Two including Chataut abscond
CIAA prosecutes 10, spares PM

By Damakant Jayshi

KATHMANDU, May 25 - The Commission for the Investigation of Abuse of Authority (CIAA) today filed cases in the Patan Appellate Court against 10 people, including a former minister and two Lauda Air executives, charging them with corruption in the controversial Lauda Air jet lease deal signed by Royal Nepal Airlines Corporation (RNAC) last year.

Six of the accused, who were produced in the court today, were taken into custody by police and are now lodged at the Hanumandhoka Police Station, the district police headquarters. The hearings are to continue on Monday. Those taken into custody are former RNAC Executive Chairman Hari Bhakta Shrestha and the Board members Tirthalal Shrestha, Gaurinath Sharma, Siddharaj Joshi and RNAC executives U P Upadhyaya (Director of Finance) and Pushkar Wagle (Corporate Department).

Ex-Minister for Civil Aviation Tarani Dutt Chataut, who was in government when the deal was signed, was also charged in the case today. But Chataut failed to show up at the CIAA as ordered him this morning, prompting the commissioners to brand him "absconding." The CIAA has ordered the police to arrest Chataut. Also absconding is R R Upadhyaya, the then director of marketing of RNAC. Chataut could not be reached despite several attempts.

Two Lauda Air executives Andrea Molineri and Omar Lenz, respectively of Lauda Air Italy and Austria, have also been charged in the cases.

In court papers filed today, the CIAA contends that the decision to lease the Lauda Air jet was arrived at with malafide intentions. The lease has led to a direct loss to the national carrier of over Rs 389 million, the CIAA contends. Except the three RNAC executives - the two Upadhyayas and Wagle - other seven would have to compensate the loss, said the Commission.

Meanwhile, in another far-reaching move, the CIAA strongly rebuked Prime Minister Girija Prasad Koirala for the Cabinet’s role in the deal. However, the constitutional anti-corruption body spared the Prime Minister the embarrassment of having to face a court case.

At a press briefing later in the day, CIAA commissioners said they had forwarded a letter to the Prime Minister rebuking his answers to the "closed questions" submitted earlier by the CIAA.

In a strongly-worded statement made available to the reporters, the anti-corruption body said it could not agree with the PM’s reply that stressed on the sanctity and secrecy of the Cabinet decisions. It also refused to agree with the PM’s reply that the Cabinet’s approval of the foreign exchange amounting to 2,010,000 US dollars was a "policy decision", saying it was a decision taken for a business dealing.

The CIAA added that the Cabinet decision neither seemed pre-planned nor applicable to any other deal and so the Commission could initiate action against the Cabinet approval.

Regarding the PM’s reply on oath of secrecy was concerned, the CIAA contended that this provision could not be used to deny answers to the Commission. The Commission said that under clause 19 (9) of the CIAA Act, no person holding public post could avail exemption from answering on a case that was being investigated by the CIAA, adding that even government officials take such oaths. "If this contention holds true, then what is the efficacy of the Commission?" asked the CIAA.

The Commission also took exception to the PM reply that the Cabinet could not be seen to be involved with RNAC’s decisions as it was an autonomous body. The anti-corruption body emphasized that the government was clearly involved in the activities of the RNAC because of its approval of the Civil Aviation Ministry decision to bring the Lauda jet and its directives to the ministry to follow the CIAA directives on leasing an aircraft. The Commission’s directives have barred leasing of aircraft outside the tender process. The RNAC had leased the Lauda jet through direct negotiations.

The "dual policy" of the Cabinet vis-à-vis the foreign exchange approval to the two lease deals (the other relating to the China South West Airlines) was also questioned by the CIAA. The Commission remarked that it could not understand the Cabinet’s compulsion to clear the amount only for the Lauda jet. It further said that the Prime Minister provided no clear answers.

The CIAA has also decided to "caution" the PM to take precaution in approving foreign exchange deals "that could facilitate corruption" as seen in the present case. Sources in the CIAA said that the commission would send all of these observations to PM Koirala.

Two of the Commissioners, Basudev Lamichhane (who investigated the case) and Madhav Datt Bhatta, seemed to hold divergent views on the PM’s alleged involvement in the infamous jet lease deal. Speaking about cautioning PM Koirala, Bhatta maintained that PM was not involved in the deal, whereas Lamichhane said, "It was for you to interpret (the caution)." He was replying to a question whether the CIAA’s caution meant that the PM was involved in the deal.

Meanwhile, in an emergency meeting held at his official residence at Baluwatar with his ministers and party leaders, PM Koirala said he would not resign despite the CIAA’s comments on his reply, according to sources close to the PM.

Court takes statements from two RNAC board members

By Pramod Poudel

KATHMANDU, May 25 - Of the six accused in controversial Lauda Air deal presented at the Patan Appellate Court, only the RNAC’s board members Tirtha Lal Shrestha and Siddha Raj Joshi could furnish their statements before the division bench of Judges Buddhikant Mainali and Bhoop Dhoj Adhikari today.

Statements from other accused will be taken on Monday. After making the statements, all of them were taken into custody and lodged at Hanuman Dhoka Police Station. Besides Shrestha and Joshi, the other accused former RNAC chief Hari Bhakta Shrestha, Board member Gauri Nath Sharma, RNAC’s Finance Department’s Upendra Prasad Upadhyaya and its Corporate Department’s Pushkar Wagle were also present at the court to furnish their statements.

The other accused ex-Minister for Culture, Tourism and Civil Aviation Tarani Dutt Chataut and Marketing Director R R Upadhyaya remained absconding. The other charge-sheeted includes two Lauda Air executives Andrea Molineri and Otmar Lenz.

CIAA has asked seven of the accused (excluding the three RNAC officials) to pay a fine of Rs 389,706,731 (net loss incurred by RNAC over the Lauda jet deal) collectively.

Board member Shrestha giving his statement said that the agreement regarding the Lauda jet was not against RNAC’s interest. "The Lauda deal will not cause RNAC to suffer loss nor will it prefatory body else except the corporation," said Shrestha. "The deal was not clinched with any malafide intentions," he added.

Speaking about the current loss suffered by RNAC, Shrestha said that profit or loss could be estimated only after 18 months (time for which Lauda Air was leased).

Giving further statement to the court he said that the board endorsed the agreement as concerned authorities from all the 13 RNAC departments had pointed out that the lease deal would earn a monthly profit of around Rs 30 million.

"I have been detained unnecessarily," said Shrestha.

"Even Rameshwor Prasad Khanal as RNAC’s board member, was involved in the course of the Lauda Air negotiation and on what ground is he not charge-sheeted?" queried Shrestha.

Joshi speaking about the negotiation of the jet said that it was the legal advisor who had opined that the jet could be leased through direct negotiations. "We were also provided with the legal opinions and that the Lauda Air agreement was above board."

Joshi said that CIAA’s investigation was being carried out on the basis of an appeal filed by an unidentified person. He condemned the CIAA’s move to charge-sheet them by yielding to the Opposition parties’ street protest against the Lauda Air deal.

"No normal Nepali can afford post a bail amounting to Rs 50 million. CIAA’s verdict can in no way be justified," he said. "CIAA’s eyes don’t fall upon those people who become billionaire overnight but on us who work from nine to five keeping the government machinery working," he added.

" RNAC is an autonomous body but the Public Accounts Committee and CIAA summoning the members of RNAC management time and again is an act that cannot be justified," Joshi said. This show that concerned bodies tend favours the political parties’ wills and weakening governments’ machinery, Joshi added. "Who is going to decide on such subjects," he further added.

NOC to hike LPG price

By Prem Khanal

KATHMANDU, May 25 - A whopping increase of almost 34 per cent in the purchasing price of Liquefied Petroleum Gas (LPG) has once again heightened the possibility of LPG price rise in the domestic market.

Madan Raj Sharma, Executive Director of Nepal Oil Corporation (NOC), informed that the latest quotation of Indian Oil Corporation (IOC), the sole supplier of LPG to NOC, has swelled remarkably touching US$ 375 per ton whereas such price during the last hike announcement was US$ 280 per ton.

Along with increment in the prices of all petro-products, the government last October had hiked the price of LPG by almost 19 per cent to touch Rs 550 from Rs 465.

With the latest increment in the price of LPG in the international market, the net loss to NOC in the LPG transaction has also escalated. "The net loss cylinder in the LGP has jumped to Rs 165 against Rs 102 set at last petro price hike announcement," Sharma told The Kathmandu Post.

He further informed that since NOC currently imports 3,700 tons of LPG a month, the accumulated annual loss for LPG transaction alone will surge to Rs 500 million, if immediate remedial steps are not taken. He also hinted that NOC has started preliminary homework to review the current LPG price. "We have initiated preliminary homework to review the price of LPG, but it is too early to make any further comments, " Sharma said

NOC’s inability to fix the price of LPG has even affected the operation of auto gas stations - the first ever LPG refueling station of Nepal. "The stations are almost ready for operations, even the LPG for the purpose has not yet been delivered. But NOC’s inability to fix LPG’s selling price has lingered their trial operation," he said.

"At the moment, we are in deep dilemma on fixing the selling price of LPG from the station, " Sharma said and added, "no LPG-powered vehicles will come to the stations if we fix the price above the selling price of cooking LPG cylinder and they will continue to use cooking LPG cylinder as the fuel. Similarly, if the price of auto gas is fixed below the price of cooking gas, then the public opinion may turn against it for allowing the use of subsided LPG for commercial purpose," he pointed out.

He also said that NOC has requested the Ministry of Industry, Commerce and Supplies to recommend possible solutions and expressed the confidence that the problem would be sorted out within a couple of days.

When asked about the progress on the proposed construction of its own LPG bottling plant, Sharma informed that a technical team is soon leaving for Bangalore, Indian to study about the construction of spherical-shaped storage tank and then after the construction work will start in the land purchased by NOC near Janakpur.

In view of the frequent disturbances in the regular supply of LPG, NOC, some four months ago, had decided to construct a gas storage depot in Nepal and start its own distribution channels at the estimated cost of Rs 300-400 million.

Oli against bailing out tainted party member

By Utpal Raj Misra

KATHMANDU, May 25 - As the main opposition party CPN-UML is trying its best to bail out its "tainted" senior member and former Minister for Culture, Tourism and Civil Aviation Bhim Bahadur Rawal, one of the most influential CPN-UML leader KP Sharma Oli, today in a significant remark, said that he did not agree with the decision of his party.

Speaking to The Kathmandu Post, Oli said that he saw no reason for the party to be shocked by the parliamentary Public Accounts Committee decision implicating Rawal on corruption charges while leasing a Chinese jet for RNAC, the national flag carrier.

"If any irregularity was done by Rawal then he did it at his own as a minister without the knowledge or approval of the party," Oli said. "Now when he is implicated for his own deeds I can’t understand why the party has to be so protective as to form a committee to investigate the matter and try to defend him."

"As a member of the Central Working Committee of the party I stand by the decision made by the committee but personally I am totally against the whole thing," he added.

Rawal had submitted his resignation to the party leadership yesterday after being implicated by the PAC of irregularities, challenging PAC’s decision and claiming that he was clean. UML then formed a three-member committee comprising of former finance minister Bharat Mohan Adhikary and party leaders Yubraj Gyawali and Keshab Badal in order to investigate the points Rawal had raised in his letter of resignation.

When asked what the UML and other supporting left parties would now do as the Commission for the Investigation of Abuse of Authority (CIAA) had filed corruption cases against 10 high-level former government officials for their role in the Lauda Air scandal leaving aside Prime Minister Girija Prasad Koirala, thus technically giving him a clean chit, Oli said that the left alliance saw it differently.

"We feel that, by mentioning that irregularities occurred in the decision made by the Cabinet, CIAA has tried to make the Prime Minister aware that it feels he too is involved," Oli said. "It is a signal to the Prime Minister to resign. And, until that happens we will stick to our protest programs," he added.

Meanwhile the alliance of six left parties who have been taking to the streets demanding resignation of the Prime Minister, in a meeting today decided that CIAA’s decision had made Koirala’s resignation "more necessary."

Appealing to all to support their 72 hours bandh call from May 27-29 the left parties also warned the government that if the police interfered and tried to disrupt their "peaceful protest program", the consequences would not be very palatable.

Issuing a press release, the alliance of six left parties declared that all transports, factories, business houses, educational institutions and offices would remain closed for the three consecutive days of bandh.

However, the release also stated that pharmacies, ambulance, hospital vehicles, fire brigade, press vehicles, police and army vehicles would not be stopped from plying during the bandh period.

SC quashes writ on Lauda lease

Post Report

KATHMANDU, May 25 - The Supreme Court today quashed a writ petition on a controversial Lauda Air jet lease saying that the petitioners’ argument regarding irregularities could not be judged from the writ’s jurisdiction.

The verdict was passed by a division bench comprising of Justices Hari Prasad Sharma and Harishchandra Prasad Upadhyaya.

The verdict stated that the writ jurisdiction cannot analyse corruption regarding Royal Nepal Airlines Corporation leasing the Lauda jet plane. It said that corruption could be justified only through investigation.

The Court in its verdict also spoke that right to information applies only against the state and RNAC as an autonomous body need not require to furnish information to the petitioner.

The petition was filed by Advocates Gopal Sivakoti Chintan and Rajaram Dhakal on November 17 last year while Senior Advocate Ganesh Raj Sharma and Advocates Balram KC, Shambu Thapa, Sushil Pant and Radheshyam Adhikari had argued from the respondents side.

Concerns over HR violations

Post Report

KATHMANDU, May 25 -Two different human rights organisations, issuing press statements, have expressed concern over several incidents of human rights violations in the recent days in the country.

A press note issued by the National Human Rights Commission, states that several cases of violence and abductions have caught the attention of the Commission.

The note under signed by the secretary of the Commission Jogendra Keshari Ghimire further adds, "The Human Rights Commission believes on people’s right to live and that no violence should take place for any reason."

The Commission also appeals to the government and all the other bodies to be sensitive about the Maoist and Human Rights related issues and also appeals to the Maoists to be more responsible toward general people’s right to live.

Similarly, Nepal Human Rights Organisation, in a press release, has said that it wants to draw public attention on various incidents of violation of Human Rights.

The release says that the organisation has received several appeals to make free the policemen abducted by the Maoists during Rukumkot and other similar incidents.

The organisation also appeals to the Maoists that Mukti Prasad Sharma of Pyuthan who was abducted by the Maoists be released as soon as possible.

"We also demand that the government make public the statements about the Maoists in accordance with the principle of Human Rights," the release adds.

New records on Everest

Post Report

KATHMANDU, May 25 - Erik Weihenmeyer scaled Mt. Everest on Friday becoming the first blind climber to summit the world’s highest mountain.

According to the Ministry of Culture, Tourism and Civil Aviation, Weinhenmeyer reached the summit at 10 a.m. with Eric Alexander, 31, Luis Benitez, 28, and Jeff Evans, 31, his climbing partners from the United States.

Minutes before they reached the summit, Chris Morris, 33, and Bradford Bull, 33, and his father Sherman Bull, 64, also reached the summit with eight Nepalese Sherpa guides.

Sherman Bull, climber and physician from Connecticut, reached the summit becoming the oldest climber to step on the roof of the world.

Not only did he become the oldest man but also set another record becoming the first father-son to climb Everest together.

All these climbers were part of the National Federation of Blind Allegro Everest Expedition.

Weihenmeyer, 32, from Golden, Colo., had lost his sights due to retinoscheses at age 13 when he was still in high school. At age 16, he took up rock climbing and ever since then there has been no stopping him.

Unlike most climbers who depend on coordinating carefully between their eyes, hand and feet to make their climb, he follows the sounds of bell that will be tied to the jackets of his climbing mates and Sherpa guides.

He has already climbed 6,150 meters high Mount McKinley in Alaska, 6,900 meters high Mount Aconcagua in Argentina, and 5,860 meters high Mount Kilimanjaro in Africa.

Bull breaks the record for the oldest Everest climber first set by Georgian climber Lev Sarkisov, who reached the summit on May 12, 1999, at the age of 61 and again by Toshio Yamamoto the next year at the age of 63 years and 311 days.

The number of people who have reached the summit since Tuesday from the Nepali side has reached 94 and there are more reports of success on the northern side in Tibet.

Secret to worm infestations is in our genes: report

By Ishwori Neupane

JIRI, Dolakha, May 25 - For the first time ever, American researchers have proved that susceptibility to worm infestations can be handed down to generations through genetic codes.

A study carried out under Helminth Project in Jiri, about 188 km east of Kathmandu, for the last six years have been able to establish that susceptibility to worm infestations are also embedded in genes, specifically in the chromosome no. 1 and 23 of the human cell. There are 23 pairs of chromosomes in a human cell nucleus.

The US-based South West Foundation for Bio-medical Research Laboratory in Texas had been carrying out the research among the ethnic Jirel community to find out if there is any "genetic susceptibility to infectious diseases or not."

Presenting the outcome of the research in a discussion programme organised by Srijansil Samaj Bikas Pratisthan here on Thursday, Dr. Devraj Rai, a project official, revealed that worm infestation of humans has a connection with the genes.

"As genetic characters of the progenitor are transmitted to their descendants, the susceptibility to worm infestations are also transmitted from one generation to the next," Dr Rai said.

Rai said, "The task of the research is to find out the position of the DNA (Dioxyribo Nuclic Acid) that carries the message for infectious diseases and to develop a DNA vaccine able to prevent genetically induced infectious diseases." DNAs are genetic material that transmit characteristics from one generation to next.

The research study established the fact that the worm infestations detected among the Jirel community was induced genetically rather than by outside environment condition like contaminated food, water or poor living surroundings.

During the course of research, a person’s faecal matter was collected for four consecutive days and sent to the Texas-based genetic laboratory for further investigations. The investigation revealed that more than 70 per cent of the people examined suffered from various types of worm infestations.

A total of 2,718 people, including 206 under three-year old children, were examined during the research period, said project chief Rabin Singh. During the research, statistics on body fat, body hydro status and the physical growth of the children were also collected, said Singh.

The Helminth Project was established jointly by the Texas-based laboratory, Miami University and TU Teaching Hospital in 1995, with a view to finding out the cure for gene-related worm infestations. The US-based National Institute of Health funded the research project, which is affiliated with Nepal’s Health Investigation Council.

Two American researchers, Dr. Sarah William Blangeros and Dr. John William Blangero, and one Nepali counterpart, Dr Janardan Subedi are involved in the research. In 1985, Sarah and John received their Doctorate on Genetic Epidemiology based on the research conducted in Jiri.

Sarah said that they were enthused to start the research project among the Jirel community to establish the "genetic impact on infectious diseases" and its possible cure on the advice of Dr. Subedi and Dor Bahadur Bista, a renowned anthropologist and former chief of Central Department of Sociology and Anthropology, Tribhuvan University.

Monsoon to hit Nepal by June 5-7

Post Report

KATHMANDU, May 25 – The official monsoon season in Nepal is slated to begin from June 5-7, 3-4 days earlier than normal, the government’s Meteorology and Forecasting Division announced here Friday.

.A press statement issued by the Division today, however, also said that the pre-monsoon activity over the region has already brought considerably increased amount of rainfall over various parts of the Kingdom than is usual for the month of May.

The Division said that, over the last 25 days when pre-monsoon activity began, Kathmandu has got 36 per cent more rainfall than is usual for the month of May. Similarly, Dhankuta and Birendra Nagar recorded 55 per cent and 117 per cent increase over the average monthly rainfall respectively.

When compared to the latest weather charts and satellite pictures over the Bay of Bengal, Arabian Sea and adjacent areas lying at its south-eastern parts, this year’s pre-monsoon activity has been unusually active and the monsoon would be started three to four days earlier, the Division said.