Give RBB Its Due

By Our Correspondent

The government may think privatisation is the panacea to the woes of Rastriya Banijya Bank (RBB), Nepal’s largest commercial bank in the public sector, but economic experts think otherwise.

"It would be a folly to privatise an institution like the RBB which has been providing its services throughout the country," Dipendra Bahadur Chhetri, economic advisor at Nepal Rastra Bank, the country’s central bank, told Sunday Despatch. "The concept of privatisation has developed because we are not prepared to do anything for the institutions when they do not turn fruitful."

Officials at the bank agree. No thought is ever given to improving the conditions of such institutions, they say.

A few weeks back, Dr. Shankar Sharma, member of the National Planning Commission, while addressing a colloquium on RBB’s challenges had said that the government was considering privatising the bank.

Privatisation of the bank is motivated mainly by two main reasons. Internally, there is gross mismanagement. Externally, there is a lot of pressure from donors to give it up to the private sector.

Time and again, proposals have been floated to privatise the bank. About five years ago, the bank’s chairman and the then Finance Minister were at loggerheads after the World Bank and International Monetary Fund put pressure on the latter to privatise the bank.

RBB is Nepal’s first commercial bank in the public sector, but it is a loss-making institution. Ridden by one scandal after another, the bank has failed to recoup billions of rupees in loans it has doled out.

The bank is so mismanaged that it does not even have records of many account holders.

According to information furnished by the Bank to the Public Accounts Committee (PAC) last week, the bank has yet to collect Rs. 29.91 billion in principal and another Rs. 9.66 billion in interest from different parties.

According to Executive chairman Punya Prasad Dahal, the Bank has not been able to collect billions of rupees it loaned out some 30 years back. The interest alone amounts to double the principal.

Dahal has pleaded to the government to form a clean committee that will help the Bank recoup its loans.

PAC, in the mean time, is planning to form a sub-committee under the convenorship of MP Hridesh Tripathy to look into the Bank’s debts, LC scams and collateral situation. The sub-committee will present its report to the committee within two months.

Executive Chairman of the Bank acknowledges that the bank is not doing well. "Financially, we are at a loss...and we lack the means to improve upon things," he told this weekly. "We have not been able to up-to-date the information system and have not been able to computerise our system to provide quicker banking services."

The Bank has just constituted a computer software development committee which is working on a war footing to computerise the banking system.

But more than the physical infrastructure, it is motivation and commitment that the bank lacks, says Chhetri. "How can the employees be motivated and committed towards the institution when the executive chairman himself talks of resigning on one hand, but says he is holding on due to pressure from the Finance Minister?"

Landlocked Countries Need Better Transit Facilities: Koirala

By Our Correspondent

The Millennium Summit of the United Nations that saw the largest ever gathering of heads of state and government ended Friday without any historic results. But the leaders did commit themselves to give a new role for the United Nations and fight poverty and war.

The 3-day summit, though dubbed very short, was attended by 147 leaders that included Prime Minister Girija Prasad Koirala from Nepal.

Addressing the forum, he said that the development partners must help the least developed countries that have remained for too long in the shadow of world attention. Among them, he said, land-locked countries were the worst off.

"Transit countries should provide better transit facilities to the land-locked countries so that they can enjoy the global economic mainstream," he said.

The United Nations needs comprehensive reform for its rise to the challenges of the 21st century, he said, adding "We must restore an optimal balance between the General Assembly and the Security Council and strengthen the Economic and Social Council."

Premier Koirala, while in New York, was interviewed by Ritz Khan on CNN where he put Nepal’s views on the Bhutanese refugee issue, the Maoist insurgency, economic development and alleged presence of Pakistani intelligence service (ISI) in Nepal.

Who's Aiding The Maoists?

By Our Correspondent

In a surprise statement last week, a top leader of the Nepali Congress claimed that the Maoists, who are raging an insurgency in different parts of the kingdom for a republic, are being trained by ultra terrorist groups in India. The statement comes from no other than Sushil Koirala, the Nepali Congress general secretary, at a forum organized by the Reporter’s Club.

Was it a remark made at the spur of the moment, or did it have an element of truth? Not surprisingly, the statement comes just a day after Indian Ambassador to Nepal made a similar remark in Pokhara. The Maoists are said to be receiving support from the United Liberation Front of Assam (Assam) and Maoists in Andhra Pradesh. If this is the case, the insurgency could linger on for a long time to come.

The Maoist insurgency that has hit more than 20 of the country’s 75 districts has claimed more than 1,400 lives in the past four years.

The government has made a number of overtures to the Maoists, but to no avail. To build the minimum environment for the talks, as demanded by the Maoists, the government released more than 150 of them from prison, but there has been no change in the attitude of the Maoists, Koirala told the forum.

Only the week before, former Prime Minister Sher Bahadur Deuba in an open appeal called on the Maoist leadership to end all violence and begin a dialogue.

Meanwhile, the government is going ahead with its plans for a well armed police force to combat the insurgents. Ads have been placed for the recruitment of 100 police inspectors and 250 sub-inspectors.

The Maoist insurgency is no longer just a local matter with concerns growing beyond Nepal’s borders, as was evident from questions fielded on the issue to Prime Minister Girija Prasad Koirala during an interview on CNN last week.

A Project Is Slaughtered

By Our Correspondent

The Kathmandu Metropolitan City (KMC) has not scrapped its plans to construct an animal slaughter house at Hyumat Tole near Teku despite strong protests from the local residents. KMC Mayor Keshav Sthapit was unable to lay the foundation stone of the proposed slaughter house twice because local residents would not let him do so.

To be constructed under its private sector participation programme, the KMC has handed over the proposed slaughter house area, lying on the banks of the Bishnumati River, to a private party for 15 years under a build, operate and transfer (BOT) system. Around Rs. 12.5 million is estimated to be spent on the construction of the slaughter house where over 100 buffaloes will be slaughtered everyday. KMC is to receive around Rs. 3.5 million every year from the operating party.

Anjan Joshi, engineer at the Public Works Department of KMC, said efforts are underway to convince the local people of Hyumat that the slaughter house benefits all.

According to Joshi, at present about 40 buffaloes are being slaughtered daily in the proposed construction site.

The local people’s only concern is that the slaughter house would further lead to the deterioration of the local environment once it is built. In fact, they argue that Bishnumati is already heavily polluted and the slaughter house would only add to the woes.

But Joshi argues that the construction of the slaughter house will help stop environmental degradation not only in the locality but also of the Bishnumati River.

"After the construction of the slaughter house, the waste water will be disposed in the river only after it is treated scientifically," Joshi said.

At present, the butchers are found using unhygienic water of the adjacent river to cleaning the carcasses and the contaminated water directly mixes with the river water. This is a grave issue as far as the further pollution of the river is concerned.

Besides, the consumers will be provided with healthier and fresher meat after the slaughter house comes into operation.

In Kathmandu, buffaloes and goats are slain without conducting any health related tests. They are also chopped in filthy open air spaces. This adversely affects the health of the people living in the vicinity area and the consumers who consume such unhygienically processed meat.

According to him, the idea of the slaughter house was conceived after conducting a scientific study regarding the health hazard and environmental impact of the haphazard killing of animals. He said that the veterinary doctors will check the health of all the buffaloes before they are slaughtered. "They will allow the meat sellers to sell meat only after it has been certified as fit for consumption. This will be helpful in delivering fresh and healthy meat to the consumers."

Doctors say that the slaying of animals at open spaces is contributing to several contagious and other diseases such as Anthrax, TB, Brucellosis, Salmonellosis, Dysentery, Amoebiasis.

They also say that the meat being consumed in Kathmandu is a health hazard as the meat sellers use of polluted water to clean and wash meat and they load it into rickshaws or tempos for delivery to the open air market for sale.

UNESCO To Inspect Heritage Sites

By Our Correspondent

The fate of Kathmandu valley’s seven world heritage sites will be decided late September after a high level team of UNESCO (United Nations Educational Scientific and Cultural Organisation) inspects them.

UNESCO during meetings held sometime back at its headquarters had demanded that some of the heritage sites of Kathmandu valley be listed as endangered ones. The reason for such listing is the indifference shown by the Nepalese government to UNESCO’s suggestions to preserve the sites according to UNESCO standards. If Nepal continues to show indifference towards their preservation, the places will be struck off as world heritage sites.

"The main objective of the visit is to inspect the single world heritage site of Kathmandu valley and discuss with the government regarding it," said an official at the Department of Archaeology.

The single world heritage site of the valley comprises seven heritage sites — Hanuman Dhoka Durbar Square, Patan Durbar Square, Bhaktapur Durbar Square, Pashupatinath, Swyambhu, Boudha and Changu Narayan.

The joint mission of UNESCO and ECOMOS had suggested Nepal look properly after heritage preservation, managerial aspects and development control in the heritage sites some years back.

"If the high level team finds any violation of the suggestions, some of the sites may be enlisted as endangered ones," the official said.

'Governments Should Be Serious Regarding Child Labour'

Satoru Tabusa, 48, a high-ranking International Labour Organisation (ILO) official, was in the capital lastLweek in connection with the South Asian Sub-regional Trade Union Workshop on Child Labour in Plantation.

He has been with the ILO since 1988, and has wide experience about the labour situation in the world. Tabusa, an M. A. in Social Studies, has been looking after the Bureau for Workers’ Activities in the Asia Pacific for seven years since 1994. He is now based in Geneva.

Despite his busy schedule while attending the Workshop organised by the ILO, he took time out to talk with K. P. Sharma of this weekly regarding the significance of the workshop and the ILO activities in the fight against child labour. Excerpts:

What is your view of the just concluded regional meet on child labour on plantations?

The regional meet on the child labour situation in South Asia could be called a crucial one since it reviewed child labour on plantations and the role trade unions could play in stopping it.

It again was fruitful since it agreed to cooperate in implementing the ILO convention and follow other forthcoming ILO programmes.

How is the ILO addressing domestic child labour worldwide despite the Organisation’s increasing activities against it?

Domestic child labour is a great threat to the ILO. It is threatening because it is inconspicuous. We have IPEC (International Programme on the Elimination of Child Labour) programmes to fight against this challenging problem. However, public awareness regarding the rights of the child is of paramount importance in combating child labour.

Does the ILO address exploitation of labourers in countries which are not members of the Organisation?

There are very few countries which are not members of the ILO. However, we have virtually no right to directly interfere in the labour situation in these countries. We provide an advisory mechanism and technical cooperation to the governments of those countries where such cases are found so that the exploitation of labour would not repeat. And we have been providing such assistance to some countries.

How does the ILO react with the countries which have signed the ILO Convention but have not practised it in real terms?

In the ILO, there is a supervisory mechanism which looks after the labour situation in the member countries. The supervising body visits the countries and finds out the real situation from various angles. The committee of experts consisting of international lawyers examines the situation in the member countries. And if it finds anything wrong it suggests and recommends to the respective governments to abide by the ILO convention. If the same type of exploitation is repeated, the ILO takes action according to ILO provisions. Meanwhile, I would like to take this opportunity to say that the ILO has made enough room for suggestions and recommendations.

Has the ILO any specific strategy for ending the worst forms of child labour within a certain time frame?

Of course! The new ILO convention 182 implemented last year has made provisions for ending the worst forms of child labour from the world. The ILO’s branch IPEC has made a policy for that.

How is the ILO planning to combat child labour in the countries where families are very poor, disinterested in education, and takes child labour as a source of income?

Though poverty is not the only reason, it can be said that it is one of the principal reasons which have been helping foster child labour. Children are considered an additional source of income for the poor families in the world.

The impact of this has been so bad that child labourers do not grow up to be healthy workers.

The ILO is thus working on a war footing to eliminate child labour from the entire world by launching income generating activities in the backward societies and providing technical and vocational training to the families so that they can generate more money without exploiting children and can educate their children.

Trafficking of children for sexual purpose or for the purpose of labour is a common problem in many parts of the world. Has the ILO any strategies in checking such a heinous activity?

No doubt! human trafficking is the worst thing that is still in existence. The ILO is very serious regarding this problem and has thus made IPEC address it in its current strategy.

IPEC is working out to fight this evil which is common mainly in the developing world.

What is the most important thing that helps stop child labour from the world?

Poverty alleviation is the most important thing. Then comes education and public awareness. Again the role of Organisations like the ILO can be crucial in stopping children from working and rehabilitating them.

Meanwhile, government policy is another very important thing that can strongly address the problem. So, governments should be serious regarding child labour. A government which does not control child labour situation in the country gives a green signal for a dark future of the country. How does a child labourer who cannot grow up to be a healthy worker contribute to the nation when his labour is sought by the country in the future?

What is the situation of child labour in South Asia?

Asia is home to almost 60 per cent of the world’s child labourers. Meanwhile, South Asia is a densely populated area in Asia where the child labour situation is alarmingly high. In this situation the responsibility falls on the governments of the South Asian countries. The governments should do their level best to stop child labour. INGOs like the ILO and other organisations are always ready to help them.

Nepal is one of the three countries which has been awarded with a pilot project by the ILO to stop child labour exploitation. How do you see this?

The five-year-long project may turn extremely fruitful for Nepal if the government implements the project well.