RNAC Twin Otter crashes, all aboard feared dead

BY A STAFF REPORTER

Kathmandu, July 27: A Royal Nepal Airlines Twin Otter crashed in Dadeldhura District this morning. All 22 passengers and three crew-members aboard are feared dead.

Registered as 9N ABP, the aircraft had taken off from Bajhang at 10:11 this morning for Dhangadi when it lost contact with the Dhangadi Tower two minutes before it was expected to land at 10:33.

Having received OK signals from the Twin Otter, the tower officials had even communicated with the pilot and offered him the run-way to land.

When the plane did not arrive in the scheduled time, the tower began to contact elsewhere to know about the aircraft’s whereabouts.

Rescue workers located the crash-site near Kurumle Hill at Jagbuda Village District Committee in Dadeldhura District around 400 kilometres west of here.

Situated some 20 miles north-east of Dhangadi, the crash site is at 4,300 feet from the sea level.

According to Rajesh Dali, Airport Manager at Tribhuvan International Airport (TIA), who also heads the Rescue Co-ordination Centre at TIA, a helicopter has landed some 200 feet below the crash site where around three dozen police officials are already operational.

Two helicopters are kept stand-by at the Nepalgunj Airport, said Airport officials.

One dead body from the crash site, said Dali, was flown to Nepalgunj this evening. "Other dead bodies will be flown to Nepalgunj tomorrow early in the morning," Dali said late in the night.

Of the 22 passengers in the ill-fated aircraft, RNAC states, 18 were males, one female and three infants. Among the crew members, the Captain was Wangdi Lama. The two others were First Officer Darshan Shrestha and Air Hostess Tina Baba Shrestha.

Officials in RNAC Headquarters said they have not received the passengers’ list as of yet. However, Dhangadi Police Unit has the name-list that includes Birendra Bahadur Singh, Ganesh Bahadur Singh, Gagan Bahadur Singh, Dinesh Bahadur Singh, Madan Joshi, Prakash Bahadur Singh, Surya Bahadur Bhandari, Kabindra Bahadur Singh, Krishna Bahadur Khadka, Keshav Khadka, Yuvaraj Ghimire, Shiva Singh Dhami, Bharat Bahadur Thapa, Gyanendra Bahadur Thapa, Rameshwar Paneru, Karma Raj Badayat, Sunita Kafle, Upendra Dhakal, Rima Ray Pokhrel, Mahendra Lal Karna, Kehsav Thapa and Sanskriti Aryal.

"After the aircraft lost its contact with the Dhangadhi Tower, the corporation co-ordinated with Civil Aviation Authority of Nepal (CAAN) and sent helicopters and private aircraft to the accident site," states a press-release of RNAC.

A helicopter of Karnali Airways, according to RNAC press statement, first discovered the crash site at around 3:30 this afternoon.

Before flying to Dhangadi, the Twin Otter had made five flights in the far-western region this morning. (First Nepalgunj-Simikot-Nepalgunj. Second, Nepalgunj-Bajura-Nepalgunj. And, thirdly, Dhangadi-Bajhang).

Twin Otters are believed to be the most suitable aircraft for Nepal’s topography and terrain. These aircraft have been found the best to fly in the mountainous region since they can operate under Short Take Off and Landing (STOL) system – inevitable in the mountains.

The reason of the Twin Otter’s crash still remains unknown. Local eyewitnesses who saw the crash say that the plane crashed against a pine tree. No officials, however, confirm to the reason of the crash.

Most of the crash-reports in the country have pointed pilot errors as the main reason of the crash. Before the Twin Otter crash this morning, the most recent crash was that of an Avro of Necon Air while approaching the Tribhuvan International Airport from the east of Kathmandu on September 5.

The inbound aircraft hit a communication tower atop one of the hills rimming the Capital Valley in the west. All 15 passengers and crew members had died on the spot.

On July last year, a cargo jetliner of Lufthansa crashed against Bhasmasur Hill in the south of the Capital killing all five crew-members.

Meanwhile, the government has formed a seven-member investigation committee to probe the crash and submit a report within 60 days to the Ministry of Culture, Tourism and Civil Aviation.

According to the ministry, the committee has been formed under the chairmanship of the Deputy Attorney General.

PM Koirala’s coming India Visit  ‘Preparations going in full swing’

From Lok Deep Thapa

New Delhi, July 27: Prime Minister Girija Prasad Koirala arrives in New Delhi Monday amidst mixed reactions back home on what achievements he can make during his weeklong official visit to India. While Prime Minister Koirala himself has said the warm ties between the two age-old friendly nations cannot be measured in terms of money and agreements, yet, it is sure he will bring up matters of national interest during his talks with the Indian leaders, including Indian Prime Minister Atal Bihari Vajpayee.

Minister for Foreign Affairs Chakra Prasad Bastola, who will be accompanying Prime Minister Koirala, indicated that such issues like the 1950 Nepal-India Treaty, Kalapani, Bhutanese refugee crisis and the recent Luxumpur dam controversy will be brought up during the talks. Minister Bastola said, "In a high level visit like this, the Prime Minister will take up all the important issues at hand. It is only that certain issues will get emphasis".

Meanwhile, talking of the preparation going on here regarding the important high level visit, Royal Nepalese Ambassador to India Dr. Bhekh Bahadur Thapa said that "preparations are going on in full swing and all the programmes have been finalised".

Speaking to this reporter, Dr. Thapa also informed that he had talked with all the government departments concerned and brought to the notice of the ministers different issues from the point of view of Nepal. "However, we can’t presume anything now, much will depend on the meetings between the Prime Ministers of Nepal and India," he cautioned.

Talking of the help extended by India to Nepal in its development efforts, Ambassador Thapa expressed the view that it is time now to explore new areas of cooperation, even in and old agenda like water resources. "High tech is another area where Nepal can seek Indian expertise," he said.

Echoing similar views, a high ranking official in the Nepalese Foreign Ministry, expressed the belief that the forthcoming visit could contribute in building a framework under which different issues can be tackled.

"The BP Memorial Hospital at Dharan is a monumental proof of the warm Nepal-India ties and also India’s great achievements in modern technology. We must seek similar cooperation in the future for our country to benefit further," he said.

Experts agree that just the fact that Prime Minister Girija Prasad Koirala is going on a visit to India, is already an achievement. They make such comments because, the last time a Nepali Prime Minister visited India, was in 1996. Also, from 1997, after the then Indian Prime Minister IK Gujral visited Nepal, no Indian Prime Minister has made an official visit to the Himalayan kingdom.

"This is too long a gap between visits of the heads of governments of two such close neighbours," former Indian Ambassador KV Rajan had said to this reporter before leaving after completing his assignment in Nepal.

Meanwhile, intellectuals agree to the view that both the countries should leave aside any attitude of suspicion and look at the warm and cordial ties with a broader vision. However a senior Foreign Minister pragmatically pointed out that bilateral relations, no matter how good, "should not be taken for granted".

Speaking of the visit itself, noted intellectual Dr. Biswomver Pyakurel expressed the firm belief that the present visit would contribute significantly in "normalising" ties between Nepal and India.

He explained, "The beauty of Nepal-India relations is that, no matter how many small problems may have cropped up, a formal visit at such a high level, always manages to solve all the economic problems. I expect the same to happen this time also". Dr. Pyakurel also informed that he had met Prime Minister Koirala to brief him on the upcoming visit and he had also interacted with Indian ministers and intellectuals. "The message I got was that issues in trade, banking, investment and even in tourism will all be solved amicably," he said.

Issues like the special additional duty applied by India on imports, the Luxmanpur Barrage, Mahakali Treaty, Kalapani, the Bhutanese refugee crisis and the chronic 1950 Treaty have been debated a lot in Nepal. People expect India to be sympathetic to Nepal’s demands regarding these issues.

It is good that these and all other issues will be discussed during the forthcoming visit of Prime Minister Koirala. But like mentioned by Nepalese Foreign Minister Bastola, "From time to time, viewing the national and international changes that have taken place, we have to get into all issues seriously and it is in the best interest of both Nepal and India to engage in serious dialogue". It can be hoped PM Koirala’s visit will open the doors for such an environment to be developed.

Oppns stall House over bill issue

BY A STAFF REPORTER

Kathmandu, July 27: Today’s meeting of the House of Representatives was stalled after all the lawmakers from the opposition bench walked out of the hall during the discussion on the ‘Bill to amend some Nepal Act-2057.’

The opposition expressed concern over the procedure ruling Nepali Congress adopted to pass Bills in the House. They called it "despotism of majority."

Nepali Congress enjoys a strong majority of 113 members in the 205-seat House of Representatives.

Speaker Taranath Ranabhat tabled the Bill for discussion after Law, Justice and Parliamentary Affairs Minister Mahantha Thakur presented it at the meeting. As soon as the discussion began, the opposition MPs alleged that the government intended to pass the Bill with little concern for their amendment proposal.

"The Bills are passed merely by voice votes, which shows that the majority government has downplayed the role of opposition," they said. "Even the amendment proposal of the concerned parliamentary committees are not considered."

The Bill proposes to amend Industrial Act-2049, Foreign Investment and Technology Transfer-2049, Income Tax Act-2031, Cooperative Act-2048 and Civil Service Act-2049, Minister Thakur stated in the amendment proposal.

Subash Nemwang of the Communist Party of Nepal — Unified Marxist-Leninist, Dr. Prakash Chandra Lohani of the Rastriya Prajatantra Party, Chitra Bahadur K. C. of the United People’s Front, Rajendra Mahato of Nepal Sadbhawana Party, Lilamani Pokharel of National People’s Front and Narayan Man Bijukchhe of Nepal Peasants a Cnd Workers’ Party announced that their respective parties boycotted the meeting.

After all the opposition MPs emptied the hall, Speaker Ranabhat declared that the meeting was postponed till 1:00 p.m. tomorrow.

Speaking at the Special Hour earlier, Nemwang accused the government of failing to inform the House about the Rautahat case even after the three-member probe committee submitted its report. "This is an insult of the prestigious House."

A few months back, State Minster Aftaf Alam’s house in Rautahat was set on fire and some UML party workers were arrested suspecting to have been involved in the incident, which UML denies.

Another UML lawmaker Ishwar Pokharel said that the government’s decision to dissolve Nepal Transportation Corporation plunged the future of some 642 employees and their dependents into darkness. He demanded that the government adjust them to other corporations of similar nature.

Bidhya Devi Bhandari asked the government to honestly investigate the rape and murder of a 14-year housemaid at the house of a Supreme Court Judge and punish the real culprit.

RPP lawmaker Pashupati Shamsher Rana accused the treasury bench of interrupting him while expressing his party’s views in Parliament yesterday. "They tried to deprive me of my freedom of speech," he said. "This is despotism of the majority."

Pari Thapa of UPF said that the problem of citizenship is not that of the Terai region. "There are countless number of people in the hilly districts who have not yet received the document which is important in all official activities."

RSS adds: Subas Nemwang of the CPN-UML who was the first to speak during special time at the house of representatives today, said that though the report of the Judicial Commission enquiring into the incident which took place in Rauthat on Chaitra, 2055 B.S. submitted to the Prime Minister two days ago had not been made public by the government-owned mass media, the intention of the government was suspicious.

Mr Nemwang demanded that the report be made public immediately and its suggestions implemented.

Ananda Prasad Dhungana of the Nepali Congress alleged that the CPN-ML had politicised the incident of murder of Avadhi Mandal and Ghanshyam Mandal at Govindapur VDC of Dhanusha district and another a person called Sobhit Yadav at Yagyabhumi VDC. He said that the CPN-UML was trying to implicate the NC cadres in this connection and sought immediate probe into the incidents and stop harassment of innocent people.

Iswar Pokharel of the CPN-UML said that if the property of the Nepal Transport Corporation worth billions was mobilised properly, it would not be a problem to pay salary to 642 employees working there. The decision to dissolve the corporation should be revoked, it be operated smoothly and attention be paid so that the property of the people and the nation is not misused, he added.

Pashupati Shumsher J. B. Rana of the Rastriya Prajatantra Party (RPP) said that the stalling of the proceedings of the House of Representatives yesterday by various members of the Nepali Congress raising point of order when he was speaking was an example of the dictatorship of the majority .

Then, speaker Taranath Ranabhat pointed out the need for the MPs to pay attention to the rules and regulations of the House before raising point of order.

Pari Thapa of the Rastriya Janamorcha said that as the citizenship bill which had been passed was contrary to the provisions of the Constitution, it could not be recognised as law and suggested introduction of identity card or passport to check non-citizens.

Mrs Vidya Devi Bhandari of the CPN-UML said that attempts were being made to cover up the killing of 14-year-old girl Sarita at the House of Supreme Court Justice Bhairav Lamsal on July 13 and demanded that the real culprit be arrested and stern action taken against him.

Village that rehearses disaster safety

BY A STAFF REPORTER

Kathmandu, July 27: Ding dong! The big bell sounded the alarm and people rushed out from their homes, walked through the evacuation trail towards safety. A video clipping showed the people of Chisapani village of Agra VDC of the Makawanpur district practising a drill in case there is a natural disaster. The village was one of the worst hit areas of the devastating flood and landslide of 1993, which had killed almost 1,500 and rendered colossal loss to property and agricultural farms mainly in the central development region. For many people that year’s destruction due to heavy rain, flood and landslide was probably the worst in their living memories.

Every year, Nepal sees countless incidences of flood and landslide. caused by heavy monsoon.

The government through the Department of Soil Conservation and Watershed Management undertook a disaster management project in 1996 with the cooperation of JICA Nepal office and the Nepal Red Cross Society. The project selected Chisapani as its working site and started work in March 1998. Two years later the project has really worked wonders.

"You can’t prevent floods and landslides especially in a hilly country like Nepal with fragile geological condition, but you can save people from dying," said Yuka Makino, a disaster management expert, who has worked at the Chisapani project. Floods and landslides are only a disaster when someone dies, she said.

A one-day symposium was organised in Kathmandu today to apprise about the Chisapani experience in managing disaster. The Chisapani experience shows that with proper management and preparedness precious lives can be saved and the damage could be lessened.

Speaking as chief guest at the symposium vice chairman of the National Planning Commission said although the government’s budget for disaster management and prevention is very little compared to the scale of damage the country suffers from natural calamities every year, the Chisapani project has shown that much can be done with limited resources and with people’s participation.

In his welcome speech Sanjeev Kumar Thapa, acting Secretary General of the Nepal Red Cross Society said the community based disaster management and the community development programme launched at the village has proved highly successful with promising results.

Ken Hasegawa, resident representative of JICA Nepal Office said calamity relief cooperation in water-induced disaster is one of the major focus of JICA.

In 1991 JICA had helped in the establishment of Disaster Prevention Centre to strengthen HMG’s capacity in disaster management and prevention. The JICA resident representative said the Chisapani project has been undertaken with people as beneficiary beside disaster management and mitigation.

Similarly, Minister-Counselor of the Japanese Embassy, Koichi Yotsuya talked about natural disasters in Nepal and he called the Chisapani project as a sharing of experience between the two countries in managing disaster.

Likewise, from the chair, Ramesh Kumar Sharma, chairman of the Nepal Red Cross Society said the lesson of Chisapani could be successfully replicated in other areas and the Nepal Red Cross Society will share this experience with global red cross network.

Under the project, there have been 17 check dams and revetment constructed. Two schools have been reconstructed to double them as shelter if there is a disaster. Similarly, the hill sides have been bolstered with wire fencing, tree and grass plantation, terracing and diversion channels and development of pre-warning systems like foot trail, warning by bell and rain gauge.

More importantly, the community development aspect of the project includes public awareness about disaster management and improvement of skill related activities so that people can cope with life after disaster.

According to Makino, the main person behind the project, the most encouraging outcome of the project is that the people of the village feel and know they can do something if disaster strikes again and they now better how to deal with it.

Seconding Makino, Ram Bahadur Ghale, chairperson of the Agra VDC said the project has increased the people determination to manage disaster and fight with it rather than migrate from the village if there is a disaster.

Right to information bill in offing

BY A STAFF REPORTER

Kathmandu, July 27: Following the passage of the Right to Information Bill from the Parliament any Nepali citizen will have the right to seek information on issues of public importance from government and non-government agencies.

"The preliminary draft of the Bill has been submitted to the government and the government is doing the necessary homework to table the Bill in the House," Director General of the Department of Information Yubaraj Pandey said.

The proposed bill was prepared at the initiative of the Nepal Journalist Federation after holding discussions among individuals associated with the communication and legal sectors.

According to the President of the Federation, Suresh Acharya proposed the Bill was drafted with the objective of protecting the rights of every Nepali citizen to his/her right to information as provisioned by the Constitution of Nepal 1990.

Speaking at an interaction programme organised by the Kantipur News Club, Acharya said, " We want the government to pass the Bill from the ongoing session of the Parliament."

The proposed Bill states that the government along with the public and private enterprises will have to name their information officer who will be responsible to disseminate the information demanded by the press or any Nepalese citizen.

The information officers must give out the information on issues of public importance immediately if demanded by the press or any other citizen.

On conditions that the information officer is unable to provide the demanded information, the information officer must give in writing elaborating the reason why he is unable to do so. The officer is required to provide the information within three days after notifying the concerned person demanding the information.

Those seeking information must submit in writing the type of information that they require, the proposed bill has stated.

The government can specify fees for the costs incurred while photo copying the information demanded.

The proposed bill has also categorised the areas on which the information officer will not be compelled to give out the information demanded. The information officer will not be compelled to provide information on issues related with national security, criminal investigation, issues that can adversely affect the country’s sovereignty and territorial integrity.

Similarly the officer will not be forced to give information on issues that can negatively affect the country’s economy and the issues that affect the commercial and industrial wellbeing of the public enterprises and banks.

The concerning officer is not forced to give immature information on the budget, custom tariffs, foreign exchange, interest rates and other taxes that could bring illegal gain or any form of loss to individuals, the proposed bill states.

As per the proposed Bill any individual who is denied information can file a complaint to the institution head of any government or non-government agency within seven days.

If the complaint is justified, the institution head must initiate steps to provide the demanded information within ten days. In case of denial to give the information, the institution head must give the reasons in writing.

In case the institution head endorses the information officer’s decision not to provide information then the person seeking the information can file a suit at the Appellate Court within fifteen days.

On conditions that it is proved that the concerning information officer has been intentionally denying to give out the demanded information without any valid reason then the officer can be subjected to departmental action or a penalty of five thousand rupees or both.

‘Indian Embassy statement distorts facts about dam’

Kathmandu, July 27 (RSS): Chairman of the House of Representatives Foreign Affairs and Human Rights Committee Som Prasad Pandey, in a press statement issued here today, said that attention of the committee has been seriously drawn by the press release issued by the Indian Embassy on July 25.

He said that attempts had been made to distort, twist and confuse the fact related to the process of the construction of the Laxmanpur dam and embankment at the border area of Banke district unilaterally by the government of India without the consent of Nepal without taking care of the international norms, values and conventions.

Chairman Pandey said, "The fact is that 13.60 km long embankment is at a distance of 300 metre from Nepal-India border pillar No. 19 and 650 metre from border pillar No. 21 at Holiya VDC of Banke district and Laxmanpur dam is at a distance of 4 km from Nepal-India border but the the press release states that it is at a distance of 8 km from the border and the dam will not affect the flow of the river is fictitious and unsubstantiated.

Not only this, it has been stated that the height of the dam is lower than the nepalese territory; there is no question of Nepalese land being submerged; the embankment has been constructed in accordance with international norms, and extensive discussions were held with Nepal before its construction.

It has also been mentioned out of context that 19.50 metre long embankment at the Banbasa barrage on the Sharada river has affected India. In fact, the press release of the Indian Embassy concerning Laxmanpur dam is aimed at making the problem more complicated instead of resolving it," he added.

The press release has been issued at such time when the House of Representatives Foreign Affairs and Human Rights Committee has already submitted its report on the dam and the embankment unanimously to the House.

Drawing attention to the serious and far reaching consequences of the Laxmanpur dam, the committee reached the conclusion that there was no option other than to demolish it, the press statement states.

He has appealed to all not be misled by this kind of press release issued at a time when the whole nation was feeling the adverse impact the embankment and the dam and demands were being made for serious talks to protect the interest of Nepal during the Prime Minister’s forthcoming visit to India.

Calling upon the concerned agencies not to twist facts and create further complications between the relations between the two countries, Mr Pandey has requested the Prime Minister to firmly proceed with the talks with India to eliminate the negative impact caused by Laxmanpur dam and embankment and protect national interest.

Poor corporate governance in South Asian organisations

BY A STAFF REPORTER

Kathmandu, July 27:Despite having adequate capital and other resources, most of the governmental and non-governmental organisations on South Asia often become the victims of failure owing to lack of corporate governance, said economic experts.

They were of the view that country’s economic development largely banks on the managers that how they are efficient to promote the culture of corporate governance.

Organisations whether they are in the governament or private sector should always be accountable to the public, they said at a seminar on ‘Corporate Governance’ organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) today.

Participants while presenting their views stressed the need to develop corporate governance in all the government and non governmental organisations in Nepal.

Speaking on the occasion Secretary at the Ministry of Finance Dr. Bimal Koirala said that corporate governance should be priority of organisations that help promote healthy economy in the country. As institutional infrastructure is vital to develop corporate governance, the existing mechanism should be taken into consideration, he said adding "A good corporate governance assures a good social impact."

The reason behind the failure of differnt organisations in doveloping countries like Nepal, India and Pakistan is the poor corporate governance that come out of poor sense of accountability towards shareholders or public, said Dr. Omkar Goswami from India. As the world is rapidly moving towards globalisation, according to him the economic development is nor possible without becoming transparent.

Dr. Goswami while speaking about the corporate governance also stressed the need to make the bankruptcy law more effective. Damber Dhungel chief of the Security Board explained that corporate governance has been evolved with the change of time in Nepal. He stressed the need to promote corporate governance in government institutions as well as private organisations.

B. D. Ramaswami spoke about the essence of promoting corporate culture.

From the chair Padma Jyoti - chairman of Corporate Governance Committee in the FNCCI described the need for organising the seminar.

Around 40 managers and academia from different governmental and non - governmental organisations were taking part in the seminar.

HM confers honorary title

Kathmandu, July 27 (RSS):His Majesty the King has conferred the honorary title of Sahebjyu on Sri Bikram Shah of Hetauda Municipality Ward No. 4 and honorary title of Chautariya on Ratna Bahadur Shaha of Kathamndu Metropolitan City (KMC) Ward No. 23 Gyaneswor and Bhupendra Prasad Shaha of KMC Ward No. 2.

This is stated in a notice issued today by the Principal Secretariat of His Majesty the King.

Felicitation

Kathmandu, July 28 (RSS):

His Majesty The King has felicitated president Alberto Kenyo Fujimori of the Republic of Peru on the occasion of the independence day of Peru.

In a message of felicitations, His Majesty has extended best wishes for the president’s personal health and happiness and for the progress and prosperity of the people of Peru.

Best wishes

Kathmandu July 28 (RSS):Prime Minister Girija Prasad Koirala has congratulated Prime Minister Alberto Bustamante of the Republic of Peru on the occasion of the independence day of Peru.

In a message, Prime Minister Koirala has extended best wishes for the Peruvian Prime Minister’s good health and happiness and for the progress and prosperity of the people of peru.

Auspicious time

Kathmandu July 27 (RSS): The auspicious time for installation the idol of the Rato Machhendranath on the chariot will be 10.20 a.m. on Saturday.

The auspicious time has been calculated by astrologer Kirti Bharat Joshi who is the son of former chief astrologer the late Kirti Brahmananda Joshi.

Brahmins, Bajracharyas and astrologers will solemnise the worship and homa after the idol of Red Machhndranath is re-installed on the chariot.

As the chariot of Rato Machhendranath overturned at a distance of about 150 metre away from Jawalakhel chowk, the idols were taken out and placed at Jawalakhel Pati.

The Bhoto Jatra festival is observed on the fourth day of the chariot of rato machhendranath reaching jawalakhel chowk.

The Rato Machhendranath was installed on the chariot at Pulchowk on May 5.

Salary of civil servants will not be reduced

Kathmandu, July 27 (RSS):His Majesty’s Government has made it clear that the amount being received by the civil servants will not reduce once the new salaries come into force.

According to highly placed sources of the Ministry of Finance, the amount being received will be more than the proposed salaries in the public corporations, adding that the government has no intention of reducing the amount received monthly and that it has been adjusted in the pay scale so that the amount received will not be reduced.

There are differences in the kinds of allowances and their rates given in the public corporations, the source said, adding that there is no certainty that these allowances can be met by the capacities of the corporations and there is no solid basis for the facilities being given to the employees working in the corporations which are financially bankrupt.

There is no situation to prove the justifiability of the allowances being given for the sake of working in any bodies such as the banking allowance in the bank, and insurance allowance in the insurance office.

The corporations which have poor financial condition haven’t made provisions for reserve fund to be put as per the rules to fulfill future or immediate responsibilities though they have competed with one another for increasing the facilities and salaries, no arrangement has been made for gratuity, medical expenses and amount for leave and other liabilities to be given after retirement, which in turn have to be met by the government, the ministry said.

Most of the corporations have run on loss when analysed on the basis of work efficiency, the overall dividend to be received has been minimal although the HMG investment has been increased, and corporations other than enjoying monopoly have been operated in a miserable way, and called on all the responsible sections to think seriously about financial liabilities that affect the corporations in the long run.

The ministry source has made it clear that no ban has been imposed on providing annual facilities and bonuses.

The Finance Ministry had sent circulars to all the public corporations or all kinds of bodies that run with full or partial grant of His Majesty’s Government to give consent on the increase as per the financial condition of the concerned body to the extent of the reduction in the proposed salaries by taking into account all types of facilities other than the remoteness allowance in the context of the present increase in the salaries.

Likewise, as regards the annual increment (grade), the Finance Ministry will implement it after taking decision and there is a situation that the proposed pay scale will be implemented only after such decision. The report of the pay scale and grade task force is expected this week.