National 7 (Spotlight Weekly)

Rescue Disorder

Despite a Supreme Court ruling, the factory remains closed because of financial constraints

By THAKUR AMGAI

Only the legend remains. Companies that once earned enough to pay handsome salaries, perks and bonuses are now bankrupt. Himal Cement Company, ranked among the more successful ventures, made enough profit to pay millions in revenue to the government. Unable to pay its staff for several months, it was shut down over a year ago.

The company set a manufacturing record in Nepal by producing up to 360 tons of cement a day. Today, the deserted factory buildings and premises in the southern suburb of the city stand as a stark reminder of the improper management and corruption prevalent in public enterprises.

Himal cement factory : Forced to bite the dust

The HCC was closed after the council of ministers decided in December 2001 to shift it outside Kathmandu valley and dismiss its staff after fulfilling the financial responsibilities. The factory was accused of polluting the environment of Kathmandu Valley and adding financial burdens on the government. The company was running in loss for a few years, and the privatization unit of the government had listed it with priority.

However, no private party showed interest in buying the company. The HCC should not have been liquidated if it was to be privatized, critics say. After all, a company that is in operation fetches a better price. Ever since the HCC's closure, more than 500 people who worked there have been forced to while away time at home.

Last November, the Supreme Court ruled the closure as illegal. However, the government is finding it hard to implement the apex court's order to reopen the factory because of financial difficulties. The employees waited for a month for the government to implement the court order. When it failed to do that, they drew the attention of the prime minister. The Prime Minister's Office issued a directive to the Ministry of Industry to implement the order. The factory remains close and the employees - and the general public - are wondering why.

The spokesman of the Ministry of Industry denied any knowledge of the implementation of the Supreme Court order. However, Director-General of the Department of Industries Bharat Bahadur Thapa clarified that matters have been delayed due to the lack of financial resources. He said the government is busy collecting the huge amount of money required to pay the staff salary and fulfill other financial duties.

After receiving the directive from the Prime Minister's Office, the Ministry of Industry prepared a proposal demanding Rs.160 million for the re-opening the company and sent it to the Finance Ministry, sources said. But the latter replied by asking the Ministry of Industry why did it not appeal the order.

The Ministry of Industry seems determined to re-open the company. Negotiations are going on between the workers and government officials. The ministry is prepared pay the salary of a few months to get the factory running again. The workers, for their part, are unwilling to return to work until they are paid fully. If the government was going to re-start the factory after 14 months, why did it close it in the first place? That question remains unanswered.

The employees reject the Sher Bahadur Deuba government's criticism that the company was polluting the valley. One of the cement plants already has been equipped with pollution-control equipment, they say, while another one bought for a high price has been lying idle.

The employees have larger question, too. How did a company that used to distribute staff bonus until five years ago all of sudden go into loss? The answer should be found by running the company, not by closing it.