NEWS NOTES (Spotlight Weelky)

Army Officers Held

The military headquarters has taken into custody a group of army officers on charges of indulging in corruption, a leading daily reported Monday, quoting senior military sources. According to the report, Lt.-Colonel Rohit Deuja of the personnel department, Major Kedar Dhakal and five other officers have been taken into custody after military officials received complaints that they were involved in a scam while recruiting soldiers. The Royal Nepalese Army has started recruiting 5,000 more soldiers in view of the security operations to contain the Maoist insurgency. King Gyanendra, supreme commander-in-chief of the army, has been informed of the detention of the senior army officers. His Majesty has asked the military leadership "to take action against the culprits that would serve as an example," the report said. Nepal Samacharpatra Jan. 28.

Trade Treaty Still Uncertain

With barely a month left for the expiry of the bilateral trade treaty, India's insistence on its demands has raised uncertainty over the accord, a leading daily reported Monday. The daily quoted an unnamed senior government official as saying that Kathmandu had received an invitation from New Delhi to hold joint-secretary-level talks on renewing the treaty. Four rounds of official talks have failed to produce an agreement. India has objected to what it calls an "export surge" of such Nepalese products as vegetable ghee, acrylic yarn, steel pipes, zinc oxide and copper wires. New Delhi has demanded introduction of up to 50 percent value addition in those products. Nepalese officials want to limit value addition to 20 percent. The trade treaty, which expired on December 5, was extended for three months through mutual consent. Kantipur Jan. 28.

'TA Goes Back To Donors'

Up to two-thirds of the technical assistance Nepal gets each year goes back to the donors, authorities said. Auditor-General Bishnu Bahadur K.C., however, said the exact amount going back to the donors was difficult to calculate because his office is not allowed to audit foreign-funded projects. K.C. was speaking at a meeting convened by the Public Accounts Committee of parliament Wednesday. Responding to questions, Finance Minister Dr. Ram Sharan Mahat said the government was trying to accommodate all forms of foreign assistance under national accounts. Finance Secretary Dr. Bimal Koirala said there had been some improvement in this direction over the last few years. Gorkhapatra Jan. 24.

Agriculture Center Destroyed

The building of the Agriculture Services Center at Lanti, Bhotechour in the mid-western district of Salyan was destroyed in Maoist attacks Sunday night, a leading daily reported Wednesday. A group of nearly 200 Maoist insurgents had exploded two improvised bombs within the office building and burnt official documents. The rebels had asked residents to remain indoors and to shut their windows before setting off the explosions. An unexploded socket bomb was recovered from the site, the report said. Kantipur Jan. 23.

'Boost Privatization To Avoid Disaster'

Experts and participants at a pre-consultative meeting on the eve of the Nepal Development Forum (NDF) here Tuesday have urged the government to expedite the privatization of state-owned enterprises (SOEs) in order to avoid a major economic disaster. Saying that the privatization of SOEs was a panacea, the participants said it was nevertheless one of the best alternatives to accelerate economic growth. Finance Secretary Dr. Bimal Koirala admitted that the government's investment in SOEs had failed. In 1999, the rate of return to the government from SOEs was around 2 percent, a figure that has since turned negative, he said. Presenting a policy paper on private-sector development, Secretary at the Ministry of Industry, Commerce and Supplies, Bhanu Prasad Acharya, said the government had undertaken a series of measures to create an enabling environment for increased private-sector participation in economic affairs. Leading dailies report Jan. 23.

IFC Invests In Nepalese Company

The International Finance Corporation (IFC), the private-sector lending arm of the World Bank Group, has invested in the International Leasing and Finance Company (ILFC), a joint venture of Nepalese and Korean investors. It is the first investment of the IFC in Nepal's financial sector. Set up eight years ago, the ILFC has also invited Rs 50 million worth investment from KDB Capital Company of South Korea. "Our participation in the ILFC is in accordance with the IFC's objective to encourage private-sector investments

in its developing member countries," said Mary E. Iskenderian, the IFC's director for South Asia. Managing director and CEO of the ILFC, Donghyuk Kim, said the association of his company with the IFC had not only upgraded the image and credibility of the company, but also increased its social responsibility. Compiled from reports Jan. 23.

Five Maoists Killed

Security forces shot dead five Maoist guerrillas during an operation on Sunday. According to the Defense Ministry, three insurgents were killed when soldiers responded to Maoist attacks from a cave at Surungdi in Baglung district. Two injured rebels plunged in the Kaligandaki river and escaped. Two other insurgents were shot dead in encounters in Taplejung and Bajhang districts. Security forces have taken into custody 20 suspected terrorists for interrogation, the ministry said. Meanwhile, four soldiers and one Maoist cadre traveling in an army vehicle were injured when Maoist insurgents exploded a landmine in Sindhupalchok district. The injured soldiers were airlifted to Kathmandu for treatment. Compiled from reports.

Maoists Kill 82 People After Emergency

Maoist rebels, declared as terrorists by the Nepalese government, have killed 82 people since the imposition of the nation-wide emergency, a human rights organization has said. In a statement issued Monday (January 21), Informal Sector Services Center (INSEC) said the rebels had killed 25 political workers, eight teachers, five students and 44 other people. It did not give the number of security personnel killed since the emergency was imposed. INSEC, which brings out an annual Human Rights Yearbook, said children and women had fallen victim to Maoist-triggered explosions. Describing the Maoists' act as apolitical, inhuman and brutal, the organization has urged the rebels not to repeat such incidents. Last Friday, Amnesty International had made an appeal to the Maoist leadership not to kill and maim people, including teachers, who were not directly involved in the conflict. Compiled from reports Jan. 22.

Aviation Companies Lay Off Employees

Suffering from a sharp decline in tourist inflows, domestic airlines companies have started laying off up to 25 percent of their staff, reports said. According to the Airlines Operators' Association of Nepal (AOAN), some airlines have decided to lay off their staff while others are forcing their employees to go on "long leave without pay". The private airlines have also attempted to minimize their losses by either withdrawing their regular flights or reducing the frequency. Fifteen domestic airlines employ over 4,000 people. Kishor Silwal, vice-president of the AOAN, said most of the companies were flying their aircraft just to show their existence. Domestic airlines operators have urged the government to increase the domestic fare, claiming that the cost of operation has increased during the last decade. The cost of aviation fuel has gone up by over 80 percent and there has been a significant rise in other civil aviation charges. The insurance premium has also increased significantly after the September 11 attack, the airlines operators said. Compiled from reports Jan. 22.