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spotlogo2.jpg (6318 bytes) VOL. 24, NO. 20, DEC 10 -  DEC 16  2004 ( MANGSHIR 25, 2061 B.S. )

EXTORTION


Business Under Threat

British authorities have advised ways to stem organized extortion. Will the government implement them?  

By SANJAYA DHAKAL  

Last week a principal of a school in Lalitpur received a letter demanding Rs 20,000 as ‘donation’. A suspected Maoist cadre walked into his office and handed over the letter just like that.

Shopkeepers and traders even in Kathmandu report receiving similar letters and/or phone calls. Even well-established business enterprises have not been spared the wrath of extortion, which is increasingly affecting the psyche of the whole business community in the country.

As the Maoists continue to raise funds in the name of donation to their party, the traders, teachers, government employees and others have continued to suffer from not only the financial but psychological distress as well. As most of the people fear to go against the Maoist order, they end up parting with their hard-earned money.

Teachers regularly face extortion threats in the villages. Since schools are the only government agencies that are allowed to operate even with the Maoist heartlands, teachers have become an easy prey. “We have reports that teachers in some parts of Bardiya district – in mid-west Nepal – have to pay 60 percent of their annual salaries to the Maoists as donations. In other districts also, similar donations of around 25 to 45 percent is mandatory,” said Keshab Prasad Bhattarai, president of Nepal Teachers Association (NTA).

Doctors performing surgery : Risky endeavor
Doctors performing surgery : Risky endeavour

In May this year when the Maoists’ student wing had imposed indefinite strike in educational institutions, Umesh Shrestha, president of Private and Boarding Schools Organization of Nepal (PABSON) had expressed frustration over the persisting disturbances in schools. “It is an open secret that many times schools also have to pay money to buy safety,” he had charged.

However, it is rare for news stories of extortion to come out, as most of the victims prefer to remain anonymous for fear of their safety.

Concerned by the growing extortion threat and its impact on business community, authorities of Britain have offered help to Nepal. The British envoy to Nepal Keith George Bloomfield revealed that recently a team of experts from London Metropolitan Police had come to Nepal to study the problem and recommend proper course of action.

They have prepared a plan and has invited Nepal government to set up a special task force (by including representations from all security organs) to fight this menace. The plan also advises the government to provide witness protection program and undertake a pilot program first in Kathmandu Valley. They have given a report to the government a few weeks ago. The government is said to be studying the report.

“The problem of extortion is also a criminal issue, which needs to be dealt accordingly. Even if the Maoist problem is resolved tomorrow, you may continue to receive the threatening phone calls and letters,” Bloomfield said.

The British ambassador has urged coordinated action to stem the terror of extortion haunting the business community and people at large. “The difficulties of the business community has grown due to increasingly systematic and regular extortion (by the Maoists),” Bloomfield said addressing the ceremonial session of the 9th Annual General Meeting of the Nepal Britain Chamber of Commerce and Industry (NBCCI) on December 5.

“The issue of extortion has preoccupied the Industrial Security Group (ISG) about the course of action needed to check the extortion, which is expanding and increasing in amount,” he added. The ISG is a group formed to promote the interest of business community. It consists of embassies and bilateral chambers of UK, USA, France, Germany and India.

President of NBCCI Rajendra Khetan said that the ISG continuously raises the voices of industries on labor, revenue and security-related issues.

Minister of State for Foreign Affairs Dr. Prakash Sharan Mahat urged the business community to collectively resist the pressures of extortion. “Just like the people of Dailekh, you should resist them collectively. The government is ready to provide all kinds of help,” he said.

Among others, business leaders believe that the formation of such special task force would boost the capability of the government forces to deal with the extortion threats and undertake covert operations to smash the network. Earlier this year, the security forces made a botched attempt to take action against the Maoist extortionist when they ended up killing a Maoist cadre as well as an official at the Nepal Electricity Authority (NEA) Ullas Baidya. In an operation that smacked of inefficiency, plainclothes security personnel, who were hiding nearby, opened fire at a Maoist cadre named Krishna Adhikari as he was about to receive money from Ullas Baidya, a director at the NEA, near Old Baneshwore chowk on July 13. However, their bullets also hit Baidya who later died in hospital. Reports said that Baidya was acting in coordination with the security forces who had provided him with a bundle of fake notes to hand over to the Maoists.

In many cases, the Maoists have taken physical action and even killed people who refused to pay donation to them. On January 15, 2004, Gopal Giri, a mayor of Birgunj sub metropolis was shot to death by the Maoists. The news reports quoted his family sources as saying that the Maoists had asked for US$ 6000 as ‘donation’ from Giri. Upon his refusal to provide the money, the rebels had asked him to step down from the position of mayor. Later they shot him.

Incidents like these have tremendously affected the  business environment in the country.


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