Nepal, China move towards Yuan convertibility

By Prem Khanal

KATHMANDU, Oct 4 - The central banks of Nepal and China have begun mutual consultations to simplify existing currency exchange regime between the Nepali and Chinese currencies.

The measure is likely to culminate the Yuan, the Chinese currency convertible in the Nepali market, providing a greatly needed boost to bilateral trade and tourism prospects.

"If everything goes as planned, the Chinese Yuan along with other 19 foreign currencies would enter Nepal Rastra Bank’s (NRB) foreign exchange list probably by the end of this year," says official at NRB. The commercial banks here would accept Yuan after it gets enlisted in the NRB foreign currency list.

Such a scheme is expected to boost the tourism industry here, especially after an agreement between the two countries to list Nepal on China’s "outbound destination" is signed. The agreement, which would make Nepal one of the officially-sanctioned destinations for Chinese tourists, is due to be concluded next month.

Tourism entrepreneurs here worry that such a tourism scheme would fail if there is no convertibility of the Yuan in the Nepalese market. However they are hopeful of the current ongoing consultations.

"We have been demanding such arrangement for quite a time now," says Pradeep Raj Pandey, Chief Executive Officer of Nepal Tourism Board. "The proposed arrangement would definitely encourage the Chinese tourists to visit Nepal once the domestic commercial bank starts accepting their currency".

According to the latest data, more than 10 million Chinese visit other countries annually.

"Expected convertibility of the Chinese Yuan cannot be achieved without the Chinese authorities taking some measures," says NRB official. "To expedite the process, NRB has recently sent a proposal to the Bank of China outlining the needed measures before making the Yuan a convertible currency in the Nepali forex market".

A senior NRB official said the Central Bank has requested the Chinese authorities to lift the ban on the outflow and inflow of Yuan. The Chinese currency regulation prevents the outflow and inflow of Yuan. After such ban is lifted, Nepali banks would be able to buy and stock Yuan by paying other convertible currency.

Such a system would also enable Nepali businessmen to take Yuan to China from Nepal, much as businessmen buy Indian currency here to take to India though the latter too has such currency controls. At present, businessmen have to buy Yuan inside China itself to do business.

"The Chinese government should allow use of its currency in the trade transaction before including the Yuan as the acceptable foreign currency for the Nepali banking system," says an official of NRB.

The lack of convertibility between the Chinese currency and domestic currency here has been a major obstacle for the full-fledged trade between Nepal and China, especially with the Tibetan Autonomous Region. As the Nepali banking system doesn’t accept Yuan, the Nepali traders here (those exporting to Tibet) are compelled to import various Chinese goods equivalent to the value of their exports - a sort of barter system - to sell here and recoup their investments.

"The exiting business system is very lengthy and risky and takes months to recoup our investment, let alone making a profit," says Nil Kantha Chaulaghai, Vice president of Trans Himalayan Trade Association.

Another measure proposed by NRB to Chinese authorities is to allow Nepali businessmen to enjoy various discounts while purchasing goods inside China in Yuan. Businessmen currently enjoy some tax concessions in China but only because they have to pay in US dollars or other international convertible currencies. "In the absent of such privileges, the Nepalese businessmen wouldn’t be attracted towards using the Yuan," Chaulaghai stressed.

NRB officials say that the proposed exchange regime would be helpful in promoting export from Nepal as that would cut down on the barter system. Similarly, the Yuan accumulated in Nepal can be used to finance the imports from Tibet. "The use of Yuan collected in Nepal is not a problem particularly, because of huge existing trade deficit with Tibet," stresses the NRB official.

Bilateral trade volume between Nepal and China stands a little over Rs 11 billion, a large part of the trade favouring China.

Donors set up Trust for Peace

By Tilak Pokharel

KATHMANDU, Oct 4 –A group of European donor countries under the lead of the United Nations Development Programme (UNDP) have jointly set up a trust aiming at reducing violence and promoting peace and development in Nepal, said ambassador of Norway to Nepal.

Talking exclusively to The Kathmandu Post, Norwegian Ambassador, Ingrid Ofstad, said, "A group of almost eight European donors including the Norwegian government, British government and Swiss government, under the lead of the UNDP, has set up a trust titled Trust for Peace and Development."

"It is a response from us (donors) for the peaceful solution and reconciliation of the problem plaguing the country," said Ofstad. "We aim at non-violent efforts of Nepal’s own people for the peaceful solution of the problem. The basic idea is to establish peace."

The donors reached an agreement to set up the Trust during mid-September, after the terror attacks in the United States.

Though the exact amount of the fund put in the trust is yet to come to the public, the Trust has already called for proposals from local non-governmental organisations and stakeholders. "Nepal’s own people will be involved in the project implementation and will work in the grassroots level," she said.

Beneficiaries of the initiatives are those affected by the current instability (by the Maoist insurgency), particularly disadvantaged groups, women and youth and ultimately the general public, reads the proposal.

Ofstad also said the Trust aims at the rehabilitation of the youths who have gone underground during the Maoist movement.

However, the proposal also says the Trust basically aims at creating awareness and advocating in the society to work for the peace and order.

Experts hail co-operative school concept

By Kiran Chapagain

KATHMANDU, Oct 4 - Maoist-aligned students union’s recent demand to develop private schools into "co-operatives" is a good education policy as it forces these schools to be service-oriented, say education experts.

However, they have doubts on the proper implementation of the policy as most of the boarding schools are run like a private business.

"The concept of co-operative school is very good since it is guided by service motive," says Mana Prasad Wagle, a renowned education expert.

The Maoist-aligned students’ group, All Nepal National Independent Students Union- Revolutionary (ANNISU-R), on Tuesday, had publicly announced their decision of redirecting their energies from attacking private boarding schools to developing them as "co-operatives."

The students had changed their earlier stance during their 15th national convention that concluded recently in Biratnagar. Even as the government pursued peace talks with the mother party, the Communist Party of Nepal (Maoists), the students have repeatedly gone on a rampage, burning schools and buses and even attacking children, parents and school officials.

According to Wagle who also is a member of government-commissioned High-Level Working Committee on Education, 2001, every institution, under co-operative policy, is required to run by a group of people, who will have the authority to make policy including fixing fees and other charges. Education institutions are also required to spend 85 per cent of the total profit they make in the institutions, he added.

The report, which was submitted to the government by the high-level committee in July, has also recommended to institutionalise the private and boarding schools. "Even the concept of co-operatives is the road towards the institutionalisation of the schools. The report has also echoed this concept," said Wagle.

Many parents are raising voice against the alleged misuse of fees collected from the students by many private schools in different titles. In this regard, Wagle said, under the co-operative policy, the institutions are required to spend charges in the same topic they collect from students. "The policy of co-operative schools can serve make education a non-profit making service, instead of present lucrative business," Wagle added.

Even the Maoist student leaders say they want to make the "education business" a service-oriented one. "Under our modality of co-operative schools, there will be a group of people from community who will have final say over making policy and fixing fees of the institution," said Purna Poudel, General Secretary of ANNISU (R).

"Our proposed model of co-operatives will end present system of one-man-ownership on schools and instead, the local community will run them," said Poudel.

Experts even say the concept of co-operatives can be achieved by the Education Act, 2001 (Seventh Amendment), which was tabled in the ongoing 20th session of the Parliament on Monday.

"The new Education Act will automatically end individual ownership over private boarding schools as it proposes a requirement to register them under Company Act," says Tirtha Khaniya, another education expert.

Under the new Bill, schools will not be free to decide fees as they like, says Khaniya. However, a body of representatives from the District Education Office, teachers, guardians and local people will fix the school fees.

However, Khaniya raised doubts about the government adopting the students’ strategy and implementing it. "We are not in a position to implement the idea of developing boarding schools into co-operatives as we do not have such law," said Khaniya. But, he said it could be implemented for the upcoming new schools.

Experts further say that the new Bill, if passed from the parliament and implemented strictly in practice, will serve the demand of the Maoist students’.

"The policy of co-operatives in the field of education would obviously benefit the consumers," says Harendra Bahadur Shrestha, president of Consumers’ Forum. "The policy is the best way to guide the business-minded education sector towards the service-oriented."

Overloaded planes raise question about safety

Post Report

KATHMANDU, Oct 4 – Royal Nepal Airlines flights from Nepalgunj to the remote hill districts in the west have been operating without any safety measures.

The flights in these routes are overloaded most of the times raising serious question on the safety of these flights. And the pilots too have been forced to fly overloaded aircraft due to unethical nexus between the RNAC staff stationed at Nepalgunj and businessmen, an RNAC source said.

Lured by monetary gain from businessmen, RA staff in Nepalgunj dump excess commercial weight into passenger aircraft risking the lives of passengers, the source said. "These goods are not even mentioned in the load manifesto."

RNAC flight from Nepalgunj to Bajura on September 2 was overloaded with commercial goods, weighing an excess of 305 kilograms above the normal weight, an official at the Civil Aviation Authority said on condition of anonymity.

Soon after landing at Bajura airport, Captain Rabindra Rokaya who was in command of the 9N-ABT Twin Otter got suspicious and requested the Civil Aviation Authority in Bajura to weigh the goods again. "The aircraft was found overloaded by 305 kilograms, which was not even mentioned in the load manifesto," the official said about RNAC’s negligence.

The goods were again weighed in the presence of RNAC officials, the commanding pilot, civil aviation authorities, businessmen and security personnel. "And the aircraft was carrying 305 kilograms above the limit," said Mohan Jung Shahi, manager at Bajura airport.

A written statement has been forwarded to all the concerned authorities to take action but to no avail, Shahi added. Similarly an error was also found in the passengers manifesto which listed 7 of the passengers as female out of 17 people on board, although all the passengers in the flight were male. "This tactics is to confuse the pilots and overload the additional goods as female weigh less than the male," another official said.

DV lottery lures many middle-men into money-making

By Seema A Adhikari

KATHMANDU, Oct 4 – Like elsewhere in Asia, thousands of people in Nepal too are eyeing United States of America (USA) or the "land of opportunities", where they want to migrate, work or study and earn enough money to sustain their and their children’s lives. And the 2003 Diversity Immigrant Visa Programme or DV-2003 in short, is raising their hopes.

And it’s not just the ordinary people or the students who are applying for the visa. Also attracted are the professionals and technical experts, who say they are "frustrated" with the state of affairs in the country. "I want to migrate to the land of opportunities and this DV-2003 programme has raised hopes," says Agriculture Engineer, Ravi Rasaili, of Kusanti, Lalitpur, who wants to migrate to the US to "enhance" his career.

To apply for the DV-2003, thousands of people aspiring to become US citizens are crowding the offices of various agents’ mainly in the capital city these days. Meanwhile, complains are widespread that such agents are charging hefty sums of money from the commoners aspiring to become US citizens.

Sita Ram Poudel, 20, who at the post office the other day, all set to send his DV-2003 to the US."I don’t understand why these agents are charging such hefty amounts despite the simplicity of the process," he said. "I made it myself and just paid Rs 30 for the stamp only."

Bhairab Thapa, a local from Kanchan Madi village said he paid Rs 2,000 to one of the agents for the entire process of the DV-2003 lottery. "But later on I realized that I was cheated," he said.

However, it has been explicitly stated by the US Consular Affairs that this is absolutely free service. Since everybody’s dreamland is USA, people out here are making it a business to process DV-2003 lottery.

When asked about the service charged by the agents, Robert C. Kerr, Director, American Center Public Affairs Officer at the U.S. Embassy said, "We are not aware of such agents or private organizations for the processing of DV-2003 lottery, it is very simple and is posted outside the American Center and American Embassy too".

Ever since the visa program started, thousands of people from all walks of life - college students to bureaucrats and professionals who meet the minimum requirements set by the US government – have been rushing to the post offices or to the so-called agents to get the visa forms and try their lucks.

Dreams of migrating to USA are long cherished by many. Nepalis are no exception, as the US plans to grant 50,000 DV- 2003 to aspiring migrants from around the world. Every year US government issues 50,000 visas.

Though there is no fixed format or form for the entry, the US consular requires information regarding full name, date of birth, country and place of birth, spouse details, full mailing address, photo size - 2"x2" and signature in both native and roman letters. Any information missing will automatically disqualify the candidate, and in no case should an applicant send the entry more than once.

Besides this, the US Consulate prescribes a specific size of envelope, the length of the envelope should be of 6-10 inches and 3.5-4.5 wide. The full mailing address should be at the top left corner of the envelope.

Entries for the DV-2003 lottery must reach at one of the Kentucky Consular Centers by October 31, 2001. Entries received before or after the date or on other Consular Centre will be disqualified regardless of when they are postmarked.

As the deadline is approaching for the DV-2003, newspapers and magazines are covered by the advertisements of those agents proceeding for DV-2003 lottery. The range of service charges starts from Rs 100 and goes as high as 2,000.

According to US Embassy, DV- 2003 lottery has started since 1990, and 729 Nepalis were awarded with the visa last year.

When asked about effects of this recent attack on US over DV-2003, Kerr informed that the consulate is not aware of disqualifying any specific country or postponing the DV program. "The people who were chosen from DV lottery have great contribution towards USA so it should not be cancelled," he added.

For DV- 2003, Canada, China (mainland-born), Columbia, Dominican Republic, El Salvador, Haiti, India, Jamaica, Mexico, Pakistan, Philippines, South Korea and United Kingdom are not eligible to apply because they have sent a total of more than 50,000 to the US in the previous five years.

MPs demand action on fake certificates

Post Report

KATHMANDU, Oct 4 – Lawmakers today demanded that the people in the administration responsible for recruiting teachers with fake certificates be held liable and action taken against them.

"This has created a terror in the education sector. First there should be an investigation into who are responsible for hiring these teachers and under whose administration," said Narayan Man Bijuchche of the Nepal Workers’ and Peasants Party.

The demand comes a day after news reports that a new law would require thousands of government school teachers to apply for a licence to teach once the Bill proposing seventh amendment to the Education Act is passed by Parliament.

It is estimated that 30 per cent of the 150,000 teachers of public schools could have been employed on the basis of fake education degree certificates that they obtained from across the border.

The Bill proposes that all the public school teachers face tough licensing exams that is designed to flush out those with fake education degrees.

There have been numerous cases where teachers have been caught working without proper education training and degrees. Many of them were found having bought fake certificates from colleges and universities in neighbouring Indian states.

The new mechanism would not only flush out the teachers with fake certificates but also the incompetent and unqualified people who are now currently teaching in schools across the nation.

"If there had been a mechanism to train and monitor the education sector these types of problems would have never come up in the first place," Bijuchche said.

Speaking during the Special Hour, Prem Bahadur Singh of the main opposition CPN-UML claimed that there was a conspiracy being hatched up against the parliament and the parliamentarians.

His reference was directed towards the tussle between the judiciary and the legislature following the Supreme Court’s ruling last week to scrap the Constituency Development Programme Implementation Procedure.

Through the programme, each lawmaker was getting Rs. 1 million for spending in his or her constituency for development works.

"At a time when there is such conspiracies being built up, the lawmakers should not remain silent observers," he said. "The law bars speaking on a case that is being decided in the court so the judgement is not influenced. However, we have to speak for justice."

Meanwhile, Tarini Dutta Chataut, the former Minister for Tourism and Civil Aviation who was forced out of office for his alleged involvement in the infamous Lauda Air deal, today blasted the Commission for Investigation of Abuse of Authority (CIAA).

"It was political and prejudicial reasons that led the CIAA to file a case against me," said Chataut, who promised the House of Representatives to give details in the next few days.

"I have not taken anything more than the privileges and facilities given within the framework of law," he said.

Chataut was charged with irregularities in the case by CIAA and was forced to resign. A case has been lodged in the court against him. This was the first time since he was named in the case that he has spoken about the subject in the House.

Govt proposes raising judges’ benefits

Post Report

KATHMANDU, Oct 4 - At a time when the legislature and the judiciary are at tussle over a Supreme Court decision, the government is proposing to increase the benefits being received by the judges at all levels.

Though the Auditor General has been pointing out every year that there has been irregularities in the name of hiring orderly by the judges, the government move would legalize the trend.

The Bill, proposing amendments in the Acts related to court management and judiciary management, would allow each of the judges to have one orderly that would end up costing the state coffer over Rs. 10 million annually.

The Bill is also proposing additional security guards who will be part of the proposed justice police division.

In case the judges of the Supreme Court were to retire up to three years before the retiring age of 65, they would still get all the benefits and would be considered to have completed the full term.

The judiciary Council would be given additional power to recommend if the need arises to decrease or add number of courts. Earlier, the Cabinet has the sole power to make the changes.

Donation for quadruplets crosses Rs 100,000

POKHARA, Oct 4 (PR)– Locals and well wishers of the quadruplets who were born to Rupa Thapa-Shrestha here last week are continually extending their love, sympathy and support to the rare newborns and their parents.

The total donation amount extended to the rare neonatals, who are currently kept at the Manipal Medical College hospital, crossed Rs 100,000 by Thursday evening. Among the donors included, Ganesh Bahadur Gurung and his wife Chij Kumari, the parents of triplets, from Pokhara-17, Pardi.

The couple came to the regional office of Kantipur Publications at Prithvichok here and handed over a donation amount of Rs 5,001.

The Western Regional Hospital remained crowded with donors all day Thursday. They were there to extend their love and financial support to the quadruplet brothers and their parents, who hail from neighboring Tanahun district.

Members of Gyanmarga Independent Women group held a banner seeking donations to the quadruplets and their parents and went around the picturesque lake city.

The doctors attending the mother and the quadruplets said that the health condition of the 28-year-old mother, Rupa Thapa-Shrestha and the quadruplets is normal. However, they said that the eldest of the four brothers has developed fever since last night. He has been given antibiotics and kept in the warmer.

Curfew relaxed in Tulsipur, transport strike called off

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GHORAHI (Dang), Oct 4 - The public transport operating from this district that was suspended for the last three days has been resumed from Thursday afternoon after the government officials assured bus entrepreneurs to compensate for the damage to their vehicles.

The local administration relaxed the indefinite curfew in Tulsipur for the next 14 hours. Officials said the indefinite curfew imposed in Tulsipur municipality for the last three days would be lifted keeping in mind the situation.

A mob vandalised around 100 buses in Tulsipur on Monday after a passenger bus hit two students to death.

A meeting of the bus entrepreneurs held here today decided to resume the public transport in view of the fast approaching Dashain and Tihar festivals. The bus entrepreneurs have given an ultimatum of about one and a half months period to the government to compensate for the damage to their vehicles.

Deputy superintendent of police in Tulsipur, Ram Bahadur Basnet, said that situation of the municipality had returned to normal and there was no incidents of fresh violence. DSP Basnet, however, said that curfew would be imposed only on the night time for a few more days.

New-born mortality rate high in Nepal

Post Report

KATHMANDU, Oct 4 - Fifty in every 1,000 new-borns die every year in Nepal, the highest rate in the South Asian region, states a report made public here Thursday.

According to the report on "State of the World’s New-borns" made public by the Save the Children/US (SC/US) amid a function here, Nepal’s new-born mortality rate has not only topped this sub-continent but also has been placed on the fourth place in the world.

The study has assessed the health needs of the world’s new-borns and spotlights on the broad implications of care and neglect. It was earlier released on the eve of the United Nations Special Session on Children in New York City on September 10, 2001. But the session was postponed due to the September 11 terror attacks in the United States.

Speaking at the function organised in the capital, Prime Minister Sher Bahadur Deuba said the government is committed for the well-being of the new-born babies of the country. "The government is serious about the intense mortality rate of the new-borns and the government is concerned about it," he added.

Keith Leslie, Director of Himalayan Field Office of the SC/US, addressing the function, highlighted on the objective of this report, to improve the health care of new-borns and mothers and thereby to significantly reduce new-born mortality.

According to data provided on the occasion, neonatal mortality rate (NMR)over the last 14 years in Nepal has not revealed much decrease (NMR was 45 per 1,000 in 1987). For the great majority of women in Nepal, childbirth occurs at home with the assistance of family members or neighbours (92 per cent of deliveries are home deliveries).

It has been estimated that four million new-borns die each year globally. Ninety-eight per cent of these deaths occur in Asia and Africa.

Expert Dr. Ramesh Kant Adhikari said the study will help to analyse the situation of new-born health in Nepal and recommend future direction. Low birth weight, birth asphyxia, birth injuries, infections, hypothermia and congenital anomalies are the major causes of neonatal mortality, he added.

Patricia Daly, Deputy Director of Saving New Lives (SNL) Secretariat said new-born mortality is one of the world’s most neglected health problems. World-wide, more than eight million babies each year are stillborn or die before reaching the age of one month.

Smugglers shoot former cop

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BIRGUNJ, Oct 4 - A gang of suspected smugglers shot a former head constable of the Nepal Police for tipping off the army about the rackets of smugglers who are active across the Nepal-India open border, police here said Thursday.

The former head constable who sustained serious bullet injuries has been identified as Shesh Alam. Superintendent of Police, Arjun Jung Shahi, said the injured was airlifted to Kathmandu-based Birendra Police Hospital for treatment.

This is the second time that suspected smugglers have shot a person in the busy streets of the frontier city within a week.

According to an eyewitness account, one of the four unidentified people on two motorbikes fired at Alam from point-blank range that pierced through his chest. He was walking along the main road of the city leading toward Raxaul, an Indian border town, when he was fired at this morning.

Pedestrians said the culprits fled the scene on their bikes immediately after Alam fell on the ground. Nobody has been arrested yet in connection with the incident.

This incident comes a week after the RNA and Indian paramilitary forces confiscated a large chunk of illegal goods worth millions of rupees by raiding several hideouts along the frontier areas of both the countries.

Trans-border smuggling and other forms of crimes have been controlled remarkably after the Royal Nepal Army (RNA) was deployed on the major customs points along the Nepal-India border about six months ago.