PM Koirala refuses to quit
Struggle in NC intensifies

Post Report

KATHMANDU, May 6 – For the first time in the current crisis triggered by the latest developments in the Lauda Air scandal, Prime Minister Girija Prasad Koirala has publicly refused to step down from office.

"I will not resign," Koirala categorically stated to journalists during a tea break in an economic programme in the capital on Sunday. Koirala’s comments came one day after his bitter party rival, ex-PM Krishna Prasad Bhattarai publicly asked Koirala to step down "for his deep involvement in the Lauda deal".

Referring to Bhattarai’s call, Koirala on Sunday said: "His (Bhattarai’s) job is to ask my resignation; mine is to refuse the same."

When asked to comment on CIAA’s "sealed questionnaire" sent to him, Koirala replied that he has already done his job. "What they will do next, go and ask them."

The Prime Minister has come under intense pressure to quit since the CIAA last week ordered him to furnish replies about his role in the Lauda Air jet lease deal signed last year by Royal Nepal Airlines Corporation. The controversy is taking a heated turn within the governing Nepali Congress after Bhattarai’s uncharacteristically strong statement yesterday.

Some of the party leaders seem to have taken veteran leader Bhattarai’s comments "very seriously". The internal conflict of the ruling Nepali Congress (NC) is set to intensify after Bhattarai’s statement, according to party leaders from both the prominent factions in the party.

"Bhattaraiji’s statement is indeed different in tone and style compared to his previous statements," said influential party leader Narhari Acharya, who is known as moderate in the party. "A senior leader like him who wields so much influence in the party should never have uttered such a statement outside the party forum."

Another leader, speaking on condition of anonymity, added that Bhattarai could have asked for Congress parliamentary party or the working committee meeting to raise such statements at this time. "Such statements will not only adversely affect the PM and the party’s image but will also have an adverse impact on Bhattarai himself."

The leader further said that even the anti-Koirala camp which is eyeing power will not be helped in their cause. "Bhattarai’s statement has ominous portents even for the anti-Koirala camp in the party. It smacks of extreme line and bitterness."

Another minister of state close to PM Koirala said that the PM’s supporters were closely watching the move of the opposite camp. "We have nothing to worry as we are in a majority. However, if they try to reduce our numbers, we will definitely make counter-moves." He added that there was no threat to the government.

Bourse pounds upon Radisson Hotel

By Bijay Ghimere

KATHMANDU, May 6 – The Nepal Stock Exchange (Nepse) has refused to list the shares of Oriental Hotels Ltd., managed by Radisson International, accusing it of disseminating false financial information to the general public during share issue last August.

Nepse officials said, the action was taken after the company failed to provide small investors adequate and proper financial information as promised during the share issue.

"The stock market refused to list the Hotel’s shares because after it collected money it failed to provide proper information to investors," said Sambhu Pant, an official with the Nepse.

This is the fist time that Nepse has refused to list the shares of any company on grounds of alleged non-compliance with information disclosure regulations. Nepse has further accused the Hotel of presenting two varying financial statements to the general public – the first during the share issue last August, and the other to Nepse almost two and half months later when it applied for share listing.

The immediate impact of the Nepse action will be felt by small investors – over 32,012 of them - who bought shares of the Hotel. Without Nepse listing, the shares cannot be bought and sold. Both Securities Board Act and Nepse Act are silent on what happens to investors if a company’s shares remain unlisted.

The profits, excluding depreciation and interest payment, in the two statements (the second was audited) for the last fiscal year differed by 37.50 per cent, reveals a copy of a letter dated February 15 sent by Nepse to the Hotel which laid out the reasons why it was refusing to list its shares.

However, the Hotel refutes that it gave wrong impression of the financial position to attract subscriptions. "The cause of difference in the profits is due to a slump in tourist arrivals. Everyone knows that. In fact, our Hotel is doing better than others that came into operation at around the same time," claimed B K Shrestha, General Manager of the Hotel.

Despite Shrestha’s claims, the letter reveals that profit shown by the second statement for the first nine and half months was lower by 20 per cent as shown by the first. The Hotel had claimed at the time of issue that the statement prepared for the first nine and half months was final and that it remained only to be audited. The Hotel is yet to give a satisfactory explanation to the profit difference, said Nepse officials.

Furthermore, the Securities Board, the regulatory body overseeing the stock market, has asked the Hotel to make its audited accounts public and to explain the cause of difference in the estimated and audited profits to its shareholders. The Hotel has so far failed to issue the notice.

Shrestha said that the information regarding financial position would certainly be disseminated through a medium of mass communication after the Hotel’s shares are listed. However, Pant questioned, "Why wait for the listing to inform the common shareholders of the Hotel’s performance?"

Chairman of the Securities Board, Damber Dhungel also said that the Hotel must issue a notice of public interest before pressing Nepse to get its shares listed.

Not only the projections of the Hotel for the last year were wrong, the performance of the Hotel this year also differed widely from what the first statement had projected. The letter reveals that the Hotel lost Rs 37.9 million within the first six months of the current fiscal year alone, against estimations that put the net profits for the whole year at Rs 29.8 million.

Oriental Hotels Ltd., managed by Radisson International, had invited applications for 125 million equity shares of par value Rs 100 on July 25, last year. The shares then had been oversubscribed by 7 times. The issue was later increased to Rs 150 million. Oriental Hotels Ltd has an authorized capital of Rs 500 million, issued capital of Rs 750 million and total paid up capital of 475 million rupees.

ANNFSU(R) likely to call off school closure

Post Report

KATHMANDU, May 6 - President of the All Nepal National Free Students’ Union (Revolutionary) Devendra Parajuli today said that they would probably withdraw their call of closing down of all private schools from May 14 after a Nepali Congress leader expressed the willingness to meet their demands.

After Nepali Congress leader Arjun Narsingh KC expressed his view that the government could agree to 11 of the 15-points demand of ANNFSU (Revolutionary), Parajuli said that they would drawback their call even if the government commits to meet their demand within a specified period.

"However we won’t be satisfied if the government just says that they would form a committee to look into the matter. What we want from the government is its commitment that all our demands would be considered seriously and spell out by when they would be fulfilled," said Parajuli.

Parajuli was speaking at a public debate on "Why Bandhs should be the solution for the problem of education sector" organised by IHRICON, a human rights organisation.

ANNFSU (Revolutionary) had warned to close down all private schools if their 15 points demand is not met. "This is our endeavor to solve the present crisis in the education sector," said Parajuli.

The demand includes that children of political leaders, government officials and heads of other Constitutional organs should compulsorily be admitted to public schools. The demands also include that fee of private schools be reduced by 50 percent and that the private school fee structure be determined.

It was these two demands, most raised their objections during the programme.

However Parajuli stressed that the root of the problems lies with these so called elites not ready to send their child to the public schools. "They are worried only about their child and not about Janata’s (people) child," said Parajuli.

"What we are concerned about is that there must be minimal gap in the quality between that of public and private school’s education. If the children of these elites are sent to public schools then it would help in ensuring the quality of public schools as well," said Parajuli. "If this happens then only government would optimally invest in public schools through which we can be secured of good return even from the neglected public schools," he added.

Parajuli however said that their such effort was not meant to discourage the private sector.

Parajuli said that government’s attention is drawn only after private schools are attacked as their children are sent there. "Closing down of public schools will not catch the attention of the government," said Parajuli.

A legacy PM Koirala could have done without

By Suman Pradhan

KATHMANDU, May 6 – The flurry of activity by Prime Minister Girija Prasad Koirala over the weekend seemed to be loaded with the presumption that if you continue to bury your head in the ground – a la Ostrich - chances are the crisis surrounding the government will just blow away.

That it is not so simple in the real world being borne out everyday as someone or the other is calling for the 78-year old Prime Minister to quit for his alleged role in the infamous Lauda Air scandal.

The political crisis spawned by Royal Nepal Airline’s hasty aircraft leasing agreement, if anything, is getting deeper and is striking at the heart of the legitimacy of the Koirala government, more so after the constitutional anti-corruption body, CIAA, ordered the Prime Minister last week to furnish replies about his role in the infamous deal.

While the political situation remains fluid on the surface, the Prime Minister seemingly has been trying to portray an image of authority, someone who is in control of events despite all the hullabaloo surrounding him.

It was as part of this game plan that on Saturday, even as party stalwarts continued the call for his ouster, the Prime Minister spent hours finessing the ambitious Integrated Security and Development Package (ISDP). The ISDP, he hopes, will revive the government’s fortunes in the Maoist-affected districts and along with it, his own political career.

But will this studied ignorance of the Lauda Air controversy as well as the renewed burst of energy in getting the ISDP off the ground resurrect a government whose leader, to all intents and purposes, seems to have lost the moral mandate to govern, at least according to his detractors?

Political analysts say, Koirala’s refusal to step down coupled with his decision to go ballistic against the CIAA – to which he has already replied in strong legalistic terms – is tantamount to a grave political miscalculation. "He squandered away plenty of political capital by just refusing to step aside," says Krishna Hachhethu, a political analyst with the Centre for Nepal and Asian Studies. "If he continues with this rigidity, it will not only taint him but also his party."

There are little signs that the Prime Minister is worried about this, at least in public. A week after the latest crisis kicked in, he has yet to make a public statement about the crisis. None of his political colleagues, except for those who survive on his patronage, have defended him in public either.

Part of the reason is that the Prime Minister has not been found guilty by the CIAA. Indeed, he has not even been indicted for any wrong-doing. In purely legalistic terms, Koirala is still innocent, until proven guilty.

But analysts point out that the Prime Minister’s position should not be judged on purely legalistic terms. More than anything else, the highest seat of government is a political position with profound moral authority. This is precisely why many here are surprised at Koirala’s reply to the CIAA, a reply that conjures of images of artful Clintonesque legalese used by former US President Bill Clinton to wiggle out of the Monica Lewinsky scandal.

"I did not expect such a legalistic reply from Koirala," says Hachhethu of CNAS. "This is the first time he is speaking in legal terms in his long political career. All the other times, he has been either a politician or a leader. But in his reply to the CIAA, he was purely a lawyer. The seat of the Prime Minister is much much more than just law. It is an immensely political position with great moral responsibilities, and he has failed to address any of those issues."

Those views are borne out on the streets of Kathmandu where almost everyone, from shopkeepers to vegetable sellers, seem to think that Koirala should have quit by now for his own good. Their voice is an indication of the sort of political legacy that will live on long after Koirala is gone, whenever that happens.

In that sense it is ironic, for this most legacy-minded of politicians, who even held off his retirement to put a suitable successor in place (so that the legacy thing can be taken care of) will be remembered not for his many achievements, but for Lauda Air.

Software export still a dream

By Ram Sharan Sedhai

KATHMANDU, May 6 - Though the Information Technology (IT) Policy 2000 aims at exporting software worth Rs 10 billion within the next five years, there is a little hope of achieving the target, given the present scenario of software production.

Software developers and producers say lack of cyber law, skilled manpower and dearth of publicity that Nepal can produce software, have hit hard to the lately emerging software business. Though some Nepalese companies are exporting software to Japan, Germany, the Netherlands, France, Greece, UK, USA, Canada, Denmark and other countries, the total volume of business is very meagre.

The total software development and production sold at the local and international market is hardly worth over Rs 150 million per annum. Though there are some 15 software developing companies, only five or six are export-oriented and the rest cater to the limited demand of the local market.

Lack of necessary laws has not only discouraged the emerging business with huge potential, but also incurred a considerable amount of revenue loss. This has also shut the door to opportunity, as foreign investors are reluctant to invest in Nepal. Allen Bailochan Tuladhar, CEO of Unlimited, a software company, says, "Lack of policy implementing agency and skilled manpower, besides retention of existing one, are the major stumbling block in software development and production".

Though his company is exporting software worth about Rs 30 million annually to UK, Germany and US and sees potential of joint venture software production, Tuladhar says present political situation has eroded investors’ confidence.

Sanjiv Raj Bhandari, CEO of Mercantile Communications System adds lack of provision for opening letter of credit (LC) for software export, accepting credit card and online payment has caused a problem in tax clearance. It has also impeded the growth of the business and has forced one foreign company to withdraw and another one is about to leave, he says.

Besides, lack of copyright has shrunk the expansion of those companies so they mainly focus on developing tailored software and there is hardly any company producing brand, says Suresh Regmi, Director of Professional Computer System.

However, Bikal Acharya, sales Manager of World Distribution Nepal Pvt. Ltd, sees a very high potential and the problem of manpower is also slowly easing. The company exports software worth Rs 20 - 30 million per year.

Balaram Pandey of Mandala Software Pvt. Ltd, say that the government should provide tax holiday to software companies and give incentives to lure foreign investment. He also suggests companies to enhance their competence.

Yet some software developers say that they are competing with international companies and are doing good business but they are facing problem in producing export certification to Nepal Rastra Bank as foreign buyers are reluctant to issue it.

Rajesh Kumar Shakya, CEO of CSE Software, says though low cost, sincerity and quality products draws foreign clients, cultural barrier like long holiday and frequent bandhs (general strikes), power and telephone interruption delay the delivery of products. And the growing insecurity has further discouraged foreign investors and customers alike.

No big companies can survive depending on the local market alone as there is lack of awareness among the local buyers and the market is very small, he adds.

They are currently developing and producing personnel, financial, school and hospital management software, accounting and banking software, software for airlines, hotels, police, power companies, information system, medical colleges and others.

Besides, they also develop and produce software catering specific needs of the local and foreign customers. It is estimated that the entire software companies employ above 400 skilled and semi-skilled manpower besides support staffers.

Public vehicles avail huge benefits for providing concessions

Post Report

KATHMANDU, May 6 - The transport entrepreneurs are on their way of receiving bonanza of subsidies from the government in return for the concession they have started providing for the students but in ratio much larger than the 33 per cent that they are doling out.

According to Sarad Upreti, the chairman of the Federation of Nepalese Transportation Entrepreneurs (FNTE) the Ministry of Labour and Transport Management has already agreed to provide 75 per cent subsidy in vehicle tax, income tax and road permit as a compensation for providing the students with 33 per cent discount on all forms of public transportation.

In addition to the mentioned subsidies the transport entrepreneurs are also to get industrial subsidy following which they can import lubricants and fuel by themselves. If this happens then the monopoly of the state owned Nepal Oil Corporation regarding the import of petroleum products is going to be broken. Till now Nepal Oil Corporation (NOC) has the sole right to import petroleum and lubricants in the country. In recent days there has had been a lot of question raised over the purity of the petroleum products imported by NOC. The transporters have been saying that the adulterated petroleum product imported by the NOC is the main cause for air pollution in the capital.

"If we are allowed to import fuel by ourselves then we will save up to Rs 5 per litre and in that case we have promised that we will decrease our tariffs," says Upreti.

"The main reason why the NOC is not able to supply with pure and cheap oil is because the corporation is marred by corruption and over staffing. But we don’t have these problems," he added.

However the proposal for financial subsidies submitted by a commission formed to look into the matter comprising of the transporters as well as government officials is yet to be given a nod by the Ministry of Finance although the Ministry of Labour and Transport Management has already okayed it.

By now all the public vehicles have started giving 33 per cent discount on all fares to students of against their ID’s The transporters representing different transportation organisations have also agreed on following a common norm set by the government and have decided not to go for unnecessary competition.

According to Upreti, the different transport associations have agreed that they will only import vehicles according to the needs.

Even though the other problems surrounding public transportation have been solved one issue haunting all the transporters still remains - the banning of over 20 year old public vehicles.

"Even as the Transportation Minister has agreed to work a way out regarding this issue the Environment Minister has not given much attention to the problem," complains Upreti. "We have decided to go to the Prime Minister with this issue very soon as the deadline is nearing day by day," he said.

The decision made by the Ministry for Population and Environment last year has set November 16 as the deadline for banning all public vehicles more than 20 years old.

Hom Prasad Adhikary, the general secretary of the Federation of National Nepalese Transportation Entrepreneurs (FNNTE) is also keen on resolving the matter soon.

"We have decided that all the transport association will get together and press the government on making a more favourable decision regarding banning of more than 20 year old vehicles," Adhikary said.

Adhikary also said that a press conference will be called by the transport associations regarding this issue in a few days time.

CPN-ML condemns army mobilization

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KATHMANDU, May 6 - A meeting of CPN-ML Politburo concluded here Sunday with the party leaders condemning the government’s recent decision to mobilize the Royal Nepal Army in the insurgency-affected hill districts, saying that the move would only serve to push the nation towards civil war.

While lauding the Supreme Court’s recent opinion on the controversial citizenship bill submitted to King Birendra, the Politburo meeting also decided to stick to its demand for Prime Minister Girija Prasad Koirala’s resignation, said a press release signed by CPN-ML General Secretary Bam Dev Gautam.

The meeting has passed a resolution outlining solutions to the problems facing the nation.

"The government is intent of quelling the Maoist insurgency by mobilizing the police, armed police and the army at a time when pressure is building up from all quarters for the resolution of the problem," the resolution says, according to the release. "This is wrong and the move will push the nation towards civil war."

The resolution also suggests PM Koirala to step down to facilitate national consensus among all the political forces for the resolution of the Maoist problem, while flaying the ruling Nepali Congress (NC) party for passing the controversial Citizenship Bill. "The recent opinion of the Supreme Court against the Bill has proved that the NC lawmakers decision was wrong," the released added.

The breakaway faction that faced a humiliating rout in the 1999 May general elections, and does not have a single seat in the House of Representatives, was instrumental in protesting against the controversial Bill. Nationalist political forces like ML fear that the passage of the Bill will pave the way for granting of Nepali citizenship to non-Nepalis such as the Bhutanese refugees and Indian and Tibetan migrants.

Rang Rung is still at distant

Post Report

DAMAULI, May 6 - Even after 18 years, the Rang Rung Drinking Water scheme which aimed at providing drinking water to almost 13 thousands people is yet to be complete.

Construction Entrepreneurs Association has been accusing that because of the financial irregularities and commissions, the scheme is yet to be complete.

Talking on the issue, District engineer, Buddhi Prasad Gautam, said that the scheme has not been able to forge ahead because National Planning Commission ordered the evaluation of the scheme. "The evaluation has been the impeding factor," said Gautam.

Vice chairman of Construction Entrepreneurs Association, Krishna Ghimire said that while buying pipes there is heavy commission and this is the reason for the slow progress of the scheme. He accuses the technicians for not working properly. "If the technicians work properly then the scheme will be complete on time," said Ghimire. Ghimire worked in the same scheme 10 years back.

Construction Entrepreneurs Association has accused that there was nepotism while awarding the contract.

Nepal tells cadres to be ready for fresh protest

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KATHMANDU, May 6 – Leader of the main opposition CPN-UML Madhav Kumar Nepal has called on his party cadres to remain prepared for fresh round of protest programs to press for Prime Minister Girija Prasad Koirala’s resignation.

"We will continue with our street demonstrations until the Prime Minister steps down," Koirala told his partymen at a Bagmati-zone-level party meet at the party’s headquarters at Balkhu Sunday. "And after his resignation comes, dialogues will begin at a new level to resolve the problems faced by the nation."

He added, "The country is in dire need of leaders with high moral character. But Koirala, instead of upholding the reputation of the prime ministerial chair by resigning, is sticking to the chair and damaging the very image of the constitutional watchdog body."

Nepal’s such comments come as a major setback to the general public of the Capital and elsewhere, who have already seen months of economically unproductive street demonstrations demanding Koirala’s resignation. The demonstrations followed regular disruption of the parliamentary proceedings.

The opposition parties have also warned to disrupt the upcoming 20th session of the parliament, during which the government plans to present its annual budget and programs and policies.

Commission for Investigation of Abuse of Authority (CIAA), the constitutional anti-corruption body, last week sent a sealed letter with a set of questions demanding Koirala’s clarifications regarding a recent leasing of a wide-bodied jet from Austria’s Lauda Air by the national flag carrier. However, Koirala has warned to legally challenge the CIAA’s move to question the Cabinet’s decision.

2 Nepali women held in B'desh cocaine bust

DHAKA, May 6 (AFP) - Two Nepali women were detained Sunday by airport authorities here for allegedly trying to smuggle nine kilograms (about 20 pounds) of cocaine, 1217police and airport officials said.

"The cocaine was recovered from them in 23 packets as they crossed customs for a flight to Bangkok," said an official at the country’s main Zia International Airport.

He said the two women, identified as Sunita and Bindu (eds: one names), both in their early 20s, would be handed over to police.

They entered Bangladesh by road several days ago.

Police confirmed the incident, but declined to provide further details.

Lumbini dev masterplan still remains a mystery

By Madhav Dhungana

LUMBINI, May 6 - As every year, the birth anniversary of Lord Buddha is being celebrated with fanfare all over the Buddhism world this week. On Monday, various programs are being organized across the length and breadth of Nepal to mark the 2,545th Buddha Jayanti.

But things are not that cosy here in Lumbini, the birth place of Siddhartha Gautama. Although various Buddhist monasteries constructed in the area have worn colorful paints, the Lumbini area as such does not have much to boast about. Snail-paced efforts have marred the development of Lumbini.

Let alone newer projects or innovative ideas to promote and popularize Buddha’s birthplace, even the much-talked-about master-plan to develop the birthplace of Lord Buddha, which was prepared by Japan’s Professor Kenzo Tange way back in 1978 is not showing any signs of taking off.

The master-plan invasions ways and methods to conserve the religious, cultural and ecological atmosphere of the birthplace of Lumbini.

Lumbini Development Trust (LDT), the authority set up in the early 1980s to develop the World Heritage Zone, is not pretty sure about the future of the master-plan.

The master plan devised the area into three: The northern area will have a Lumbini Village with 200 residential blocks for LDT staff, office, drinking water, electricity, school, police station and others. Middle section is allocated for construction of temples, representing the traditional architecture of different Buddhist counties. The southern section is the sacred garden, the birthplace, which needs extra care for the conservation and also to display the ancient artifacts with archaeological and religious significance.

"In the last 22 years, the development of Lumbini according to the master-plan has not taken the speed it should," said LDT member-secretary Janak Lal Shrestha. He blames lack of concrete thinking and plan to develop the sacred area.

The government has acquired 1150 bigha of land with a huge plan to develop the area into sacred garden, research center, museum, temples of different countries, auditorium hall, guest houses, meditation cells, ponds and many more. The international religious organizations have been doing their works, constructing temples, in the area but the part of the constructions should be done by Nepali government is not satisfactory, said the locals.

When Prof. Tange handed over the master-plan to the Nepali government, he estimated a budget of US$ 6.5 million, that was equivalent to Rs 740 million but as the Nepali rupees continuously devaluating against the US dollars, now, the planners estimate, it would cost around Rs. 5 billion.

Similarly, in other ancient areas of the region, related with the life of Lord Buddha, Devdaha, Ramgram etc has barely got anything more than fences and a few guards to protect the area rich with pre-historic objects in the ground. The responsibility to observe these areas also fall upon LDT.

Shrestha said that the trust has not even decided which part of the master plan need primary attention in last two decades. "Our main problem has been how to provide national and international donation and how to utilize them," he said.

Lumbini has collected Rs. 122 million as donation from both national as well as foreign donors in the name of promoting Lumbini as a centre of Buddhism and religious tourism. But, the LDT staff calculate that the amount of international donation in the name of Lumbini development is decreasing.

"And this master-plan so ambitious that it is impossible to implement if we do not have foreign aid," Shreshta said.