NRB begins freezing Maoist fund channels

By Prem Khanal

KATHMANDU, Jan 9 - In an attempt to break the Maoist financial network, Nepal Rastra Bank, the central bank of the country, has frozen more than a dozen individual accounts held in various commercial banks. The holders of these accounts are suspected to have Maoist links.

According to a high level source at the central bank, the bank had issued directives in this regard to the commercial banks a week ago as per the information and request of the security agencies. "The individuals’ bank accounts have been frozen due to their suspected links with Maoist terrorist activities," said the source.

However, the source declined to disclose the exact amount that has been frozen, saying that the amount in the accounts have not yet been finalized. "We are currently engaged in a detailed study of the accounts and it will take some time to find the exact figure," added the source.

As per the Commercial Bank Act 1974, commercial banks are compelled to obey any directives issued by the central bank.

This is the first time in the financial history of Nepal that the central bank has directed commercial banks to freeze individual accounts on the grounds of financing terrorist activities.

The sources also informed that the accounts, which mostly contains amounts looted by the Maoist from various branches of the commercial banks, were being used in financing various terrorist activities across the country.

Maoists are believed to have looted more than Rs 500 million in cash and valuables over their six-year-old insurgency period from the various branches of two state-owned commercial banks alone—Nepal Bank Limited and Rastriya Banijya Bank.

The Maoists had looted around Rs 200 million in cash and valuables from the four state-owned banks in Dang and Syangja districts on November 23, 2001. The Maoist had also looted around Rs 20 million from a bank in Solukumbu district on November 24.

Apart from the loot, Maoists have also been accumulating billions of rupees in the form of donations both from home and abroad to finance their activities. They have also been extorting money from individuals and organisations, particularly from the business community, across the country. This was especially so during the four-month-long ceasefire.

Freezing of accounts held by terrorist organisations is now being resorted to increasingly. After the September 11 terror strikes, the US authorities went on to freeze the bank accounts of the alleged perpetrator, Al-Qaida. And just two weeks ago, Pakistan had frozen the bank accounts of Lashkar-e-Toiba and Jaish-e-Mohammad, which India claims to be responsible for the December 13 attack in the Indian Parliament premises.

Abrupt ISDP suspension mars development

By Tilak Pokharel

KATHMANDU, Jan 9 - After the imposition of state of emergency in the country, the government has suspended the Integrated Security and Development Plan (ISDP) in six out of seven districts, said a senior government officer.

"The government has suspended the ISDP in six of the seven Maoist-hit districts except Gorkha," Prithvi Raj Ligal, Vice-Chairman of the National Planning Commission (NPC), told The Kathmandu Post on Tuesday. "Since it is practically difficult to effectively implement the programme due to the imposition of emergency, it has been suspended."

Now that the Royal Nepal Army (RNA) personnel have carried out more offensives against the rebels, it has further hindered the development works, Ligal said.

But Ligal said that the ISDP would be resumed once the state of emergency was lifted.

The government had launched the ambitious programme at the beginning of 2000, with the aim of quelling the almost six years of Maoist insurgency that so far has claimed over 3,000 lives. In the beginning, the programme was implemented in seven far-flung districts—Gorkha, Rolpa, Rukum, Pyuthan, Salyan, Jajarkot and Kalikot—that were hit hard by the insurgency, with Gorkha taken as the "model district".

The government on July last year selected six more districts—Dailekh, Dang, Dolakha, Lamjung, Ramechhap and Surkhet—for the implementation of ISDP. "But due to the emergency period, absolutely no work has been initiated in these districts," said another senior government official, who preferred to remain unnamed.

But work has been running as usual in Gorkha district, the official said.

The RNA was all set to build 13 roads, among a host of other development works, in the seven districts during the present fiscal year (2001/2002). Out of the 13, the army now is building five roads in Gorkha alone, but now the work in the remaining six districts has been suspended.

The government is also continuing its consultations with various foreign donor agencies for their support in ISDP implementation, Vice-Chairman Ligal said.

Three weeks ago, Prime Minister Sher Bahadur Deuba had held a meeting with foreign diplomats to discuss their interest in assisting the implementation of ISDP. "All the diplomats were positive on the matter," he said.

Two months ago, a visiting US Government team, including an army officer, had visited some sites in Gorkha district to see the progress on ISDP. At that time, they had shown positive signs in helping the government.

The major donors interested in assisting in the ISDP implementation include United Nations Development Programme (UNDP), World Bank, Asian Development Bank, US Embassy, British Embassy, German Embassy, Japanese Embassy, Norwegian Embassy and the Canadian Co-operation Office.

Nepal to host CIRDAP meet

Post Report

KATHMANDU, Jan 9 -Nepal is going to host the governing and executive council meeting of Center on Integrated Rural Development for Asia and Pacific (CIRDAP) from January 14 to 18.

"The thirteenth minister-level governing council meeting of the CIRDAP will be held in Kathmandu," said a circular provided at a press conference here today. The conference was organised by the Ministry for Local Development (MLD). Nepal will preside over the meeting.

Ministers from the member countries of the CIRDAP will take part in the meeting, said the Secretary at the MLD, Udaya Raj Swoti. Along with the "governing" meeting, the 22nd secretary-level executive meeting of the CIRDAP will also take place. Secretaries of the member countries will attend the meeting.

CIRDAP, the Asia Pacific grouping of the thirteen countries for poverty alleviation through rural development, comprises Nepal, India, Pakistan, Bangladesh and Sri Lanka from South Asia.

The governing meeting of the CIRDAP takes place every two years and its secretary level executive meeting occurs each year.

The CIRDAP has been working on the gender equality, sustainable livelihood, agriculture development and rural infrastructure in Asia and the Pacific. In Nepal it has been supporting agriculture and co-operatives in some districts, according to the Secretary.

Test operation begins on Kali Gandaki A

Post Report

KATHMANDU, Jan 9 - The much-awaited hydroelectric plant is finally coming online. Minister of Water Resources, Bijaya Kumar Gachchhedar, together with the technicians of Nepal Electricity Authority (NEA) on Wednesday closed down the dam at Mirmi, Syangja, for initiating the "wet test" process of the Kaligandaki-A hydel project.

As the ‘break-through’ process of "headdress" tunnel of the 144 megawatts (MW) hydel project, the country’s biggest so far, has been completed, the "wet test" is going to start from January 10, said a statement issued by the NEA, the state-owned power utility which developed the project.

In the beginning, NEA plans to carry out the test on one of the four turbines of the hydroelectric plant, which has four turbines with the capacity to generate 48 megawatts of electricity each.

A 100 metres’ long and 43 metres’ wide diversion dam has been constructed at Mirmi of Syangja district, and the water of Kaligandaki river has been diverted towards a place called Beltari through a six-kilometre-long tunnel where the three turbines are placed.

The Asian Development Bank (ADB) and the Official Development Assistance of the government of Japan funded the project. It was supposed to be completed by the end of last year, but now after an agreement the project will be completed by February 21, 2001.

According to the NEA, 98 per cent of construction works on the project has been completed. After the project is complete, 840,000,000 units of electricity will be produced, which will be transferred to the National Power Grid through a yet-to-be-completed substation in Lekhnath Municipality of Kaski district.

The power supplied will also be connected with a 66 km-long single circuit transmission line in Pokhara and a 132 KV 40 km-long double circuit transmission line in Butwal.

Italy’s Impreglio company is overseeing the project’s civil works, while a Japanese company and another German company are looking after the electro-mechanical works.

While the government has spent US $ 32.8 and NEA US $ 100 million for Kali Gandaki A, US $ 450 million have been received as loan from the ADB and US $ 160 million from the Japanese government’s ODA. The project, along with the 70 MW Middle Marsyangdi hydel project, aims to meet power demands that will arise after three years.

‘Govt will call off emergency soon’

Post Report

KATHMANDU, Jan 9 - Minister of State for Home Affairs, Devendra Raj Kandel, said Wednesday that the government is planning to call off the state of emergency as early as possible, even before the said period of three months. He also said the government is showing "considerable willingness" to resolve the Maoist insurgency.

Speaking at a programme organised by the Human Rights and Peace Society (HURPES), which today inaugurated its country-wide awareness programme at the capital, Minister Kandel said, "The government is not interested in prolonging the state of emergency…we can call it off even before the scheduled three months."

Minister Kandel also took the opportunity to commend the security forces on the successful conclusion of the eleventh SAARC Summit.

He also informed that Gajendra Karna, a student who was arrested by the security personnel on charges of carrying Maoist journals and papers in Chitwan district, was released a few days back.

On the occasion, DIG Rabi Raj Thapa of the Armed Police Force dismissed the allegation made by human rights activists that his force was handing over the injured and arrested rebels to the army. He also said that as long as the Maoists did not lay down arms, the security forces would continue to hunt them down to the finish.

Lieutenant Colonel of RNA, Niranjan Prasad Aryal, said that the Nepalese army is well-trained and well-disciplined to carry out such operations. He also cited the RNA’s peacekeeping experience from over 20 countries, and said that the army men know the UN Peacekeeping Code.

"The RNA has been deployed as per the 2046 Constitution, Clause 118, and will carry out its operation according to the Constitution," said the Colonel. he also said that the armed forces was fully aware of not violating human rights during the operations.

Journalists and human rights activists at the function flayed the government for curtailing the freedom of the press, and for taking upon itself the role of disseminating information about the operation while refraining independent pressmen from reporting on the spot.

Highlighting the international humanitarian law and Geneva Conventions, Tamara Al Rifai of International Committee of Red Cross Society, said that all wars had ethics and rules which ought to be respected by both the parties at war.

"Differences have to be spelled out between combatant and non-combatant," she said, adding," when a wounded combatant is lying on the ground, he can be taken prisoner, which is perfectly legal but not killed."

Hiranya Lal Shrestha of CPN-UML said the way out in the current crisis lies in a political solution and resumption of dialogue.

"There was no need to deploy the army since this is an internal problem, and not a secessionist movement or external aggression," he said.

He also said that there is a lack of transparency in the security forces’ operation and there have been extra-judicial killings. He said that 60 CPN-UML workers have so far been arrested during the operation.

Powell may visit Nepal next week

Post Report

KATHMANDU, Jan 9 - US Secretary of State Colin Powell is to visit India, Pakistan, Japan and possibly other locations including Nepal next week on a wide-ranging Asian tour to focus on the anti-terror war, Afghan reconstruction and easing tensions on the subcontinent, an agency report said Wednesday quoting the State Department.

The Agence France Presse, filed from Washington added, "Powell is to depart on Tuesday, going first to South Asia before heading to Tokyo on January 21 to attend an international donors conference where funds for the reconstruction of Afghanistan are to be pledged."

Will a power grid bring Bangladesh, Bhutan, India and Nepal together?

By Surendra Phuyal

KATHMANDU, Jan 9 - The founding member of SAARC His Late Majesty King Birendra had called for regional co-operation in harnessing Nepal or the region’s abundant water resources way back in 1985. And much progress seems to have been made in the 16 years since the regional forum came into existence.

The formation of South Asia Growth Quadrilateral (SAGQ) between Bangladesh, Bhutan, India and Nepal in 1997 with a view to promoting sub-regional co-operation in the field of energy and trade, among others, is considered as a watershed in the direction.

Spurred on by the development, the sub-region is now discussing the possibility of having a common power grid. Theoretically, the grid would interconnect the integrated power systems of the four countries that are rich in such energy resources as hydropower and natural gas.

And, although the just-concluded 11th SAARC Summit did not specifically take up the issue of regional or sub-regional co-operation in the energy sector, experts and officials here are hopeful that such a co-operation would be forthcoming. In fact, they go on to assert that much headway has already been made towards boosting power exchange and trade in and among the SAGQ countries.

"That regular meetings between the officials (power and energy sector) of the four countries are on shows that things are moving ahead very much positively," said Bishnu Bahadur Thapa, the Joint Secretary at the Ministry of Water Resources. "That might result in the sub-region having a common power grid—sometimes referred to as SAARC grid—soon."

Furthermore, officials also say that the keen interest of the Americans in getting the region’s vast energy potential harnessed has been working as a push-push factor. The American government through USAID started a unique South Asia Regional Initiative (SARI) in January 2001.

And it is working. Officials say SARI has been instrumental in not only conducting the pre-feasibility study for setting up a power grid interconnecting the national grids of the four countries but also in bringing together experts and officials from the region. In all, SARI conducted nine workshop training programmes last year and more are in the pipeline, according to USAID officials.

The Kathmandu Declaration issued at the end of the 11th Summit of the seven-nation grouping is silent on the issue of regional or sub-regional co-operation in energy sector. The Declaration talks about devising a mechanism for co-operation in the area of water resources, while stating that "the heads of state or government reaffirmed the validity of the idea of encouraging the development of specific projects relevant to the individual needs of three or more Member States under the provision of the SAARC Charter".

But officials are all hopes. "The Declaration may not have specifically addressed the issue of regional co-operation in energy sector, but the concept of co-operation between the four countries under SAGQ is something that has already been given a green signal by the 1998 Colombo Summit," said Padma Jyoti, the Assistant Chairman of the SAARC Chamber of Commerce and Industry.

Energy is one such area that has been identified as having immense potential for co-operation between the four countries. According to an estimate, the SAGQ region has an underdeveloped hydro-potential of around 50,000 megawatts (MW) and an anticipated peak demand of about 18,000 MW by the year 2000 and 28,000 MW by 2010.

According to a recent analysis of Energy South Asia, a bi-monthly magazine published from New Delhi, over the next two decades, Bhutan is expected to have surplus power generation while Nepal is likely to be deficient in the near term but have a surplus in the long term. Bangladesh could be surplus if gas reserves that are abundant there are developed fast enough.

"The eastern and north-eastern regions of India are expected to be surplus, but they would need to supply energy to the deficient northern, southern and western regions of the country," the report said.

In such background, experts say, speeding up the setting up process of the regional grid should be the top priority of the governments - given the pattern of power demand. "If we are to have such a grid, the four countries can benefit a lot," said Prachar Man Singh Pradhan, the Head of Planning at the Nepal Electricity Authority (NEA). "It would reduce the cost of constructing transmission lines across our kind of rugged terrain and others (costs) drastically."

While the SARI and the region’s officials gear up to carry out the viability and feasibility studies of the proposed sub-regional grid, bilateral co-operation and exchange among Nepal and India and India and Bhutan continue to thrive. Nepal exports about 23 gigawatts hour (GWh) of electricity to the eastern region of India and imports 60 GWh or electricity from the eastern and northern regions of India.

Bhutan has been exporting electricity to India from its Chukha and other projects, while a number of other big projects that are being financed and executed by and for India are under construction. And "a least-cost short-term option for Bangladesh is to import power from West Bengal, India, where surplus capacity exists," said the Energy South Asia analysis.

Middle class turns out to be honest tax payers

By Razen Manandhar

KATHMANDU, Jan 9 - While business tycoons are showing lukewarm response to the government’s appeal to voluntarily disclose income sources, the residents of the capital, mostly from lower and middle class are elbowing each other to pay house and land taxes at the Kathmandu Metropolitan City Office.

Purushotam Lal Shrestha, a owner of a small one-floor house at Tahachal, was standing in a long queue, just to know whether he needs to pay tax or not at the KMC central office today.

"I read in the newspaper that all the citizens have to pay their tax by mid-January. I don’t think my small house, and sons working in a small business firm earn enough that they should pay tax but it’s better to know it," he said.

Chandra Maya Tamang of Kuleshwor said her husband has been waiting in the tax queue for four hours. "If it is a government rule, we have to follow it," she said.

Ram Sharan Humagain, the chief of Revenue Department of KMC, said the government’s notice on income tax has unexpectedly increased the number of tax payers by almost 70 times in the past two weeks.

"In general we used to collect Rs 15-20,000 maximum for land revenue as well as land and house taxes in one day. But since the government issued the notice, we have been seeing an unmanageable rush. Just on Tuesday, we registered 351 files and collected Rs 14,05, 571.

"We had a record collection of over Rs six million on Monday as a heavy amount of revenue was collected from a corporation which too showed interest in paying land tax."

The KMC officers, amazed by the dramatic flow, have added 100 plastic waiting chairs, but even so, there are a lot of people waiting outside the complex. The tax counters were open even on last Friday, Saturday and Sunday, which were actually holidays marking the 11th SAARC Summit.

Officials said that the Land Revenue Section used to have only two personnel, but now seven people are working. Even that number, they said, was insufficient to deal with the tax payers. In the Land Tax Section, 15 people are working 12 hours a day to deal with around 100 files a day. "Still we have to keep the clients waiting for two weeks," said Humagain.

He said the situation is similar in almost all the ward offices where he has to send additional staff to cope with the growing number of tax payers.

In wards 2, 3, 4, 5, 29 and 34, KMC has developed a mechanism to set land and house tax amounts at the central level and distribute the tax bill to the residents at their doors. In other wards, either ward offices or the central office collect the tax.

Naresh Kumar Regmi, the assisting executive officer of KMC, said that though the government’s appeal was not intended for land revenue and house and land tax, the middle-class people have been thronging to clear their taxes.

"It shows that the middle class people at least do feel the responsibility to pay off their taxes in time. That’s being a good citizen," he said.

One Maoist killed, 18 suspects held

Post Report

KATHMANDU, Jan 9 - Security forces intensifying a crackdown on Maoists arrested 18 suspected rebels across the country on Tuesday. A rebel was also killed by the bomb which he himself tried to explode in Rakam Village Development Committee(VDC), Surkhet, said the press release issued here today by the Home Ministry

Two civilians from Rakam VDC were severely injured following a attack by the Maoists. They have been identified as Top Bahadur Rana and Ghan Shyam Basnet. It is learnt that they are currently undergoing treatment at the local hospital. The release also said that terrorists set off a socket bomb at the residence of former minister in Budhabare, Jhapa today leaving it partially damaged. However, no one was hurt in the incident.

Similarly, the press release issued here today by the Defence Ministry said that armed forces arrested 18 suspected rebels and recovered large cache of arms across the country. In an operation against the rebels, security forces have seized large amount of explosive materials, documents and guns across the country, the release said.