Container Depot (ICD) was completed last February, it has not become operational due to the delay in the signing of Railways Agreement. Once operational, the transit cost for carrying out foreign trade is estimated to go down by as high as 40 per cent. Birgunj would have direct rail links with Calcutta and Haldia.

Whatsoever, it is not just Nepal which is facing the heat in the Nepal-India bilateral trade. Even India has some problems, which the three day meet must attempt to address. First, is the one on security. Reportedly, India and Nepal are going to sign an agreement guaranteeing security of Indian investment in Nepal. The agreement may put Nepal under pressure, but it will certainly raise the confidence of investors especially in the context of increasing attacks against business establishments.

Also, India has been crying foul over the unauthorized cross border trade. However, this is a matter of concern to even the Nepalese side. The deployment of the army at the major customs points is a testimony to the government’s commitment to curbing unauthorized trade. The Indian concern should be duly recognized and talks on this issue should also be held.

It has to be borne in mind that the Nepal-India Trade Treaty has benefited both the countries. If exports from Nepal to India have increased, the import of Indian goods to Nepal too has witnessed a good growth. And the trade balance too is in favor of India. The talks should be held in an environment that calls for mutual understanding and dispute settlement. If India is the big brother, it should act like one. And Nepal should also take into account India’s problems.