R&D Economic Research & Business Development
Date: September 14, 2009
Highlights
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Foreign minister Sujata Koirala has returned from her six-day visit to China, Sunday night. Talking to media after her return, Koirala claimed her visit was successful in many ways.
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Prime Minister Madhav Kumar Nepal has said if the UCPN (Maoist) party does not mend its ways the Maoist leaders are bound to face a downfall like that of Cambodia´s communist leader Pol Pot.
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Police detained nine Constituent Assembly (CA) members and over three dozen cadre aligned to UCPN (Maoist), for attempting to stage a demonstration in a restricted zone outside Singha Durbar’s south gate on Sunday morning.
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A majority of the Constituent Assembly members today said the proposed provisions regarding the judiciary would invite “totalitarian regime” in the country. A political party, which has majority in the legislature, can easily influence and control the judiciary if the proposed provisions were included in the new constitution, they argued.
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Unified CPN (Maoist) chairman Pushpa Kamal Dahal has left for Hong Kong to participate in a function to be organised by Nepali Janapragatishil Manch, Sunday night.
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Country Representative of UN High Commissioner for Human Rights in Nepal Richard Bennett on Sunday reminded Prime Minister Madhav Kumar Nepal to implement the recommendations of various human rights reports of the past.
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Water talks between Nepal and India scheduled for the first week of September was put off due to a row between two ministries formed by splitting the Ministry of Water Resources, Nagarik daily reported.
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The Nepal Electricity Authority has no immediate plan to reduce the duration of power cuts during winters when the existing hydro plants generate almost half their installed capacity due to minimum availability of water in rivers and the reservoirs.
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Minister for Energy, Dr Prakash Saran Mahat, who returned from a seven-day visit to Germany, said that the German government is going to help Nepal setup a thermal plant by the end of the year.
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Amid soaring loss in diesel supplies, Nepal Oil Corporation, state-owned oil monopolist, has lowered import of diesel. Following the latest revision in oil price for the month of September, NOC is facing a loss of Rs 4.19 per liter in diesel. 1
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Bankers have warned the chief justice that the Supreme Court’s April 27 verdict allowing release of third party guarantee for bad loans would have “far-reaching implications” on the entire banking sector.
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Ace Development Bank has signed a memorandum of understanding (MOU) with Women Entrepreneurs´ Association (WEAN) to work jointly for the empowerment of the disadvantaged and needy women through generation of self-employment opportunities.
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Nepal Investment Bank Limited (NIBL) and Yeti Airlines have joined hands to allow NIBL clients to buy tickets of Yeti Airlines online, the bank said in a statement Sunday.
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CG Finco Pvt Ltd, the principal agent of Western Union Money Transfer (WUMT) for Nepal, has partnered with International Development Bank Ltd (IDBL) to provide WUMT services through the bank.
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As inflation retained double-digit growth through the entire year from 13.1 percent in August 2008 to 11.4 in July 2009, consumers' lives have become difficult with most of their income being spent on consumption and savings seeing a decline.
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The government has mobilized its agencies like Nepal Food Corporation (NFC), Salt Trading Corporation (STC) and National Trading Ltd (NTL) - to curb the unnaturally high market price of basic consumer goods like rice, sugar, lentils and edible oils.
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"We will soon start distributing LPG in market since the gas manufacturing plant has already been established in Dhading," Urmila Shrestha, general manager of the Salt Trading Corporation, said while speaking at the 47th anniversary of the corporation.
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The Israel government has accused 16 Nepali foreign employment agencies of fleecing Nepalis in the course of sending them to Israel for jobs, a source at the Ministry of Labour and Transport Management (MoLTM) said.
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Lack of proper management of Tatopani transit route has resulted in 70 per cent trade deficit with China.
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Targeting middle and senior level executives, managers, professionals and administrators, Global Jobs is organizing a one-day workshop entitled "Improving Personal Effectiveness" on Sept. 15. Global Jobs is a Kathmandubased leading human resource consulting company.
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In an interaction here today, consumer rights defenders blamed weak government for black marketing, carteling and price hike. People do not feel there is a government to support them, they said.
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A statement issued by the Nepal Rastra Bank, highlighting overall economic activities of last year, said total trade deficit of the country reached to Rs 217.32 billion, which was 33.6 percent more than last year´s Rs 162.67 billion.
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The Nepal Stock Exchange (NEPSE) started the week on a promising note gaining 2.55 points. The index settled at 617.34 points when trading closed on Sunday. The sensitive index also increased by 0.26 point. Share transactions increased substantially on NEPSE on Sunday.
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Prime Minister Madhav Kumar Nepal on Sunday reminded UCPN (Maoist) Chairman Pushpa Kamal Dahal of favours that he had done during the insurgency days. Nepal revealed that Maoist Chairman Dahal had pleaded to him for security during their Delhi meeting, which happened when the country was under the king's direct rule.
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The verbal war between UML and Unified CPN (Maoist) leaders continued unabated on Sunday, with senior UCPN (Maoist) leader Baburam Bhattarai likening Prime Minister Madhav Kumar Nepal to a poisonous snake.
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In a bid to bring about “uniformity” and impart “standardized training” to Nepal Army (NA) recruits, the newly-appointed NA Chief Chhatraman Singh Gurung has laid emphasis on establishing an Integrated Army Training Center in the Tarai.
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The National Information Commission (NIC) is preparing to introduce a provision to allow students of Tribhuvan University (TU) to view their answer sheets if they wish to after the results are published, Annapurna Post daily reported.
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The Technical Committee under the Special Committee on Supervision, Integration and Rehabilitation of Maoist combatants has come up with a code of conduct and supervision mechanism for the management of Maoist combatants living in seven cantonments and 21 satellite camps.
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Police have seized a hoard of red sandalwood being smuggled to Tibet in Bhaktapur, on Saturday night. According to the police, more than two tons of the contraband sandalwood (5930 pieces), have been confiscated from a truck heading to Khasa from Kathmandu.
POLITICS: FM Koirala returns; claims her visit successful Foreign minister Sujata Koirala has returned from her six-day visit to China, Sunday night.
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Talking to media after her return, Koirala claimed her visit was successful in many ways. Minister Koirala said, China had agreed to provide a low-interest loan of Rs 77 billion to Nepal various development projects including hydro-electricity, regional airports, and roads in remote districts. China has also agreed to waive custom duties to 104 products produced in Nepal, Koirala said. However, both the agreements on loan as well as exemption of the custom duties are yet of officially endorsed. Koirala also said, China had invited home minister Bhim Rawal to hold talks on border security issues. Koirala met with her Chinese counterpart Yang Jeichi and the Chinese deputy Prime Minister, among other top officials. Source: www.nepalnews.com Date: September 14, 2009 Maoists might meet Pol Pot's fate: PM Prime Minister Madhav Kumar Nepal has said if the UCPN (Maoist) party does not mend its ways the Maoist leaders are bound to face a downfall like that of Cambodia´s communist leader Pol Pot. "As the Maoist party emerged as largest party within couple of years, the Maoists are behaving in a way as if they won the whole country. But if they continue the similar unruly activities, they will shortly meet the fate of communist leader Pol Pot," he said after administering oath of secrecy to the newly-elected members of CPN-UML Chitwan district chapter. Nepal came down heavily on UCPN (Maoist) Chairman Pushpa Kamal Dahal who has been criticizing the prime minister in the recent days despite that he "tried hard to bring the Maoists to peaceful politics putting his own life at risk when the former rebel Maoists were underground." He reiterated his call to the Maoists to join the coalition government. "We are ready to offer the Maoists to choose from all ministerial portfolios except the prime minister if they want to join the government," he said. He also criticized the leaders of his own party allegedly for not giving wholehearted support to the UML-led government. "Such comrades are deceiving the party by backing the Maoists who are active against the government," he said. Khanal wins Chitwan chapter
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CPN-UML district leader Krishna Khanal has been elected chairman of the party´s Chitwan district chapter. He defeated Jagannath Thapaliya in an election Sunday. Krishna Bhakta Pokharel has been elected vice-chairman, Arun Pidit Bhandari secretary and Sharada Kumal joint secretary. The party members were clearly divided into two panels -- K P Oli panel and party chairman Jhalanath Khanal panel. Krishna Khanal led the panel close to party chairman Khanal while Thapaliya represented Oli faction. Khanal faction won all the executive members in the 69-member body. As many as 493 representatives participated in the district convention. The district chapter has 4096 organized members. Prime Minister Nepal administered oath of office to the newly-elected members. PM shown black flags The prime minister Sunday inaugurated the national conference of Higher Secondary School Association Nepal (HISSAN) in Narayanghat. He arrived at the venue through a new route dodging hundreds of Maoist cadres, who were gathered at Pulchowk area to show him black flags. Despite that some Maoists managed to demonstrate against the prime minister when he arrived at the venue from another road Source: www.myrepulica.com Date: 09/14/2009 CA members detained Police detained nine Constituent Assembly (CA) members and over three dozen cadre aligned to UCPN (Maoist), for attempting to stage a demonstration in a restricted zone outside Singha Durbar’s south gate on Sunday morning. The police said they were forced to detain the agitators, including lawmakers, as they had tried to enter the restricted area, where the local administration has imposed a ban. The detention took place one hour before a CA meeting. Policemen, who were deployed in the area, were said to be unaware that some of the detained agitators were top-ranking CA members, who are involved in the drafting of the new constitution. The detained CA members remained in custody for nearly two hours, awaiting identification, before they were allowed to walk free. The members, who insisted on remaining in police custody until identified, were shouing slogans against the present government. Dalit Mukti Morcha, member of Nepal’s Maoist party, staged the demonstration, demanding that the government restore “civilian supremacy” and ensure special rights to the backward communities at the earliest.
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Those detained have been identified as Tilak Pariyar of Banke, Santoshi B.K. of Rolpa, Durga Devi Paswan of Dhanusha, Hem Kumari Sunuwar of Lamjung, Tej Bahadur Mijar of Kavre, Padam Lal B.K. of Ilam, Gopi Acharya of Morang, Binod Pahadi of Rupandehi and Hari Tripathi of Dhangadhi. All the detained CA members are from Dalit community, one of the underprivileged communities in the country. Immediately after their release, the Metropolitan Police called a press conference, and made it clear that, “the CA members’ detentions took place owing to a case of mistaken identity.” Source: www.kantipuronline.com Date: September 13, 2009
Lawmakers against judiciary revamp A majority of the Constituent Assembly members today said the proposed provisions regarding the judiciary would invite “totalitarian regime” in the country. A political party, which has majority in the legislature, can easily influence and control the judiciary if the proposed provisions were included in the new constitution, they argued. The CA members started deliberations on the report of the CA Committee on Judiciary today. Lawmakers of the Unified CPN-Maoist and a few Madhesi parties spoke in favour of the report while Nepali Congress, CPN-UML and other parties said the proposed provisions were against democratic norms and values. Many controversial issues, including reappointment of judges once the new constitution is promulgated, appointing judges from central and provincial legislature, bringing the Chief Justice from outside the court and giving the legislature the right to interpret constitution on political and some other issues, have been passed with the consent of Madhesi lawmakers to Maoist-backed issues in the CA Committee on Judiciary. Agni Prasad Sapkota of UCPN-M claimed that the proposed provisions were not the copy of traditional communist system, rather they embodied scientific system. He said the UCPN-M wanted to bring the judiciary under the control of people, a provision not in existence at present. Lawmakers of NC and UML, however, said since the legislature was the body represented by political parties, its control of the judiciary did not mean people’s control but the control of parties. “In such a situation, the judiciary cannot be impartial and independent.” They also said it was against the principle of separation of powers, which is a must for democracy. Amod Prasad Upadhaya, an NC lawmaker, said the proposed provisions were nowhere in practice except in some communist and autocratic countries. “Judiciary is accountable to constitution and not the political parties.”
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Ram Nath Dhakal of UML said the proposed provisions were against constitutional supremacy and federal principle. “Is it people’s supremacy if the legislature is given the three rights — promulgating law, interpreting it and hearing the complaints?” he questioned.Surita Kumari Sah of MJF and Arabinda Sah of Tarai Madhes Democratic Party supported the proposed provisions stating that they had opened up opportunities to make the appointments of judges more inclusive. Source: The Himalayan Times Date: 09/14/2009
Maoist chairman Dahal leaves for Hong Kong Unified CPN (Maoist) chairman Pushpa Kamal Dahal has left for Hong Kong to participate in a function to be organised by Nepali Janapragatishil Manch, Sunday night. Dahal left for Hong Kong at about 10.30 pm, Sunday, with his wife Seeta and the International Department In-charge of the party Krishna Bahadur Mahara. Dahal and Mahara will train party cadres and supporters based in Hong Kong on the decisions taken by the recent central committee meeting and instruct them for future activities to be launched. Dahal will stay in Hong Kong for three days. Earlier last month, Dahal had gone to the UK to train his party supporters. Source: www.nepalnews.com Date: September 14, 2009
POLICY: UN: Execute recommendations Country Representative of UN High Commissioner for Human Rights in Nepal Richard Bennett on Sunday reminded Prime Minister Madhav Kumar Nepal to implement the recommendations of various human rights reports of the past. During a meeting on Sunday, Bennett stressed that implementing the investigative reports on arbitrary detention, torture and disappearances at Maharajgunj Nepal Army barracks, Kathmandu in 2003-2004 and Conflict Related Disappearances in Bardiya2008, among others, were crucial to promoting human rights in Nepal. He reminded Nepal to establish the Commission of Inquiry on Disappearances and the Truth and Reconciliation Commission. He also recommended early ratification of the Convention on the Rights of Persons with Disabilities, which the Cabinet has already approved. 7
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In response, Prime Minister Nepal said that implementing human rights obligations was crucial to the government effort to end impunity. Nepal requested OHCHR and other human rights bodies to draw his attention, particularly to egregious cases to make sure those human rights issues come under government priority. Bennett appreciated Nepal's recent announcement of a campaign to eliminate gender based violence and welcomed this approach to strengthen the law and the human rights division within his Office. The OHCHR delegation, which also included Deputy Representative, Jyoti Sanghera, discussed a range of human rights issues in the context of the UMl-led government's 100 days in office and the prime minister's upcoming visit to the UN General Assembly meeting in New York. “I welcome the prime minister's assurance that he will take concrete steps to address serious human rights violations to end impunity,” said Bennett in a press statement. “The cooperation of all parties, through the Legislature-Parliament, to move forward on key human rights commitments essential to the peace process is strongly encouraged by OHCHR-Nepal.” Source: www.kantipuronline.com Date: September 14, 2009 Nepal-India water talks put off Water talks between Nepal and India scheduled for the first week of September was put off due to a row between two ministries formed by splitting the Ministry of Water Resources, Nagarik daily reported. The talks could not take place as ministers and secretaries from both, energy and irrigation, ministries wanted to take part. There is one minister and one secretary looking after both the issues of irrigation and energy in India. It is not appropriate to send two ministers and two secretaries to hold talks with one minister and one secretary, a ministry official said. Both ministries claimed they should be allowed to participate in the talks as there are more issues pertaining to their ministries. After the inter-ministerial dispute could not be resolved in time, Nepal requested India through the foreign ministry to postpone the talks for the last week of October. The Ministry of Water Resources was split into energy ministry and irrigation ministry by the present coalition government to allocate more ministers in the cabinet. Prakash Sharan Mahat and Balkrishna Khand, both of Nepali Congress, are the ministers for energy and irrigation, respectively. Source: www.nepalnews.com Date: September 14, 2009
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Winter to witness power cut The Nepal Electricity Authority has no immediate plan to reduce the duration of power cuts during winters when the existing hydro plants generate almost half their installed capacity due to minimum availability of water in rivers and the reservoirs. The NEA has been generating 690 MW of energy, including the energy from thermal plants. But its capacity reduces to almost half of its installed capacity during the winter season. Jivendra Jha, Managing Director of the NEA, admitted that NEA had no effective plan to deal with daily power cuts during the dry season in a meeting called by the PAC. The parliamentary body had called a meeting of government-owned public enterprises to dwell on their financial health and service delivery. PAC members had inquired about the NEA’s plan to reduce the power cuts during the winter season. Last year, the household consumers and the industrial sector had to face up to 18-hour daily power cuts after the swollen Koshi River uprooted transmission lines supplying 60 MW of electricity from India.The lawmakers expressed dissatisfaction over the slow pace of distributing Compact Florescent Lamps to the consumers as envisaged by the Ministry of Energy last year. The NEA has started distributing the lamps only in the Kathmandu Valley. Dr Prakash Chandra Lohani, one of the members of the PAC, said the nation could save at least 38 MW of electricity if CFLs were distributed to the NEA consumers across the country. Jha said Nepal would be able to import larger amount of electricity from India once 400 KV Dhalkebar-Muzzaffarpur cross border transmission lines were readied this year. Jha said the NEA was suffering a cumulated loss of Rs. 12.33 billion due to the lack of time-bound adjustment of electricity tariff (no tariff has been adjusted for the last eight years), high interest rate of the capital loans provided by the government and high rate of energy leakages (around 25 per cent). He said the NEA was not in a position to independently mobilise resources for the construction of hydro plants that are in the pipeline. It has a long-term liability of Rs 58 billion to the government. Source: The Himalayan Times Date: 09/14/2009 Germany to help set up thermal plant: Mahat Minister for Energy, Dr Prakash Saran Mahat, who returned from a seven-day visit to Germany, said that the German government is going to help Nepal set-up a thermal plant by the end of the year. While speaking to media persons at Tribhuwan International Airport upon his arrival Monday morning, Mahat said, "As requested by Nepal, the German government has
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given a nod to assist in setting up a thermal plant." He said that the Ministry for Energy will submit a proposal to this effect to the German government shortly. Stating that thermal plant is "not an attractive option" for Nepal as it is an expensive venture; Mahat said that foreign assistance is a must to set up thermal plant in the country. He also informed that the private sector in Germany is interested to invest in up to 100 MW in Nepal´s hydro-power sector. Pointing at the already existing German investment in Nepal´s Middle Marsyangdi Hydropower Project in Tanahu District, Dr Mahat said that "more cooperation was sought" from German private sector during his visit. Source: www.myrepublica.com Date: September 14, 2009 NOC brings down diesel imports Amid soaring loss in diesel supplies, Nepal Oil Corporation, state-owned oil monopolist, has lowered import of diesel. Following the latest revision in oil price for the month of September, NOC is facing a loss of Rs 4.19 per liter in diesel. A highly placed source at the NOC said the oil monopolist decided to bring down diesel import to avoid further loss in trading of diesel. “Despite the decrease in diesel import, domestic market would not have to face shortage for the time being as we have sufficient stock,” the source added. The source further added that the NOC would supply fuel during the Dashain and Tihar festivals from its stock, in line with the government commitment of smooth supply of essential commodities during the festive season. Following the revision of petroleum prices by Indian Oil, sole supplier to Nepal, for the month of September, the NOC has been suffering loss in diesel and Liquefied Petroleum Gas (LPG). NOC is suffering a loss of Rs 87.24 per cylinder of LPG. However, the NOC is enjoying a profit of Rs 1.80, Rs 3.22 and Rs 13 in per liter of petrol, kerosene and Air Turbine Fuel (ATF) respectively. Crude oil is selling for $73 per barrel in international market. Petroleum dealers said there had been no obstacle in the supplies of fuel, including diesel, due to the NOC´s latest decision. “We are receiving smooth supply of diesel and kerosene,” said Saroj Pandey. The NOC source said monthly consumption of diesel hovers around 45,000 KL across the country and the NOC has 55,000 KL in its stock. NOC is not reducing the supplies of petrol as it is making profit by selling petrol. Currently, NOC is importing 12,000 KL of petrol, 7,000 KL of ATF and 12,000 tons of LPG every month. NOC had enjoyed huge profit when crude prices declined from $147 barrel to $40 in international market. It was also setting aside Rs 500 million per month to repay due to IOC for the last seven months.
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Following revision in prices, the NOC officials said they were expecting a loss of Rs 190 million in September. Source: www.myrepublica.com Date: 09/14/2009 BANKING:
Bankers warn CJ of implications Bankers have warned the chief justice that the Supreme Court’s April 27 verdict allowing release of third party guarantee for bad loans would have “far-reaching implications” on the entire banking sector. Nepal Bankers’ Association (NBA) recently met Chief Justice Min Bahadur Rayamajhee to brief him on the implications of the verdict on bad loan recovery. The Association has also drawn the attention of the parliamentary Public Accounts Committee (PAC). A joint bench comprising justices Tahir Ali Ansari and Prakash Wosti had given the verdict that third party guarantor Sangita Tripathi’s land acquired by Lumbini Bank for the borrower’s failure to repay loan should be returned after Tripathi paid the original guarantee amount to the bank. Tripathi’s 8-aana land at Maharajgunj, Kathmandu, which had served as guarantee in a loan deal on Feb. 15, 2001 was valued at Rs. 2.4 million. She took back her land as per the court verdict after paying the amount to the bank though the land price had soared by many times the original valuation. The borrower, Hetauda-based Harati Wire Industries, which has now collapsed, is yet to pay back an outstanding loan of Rs. 90 million according to 2005 valuation. The government has blacklisted its owner Bhisma Man Shrestha. Bankers say if the verdict is established as precedence, it will open the door for the return of many non-ban-king assets—land and properties acquired by banks for nonpayment of loans—to borrowers. The court’s verdict is based on the notion that the third party should not be made liable for unlimited guarantee given the fixed value of third party guarantee during loan deals. On the other hand, only Harati had been made liable for payment of outstanding loans when the bank filed a case at the Debt Recovery Tribunal. Thirdly, the bank acquired the land at an undervalued price against its own valuation. The bank had fixed the valuation amount at Rs. 4.8 million before acquisition in May 2005. But, the bank acquired it at Rs. 3.5 million. Tripathi’s lawyer Uddhav Kumar K.C. said the verdict had barred banks from acquiring third party guarantor’s property in an “unjust manner”.
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According to NBA, the Land Revenue Office transferred the land ownership to Tripathi without informing the bank. But Land Revenue Office Chief Prem Khapung said they didn’t need to inform the bank regarding implementation of the court order. Source: www.kantipuronline.com Date: September 14, 2009 Ace, WEAN sign MOU Ace Development Bank has signed a memorandum of understanding (MOU) with Women Entrepreneurs´ Association (WEAN) to work jointly for the empowerment of the disadvantaged and needy women through generation of self-employment opportunities. According to a press release issued by the association on Sunday, the MOU was signed between Siddhant Raj Pandey, CEO of the development bank and Rita Bhandary, president of the association. As per the agreement, Ace will provide trainings and access to finance for implementation of business plans through WEAN to the needy in order to facilitate their financial needs. Ace has also agreed to provide grants worth Rs 100,000 to WEAN training fund, said the release. Source: www.myrepublica.com Date: September 13, 2009 NIBL, Yeti sign online ticket deal Nepal Investment Bank Limited (NIBL) and Yeti Airlines have joined hands to allow NIBL clients to buy tickets of Yeti Airlines online, the bank said in a statement Sunday. The service, available to NIBL account holders with NIBL e-banking services, is also available on Yeti Airlines´ website -- www.yetiairlines.com -- and targets the bank´s over 270,000 customer base, it said. The website will provide information on flights and rates available on a given date and once the purchase is confirmed on the client´s e-Banking account, will provide the customer with the confirmation code that can be used at the airport. “The partnership will help the customers to enjoy the ultimate banking experience by providing easier and convenient option for ticket purchase through secured website environment. It is also expected to propel the efficiency level of the distribution channel and reduce operational costs for the airline,” the statement reads. NIBL also said that it had invested heavily on using technology for making payments and was looking towards using the system through mobile phones. The bank has 31 branches and an ATM network of over 58 kiosks. Source: www.myrepublica.com 12
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Date: September 13, 2009
CG FINCO partners IDBL CG Finco Pvt Ltd, the principal agent of Western Union Money Transfer (WUMT) for Nepal, has partnered with International Development Bank Ltd (IDBL) to provide WUMT services through the bank. According to a statement issued Sunday, CG Finco General Manager Ashish Sharma and IDBL CEO Raja Ram Khadka inked the deal. “This liaison will redefine the definition of remittance business sector of Nepal. Moreover, IDBL has really increased the profile of CG Finco with this new business partnership,� the statement quotes Sharma as saying. CG Finco has a network of over 650 agent partner locations. Source: www.kantipuronline.com Date: September 14, 2009
BUSINESS & ECONOMY: Double-digit inflation bleeds Nepalis If consumers were paying Rs. 40 for a kilogram of sugar on average in the fiscal year 2007/08, they paid Rs. 60 in the last fiscal year 2008/09. Consumers who paid Rs. 1000 for 30 kg of rice in the fiscal year had to pay Rs. 172 in the last fiscal year. Sugar and related products witnessed a price rise of 49.9 percent whereas rice saw a price rise of 14.3 percent, according to the annual macro-economic situation of the country in the fiscal year 2008/09 made public by Nepal Rastra Bank on Sunday. As inflation retained double-digit growth through the entire year from 13.1 percent in August 2008 to 11.4 in July 2009, consumers' lives have become difficult with most of their income being spent on consumption and savings seeing a decline. With expenditure on consumption reaching as high as 92 percent, savings remained at 8 percent of the gross domestic product. Senior economist Bishwombher Pyakuryal said that continued double-digit inflation would have an impact on food security and could lead to under nutrition as people didn't have enough money to spend on good foods. Although salary and wage rates also increased by 15.3 percent, Pyakuryal said that it did not make any difference to the overall living standard of living given that wages had not gone up in the informal sector. The high inflation in foods and beverage category pushed the overall inflation up although non-food items also saw a significant rise in inflation. Besides sugar and
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rice, prices of pulses and meat products went up by 25 and 23.4 percent respectively in the last fiscal year. The prices of oil and ghee went up by 16.3 percent and milk and milk products by 15 percent. Restaurant goers had to spend 18.5 percent more money for meals. Among non-food items, prices of transport and equipment saw the highest rise of 15.8 percent followed by tobacco and related products with 15.8 percent. The price rise of non-food items remained at 9.5 percent in the last fiscal year. Inflation (2008/09) Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul
13.1pc 13.5pc 14.1pc 14.5pc 14.1pc 14.4pc 13.7pc 13.1pc 11.9pc 12.9pc 12.3pc 11.4pc
Remittanceup47pc Nepal saw a huge 47 percent growth in workers' remittances in 2008/09. According to Nepal Rastra Bank (NRB) annual report, the country’s migrant workers sent back Rs. 209.69 billion during the last fiscal year. The growth of remittances in 2007/08 was 42.5 percent. Remittances worth Rs. 142.7 billion were sent by workers in 2007/08. Tourist arrivals down Tourist arrivals via air declined marginally by 0.9 percent in the last fiscal year. The latest figures of the central bank show that 364,829 tourists visited Nepal in 2008/09 compared to 368,256 in the previous year. Nepal Rastra Bank figures reveal tourist arrivals from third countries as well as from India both declined in the last fiscal year. Expansion of financial system A total of 13 new banks, insurance and financial institutions were added in the country's financial system in the last fiscal year. One commercial bank, five development banks, three micro-finance institutions and four insurance companies were established in 2008/09. Altogether 194 new branches were added by the commercial banks in the last fiscal year. FDI down by 36.4pc Foreign direct investment (FDI) declined by 36.4 percent in the last fiscal year. Though the number of joint venture projects increased by 8.5 percent to 230, foreign
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investment decreased by 36.4 percent to Rs. 6245 million in 2008/09. Rs. 9811 million worth FDI was committed in the fiscal year 2007/08. Exports up 13.5pc In 2008/09, exports went up by 13.5 percent as compared to the marginal decline of 0.2 percent in the previous fiscal year. Exports to India and third countries expanded by 6.2 percent and 26.9 percent respectively. In 2008/09, total imports soared by 28.2 percent in comparison to an increase of 14 percent in the previous year. Of the total imports, imports from India increased by 15.1 percent and imports from other countries surged by 51.7 percent. Bank deposits surge Expansion of commercial banks and higher remittance inflows led to significant growth of bank deposits in the last fiscal year. The deposits of commercial banks have increased by Rs. 128.3 billion to Rs. 549.8 billion, a growth of 30.4 percent in the last fiscal year. Of the total deposits, savings and time deposits increased by 22.9 percent and 41.8 percent respectively. Source: www.kantipuronline.com Date: September 14, 2009 General consumers will not suffer due to scarcity in market, claims govt The government has mobilized its agencies like Nepal Food Corporation (NFC), Salt Trading Corporation (STC) and National Trading Ltd (NTL) - to curb the unnaturally high market price of basic consumer goods like rice, sugar, lentils and edible oils. Saroj Nidhi Tiwari, Bagmati Zonal Chief, STC, said that his organisation has launched a special festival campaign for Dashain since Friday providing 100 quintals of sugar per day to association retail shops. He also informed that STC is selling sugar at Rs 53 per kg through its 265 dealers in Kathmandu valley since last month. “We have sufficient sugar stock for Dashain, Tihar and Chhath.,” he further justified. Mukunda Dhungel, Nepal Oil Corporation (NOC) spokesperson, also said the NOC has sufficient fuel stock for Dashain. “We even have enough stock of LPG. So, there is no need to worry about it,” he claimed. Consumer rights activists however claimed that the rampant black marketing, carteling and price hike are the outcome of inefficient and feeble government mechanisms. “There is palpable feeling among the people that the country lacks government,” they further argued. “On the one hand, consumers are reeling under the scarcity of food items on the eve of festivals. On the other, general people are not in position to afford essential goods
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like sugar, lentils and edible oils,� said Harendra Bahadur Shrestha, president of Consumer Forum Nepal (NECOFO). He also said that the government intervention mechanism had failed to curb the unnatural price hike. Prices of these commodities have hiked by 60 percent since May this year. Source: www.nepalnews.com Date: September 14, 2009 Salt Trading to venture into trade of LPG Salt Trading Corporation will soon make its venture into the trade of Liquefied Petroleum Gas (LPG). "We will soon start distributing LPG in market since the gas manufacturing plant has already been established in Dhading," Urmila Shrestha, general manager of the corporation, said while speaking at the 47th anniversary of Salt Trading Corporation. Shrestha argued that the decision of the corporation to diversify itself into LPG sector will help in addressing myriad problems besetting the supply of essential goods across the country. Speaking on the same occasion, Saroj Kumar Yadav, State Minister for Commerce and Supply, said that the government is planning to make state nd semi-state owned entities efficient and vibrant to ensure smooth supply of essential products and services to general consumers. "Private sector always tends to create obstacles in supply of basic commodities with petty business motives. So, the concept of public/private partnership must be effectively adopted to ward off black-marketing, artificial shortages and hoarding of basic commodities by unscrupulous traders," he further said. Source: www.nepalnews.com Date: September 13, 2009 Israel finds 16 firms at fault The Israel government has accused 16 Nepali foreign employment agencies of fleecing Nepalis in the course of sending them to Israel for jobs, a source at the Ministry of Labour and Transport Management (MoLTM) said. But the names of some agencies, which figure in the list that Israel handed over to the Nepali Embassy there, do not match with the list of the agencies entitled to send Nepalis abroad for jobs, the source said. "We are conducting a study to this regard."
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During Labour Minister Aftab Alam's trip to the country, Israel government had handed over the list of six foreign employment agencies involved in milking Israelbound Nepali migrant workers. "The six agencies figure in the new list as well," said the source. "We will be receiving the name list formally very soon," he said. The Israel government submitted the list to the embassy after conducting a survey among Nepali migrant workers. The foreign employment agencies are accused of charging Rs. 500,000 to Rs. 600,000 as service charge from Israel-bound female migrant workers and up to Rs. 1 million from male workers. "Israel has put pressure on the government for effective implementation of the Foreign Employment Act," said another MoLTM official. As per the Act, any agency that sends human resources to Israel can charge the amount equal to first six months' salary that an individual earns in Israel. Israel allows each agency to charge up to US$ 2,500 per person. Israel is one of the lucrative foreign destinations among Nepali female migrant workers, where they can earn monthly average salary of Rs. 60,000 each. The country had stopped issuing fresh visas to Nepali workers since April 23, 2009 citing exorbitant service charges, lack of command of local languages and other professional skills. It had cancelled the visas of 450 individuals, who were waiting to leave for Israel. Source: www.kantipuronline.com Date: September 14, 2009 Tatopani transit point hell for traders Lack of proper management of Tatopani transit route has resulted in 70 per cent trade deficit with China. At an interaction programme organised by Nepal-China Chamber of Commerce and Industry and Sindhupalchowk Chamber of Commerce, stakeholders pointed out that repeated attempts made to make the government and business entrepreneurs aware of the present trade scenario at the transit point have been in vain. Speaking during the programme, NCCCI president Rajesh Kaji Shrestha said, “It is difficult to ferry goods from the customs at Tatopani. If the transit route were easily accessible, there would have been more trade opportunities with China and India. We are urging the government to make the export from Tatopani transit point zero tariff so as to create more movement of goods through this point.� Traders from Tatopani too urged for valuation of Chinese goods imported through the transit point. According to them, valuation of Chinese goods is quite difficult. The valuation and billing of Chinese goods should be made according to WTO norms. Informing about the present scenario of the Tatopani transit route, Sindhupalchowk
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Chamber of Commerce president Rajendra Kumar Shrestha said the Tatopani transit point suffers from a number of shortcomings. He said, “Currently, there are only 20 25 trucks and containers arriving at the point. Earlier, the number was more than 80. Export of Nepali goods has declined and the custom charges for flour, ghee and other exportable eats are quite high.” The export of Nepali Handicraft is declining per day. “Compared to other transit points, here the import volume is high but still the custom charges are very high,” NCCCI president Shrestha said adding that the custom charge for cotton cloth at other transit points is five per cent while here the charge is 15 per cent. He also spoke about the poor infrastructure of the Tatopani transit point. According to him, due to lack of sufficient manpower at the transit point there is no timely goods checking or investigation. The parking yard is too small and the transit point also lacks enough budget for infrastructure development. The parking yard has space for 50-60 vehicles only, said Shrestha. “The Chinese government has assured of the construction of a dry port. Therefore, our own government too must move forward and show its concern,” said Shrestha. Source: The Himalayan Times Date: 09/14/2009 Global Jobs to hold workshop for professionals Targeting middle and senior level executives, managers, professionals and administrators, Global Jobs is organizing a one-day workshop entitled "Improving Personal Effectiveness" on Sept. 15. Global Jobs is a Kathmandu-based leading human resource consulting company. It is said that the workshop will focus on improving personal and managerial effectiveness, enhancing communication skills, building leadership qualities, effective decision making and proper time management and stress management, among others. Similarly, the company is also holding a half-day seminar entitled "High Performance Leadership" on Sept. 16. This seminar will be participated in by CEOs, managing directors and senior-level executives. Global Jobs expects around 100 executives to take part in the workshop. Both workshops will be conducted by internationally acclaimed corporate trainer Ajay Agarwal from New Delhi, India. The programme has been scheduled at the request of banks, finance companies and corporate houses. The company has been providing various customized training programmes as per its clients' requirements. Source: www.nepalnews.com Date: September 14, 2009
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Market topsy-turvy, government effete In an interaction here today, consumer rights defenders blamed weak government for black marketing, carteling and price hike. People do not feel there is a government to support them, they said. Consumers are facing scarcity of food items on the eve of festivals, said Harendra Bahadur Shrestha, president of Consumer Forum Nepal (NECOFO). “Prices of sugar, lentils and edible oils are beyond the capacity of people,” he said adding the government intervention mechanism had failed to curb the unnatural price hike. Prices of these commodities have hiked by 60 per cent since May this year. The government has mobilized its agencies — Nepal Food Corporation (NFC), Salt Trading Corporation (STC) and National Trading Ltd (NTL) — to correct the market price of basic consumer goods like rice, sugar, lentils and edible oils. STC is selling sugar at Rs 53 per kg through its 265 dealers in Kathmandu valley since last month. NTL is also supplying sugar at the same price. STC has launched a special festival campaign for Dashain since Friday providing 100 quintals of sugar per day to association retail shops. “We have sufficient sugar stock for Dashain, Tihar and Chhath,” said Saroj Nidhi Tiwari, Bagmati zonal chief. STC and NLT are importing 50,000 MT sugar for the fiscal year 2009-10. Likewise, STC and NFC are started selling lentils at subsidized rates for the festivals. Each has imported 5,000 MT of lentils from the Indian market. NTL is giving 10 per cent discount on home appliances like gas oven, fan and water pumps during festivals. Nepal Oil Corporation (NOC) has sufficient fuel stock for Dashain, said Mukunda Dhungel, NOC spokesperson. According to him, NOC’s stock of kerosene is sufficient for two months while its stock is sufficient for one month. The average consumption of kerosene is 4,000 KL per month. NOC’s petrol stock will last only a week, he added. “NOC has maintained a good stock of LPG and there is nothing to worry about,” said Dhungel. Nepal Police (NP) has made special security arrangements for Dashain. “NP has designed a special security plan for Dashain,” said Kathmandu Metropolitan Police Commissioner Milan Basnet. He added that NP needs the support of the people to implement the plan and sought suggestions for improving the security plan. Source: The Himalayan Times Date: 09/14/2009
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MARKET: Trade deficit surpasses remittance income Remittance up by 47pc to Rs 209.7b Nepal´s remittance receipts soared to a record 47 percent to Rs 209.7 billion last year, but with a worrisome rise in trade deficit that upset entire remittance income. A statement issued by the Nepal Rastra Bank, highlighting overall economic activities of last year, said total trade deficit of the country reached to Rs 217.32 billion, which was 33.6 percent more than last year´s Rs 162.67 billion. Despite a healthy growth of 13.5 percent in exports, a remarkable rise of 28.2 percent rise in imports, mainly from India, propelled the trade deficit to touch 31.5 percent of the GDP. However, the share of India in Nepal´s total foreign trade came down to 58.2 percent from previous year´s 64.3 percent, according to the report. During the period, the current account of the balance of payment (BOP) recorded a massive surplus of Rs 41.4 billion compared to a surplus of Rs 23.7 billion recorded last year. "The significant current account surplus last year was largely attributed to the rise of 36.5 percent in net transfers," stated the report. As a result, the overall BOP posted a significant surplus of Rs 37.7 billion in 2008/09, compared to a lower surplus of Rs 29.7 billion in the preceding year, while gross foreign exchange reserves stood at Rs 280 billion, a rise of 31.7 percent compared to last year´s figures. "The current level of reserves is adequate for financing merchandise imports of 11.8 months, and merchandise and service imports of 9.7 months," according to the report. The annual average consumer inflation, during the period, increased to 13.2 percent, compared to an increase of 7.7 percent recorded a year earlier. The annual average wholesale price index increased by 12.8 percent in 2008/09, as compared to a rise of 9.1 percent in the previous year. Propelled by the increase in the salary of civil servants in mid-September last year, the annual average salary and wage rate index rose by 15.3 percent in 2008/09. It had increased by 9.7 percent in the previous year. About the last year´s fiscal situation, the report highlighted that overall budget deficit remained at Rs 26.2 billion, which was 2.7 percent of the GDP, while the domestic financing of the budget deficit through the issuance of securities amounted to Rs 18.4 billion, which accounted for 2.9 percent of GDP. Despite a low economic growth of 3.9 percent, the volume of domestic credit increased by 24.7 percent in 2008/09 compared to a growth of 21.3 percent a year ago. Source: www.myrepublica.com Date: 09/14/2009
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NEPSE inches up 2.55pt The Nepal Stock Exchange (NEPSE) started the week on a promising note gaining 2.55 points. The index settled at 617.34 points when trading closed on Sunday. The sensitive index also increased by 0.26 point. Share transactions increased substantially on NEPSE on Sunday. Total transactions reached Rs. 149.39 million with 918,185 units of shares being traded. Shares of 71 companies changed hands on Sunday. The NEPSE sub-indices saw a mixed reaction with three of them increasing and three witnessing a fall. The others sector was the highest gainer increasing by 8.22 points followed by the hydropower sector which went up by 6.45 points. Similarly, the development bank sector was the biggest loser on the floor as it shed 4.58 points followed by the finance sector and the insurance sector which fell by 1.14 points and 0.52 point respectively. Among the 22 commercial banks whose shares were traded on NEPSE on Sunday, Standard Chartered Bank posted the biggest growth with its stock rising 50 points while Everest Bank lost the most on the trading floor by shedding 41 points. Similarly, among the 15 development banks, Clean Energy Development Bank and Excel Development Bank witnessed the highest increase of 6 points each while Infrastructure Development Bank lost 20 points. Among the 27 finance companies, Goodwill Finance's promoter share was the highest gainer with an increase of 360 points in its share price. IME Financial Institution was the biggest loser shedding 69 points. The top five winners on NEPSE were Lumbini Bank with a 9.79 percent rise in its stock price followed by Prabhu Finance, Reliable Finance, Everest Finance and Standard Chartered Bank. Source: www.kantipuronline.com Date: September 14, 2009
GENERAL: Verbal war: Nepal reminds Dahal of favours BHARATPUR, September 14 - Prime Minister Madhav Kumar Nepal on Sunday reminded UCPN (Maoist) Chairman Pushpa Kamal Dahal of favours that he had done during the insurgency days. Nepal revealed that Maoist Chairman Dahal had pleaded to him for security during their Delhi meeting, which happened when the country was under the king's direct rule. “He had held my hand and asked me to save his life from national and foreign forces, saying I was the only trustworthy person and only I could save him,� the prime 21
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minister said at the seventh convention of the UML's Chitwan chapter at Bharatpur on Sunday. “I told Dahal to rest assured and that things would turn up just fine. His party came this far and now he seems to have forgotten all favours,” the prime minister lamented. “As the prime minister, Dahal visited me many times and sought help and I did all I could. Now he is criticizing me nonstop.” Nepal said Maoist cadre would leave him if the Maoist chairman did not change his attitude. Earlier in the morning, Maoist activists gathered in various parts of Narayangarh to prevent the prime minister from taking part in a programme. Nepal had to spend nearly an hour at the Bharatpur airport while security personnel planned a detour for his convey. Source: www.kantipuronline.com Date: September 14, 2009 Bhattarai links PM to poisonous snake DOTI: The verbal war between UML and Unified CPN (Maoist) leaders continued unabated on Sunday, with senior UCPN (Maoist) leader Baburam Bhattarai likening Prime Minister Madhav Kumar Nepal to a poisonous snake. “We brought him (Nepal) to the parliament, thinking that he would provide ideological support in the constitution-drafting process. But he turned out to be a snake in the grass,” Bhattarai said in Doti on Sunday. The Maoist leader said he had never imagined that a person, who had Constituent Assembly elections from two constituencies, would become prime minister. “He became the prime minister as he lacked morality. People could get rid of venomous snake whenever they want,” Bhattarai went on. He warned that the country could plunge into a grave crisis if the issues of civilian supremacy and the formation of a national unity government were not sorted out. Source: www.kantipuronline.com Date: September 14, 2009
NA to set up integrated training center in Tarai In a bid to bring about “uniformity” and impart “standardized training” to Nepal Army (NA) recruits, the newly-appointed NA Chief Chhatraman Singh Gurung has laid emphasis on establishing an Integrated Army Training Center in the Tarai. “The army chief has proposed such a center aimed at imparting specialized and enhanced training for our men,” a high-placed NA source told myrepublica.com. The proposed center would be coordinated by the center.
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The Training Cell of the DGMT (Director General of Military Training) will be responsible for the overall planning, budgeting and implementation of the proposal. The DGMT is currently working out phase-wise financial breakdown of the center. General Gurung had stressed on establishing such a center during his internal briefing to the NA staff recently. There are currently five training academies run by the NA. At Khairipati, basic military training is imparted to personnel between the ranks of lieutenant and captain. Second, the Young Officers´ Course and Company Command Course are run at Nagarkot Academy. Similarly, at Shivapuri Staff College, Battalion Commanders´ Course is conducted, after the completion of which the majors are promoted as colonels. Besides, two warfare training schools are functional at Amlekhgunj, Bara, and Jomsom, Mustang. At Amlekhgunj, the NA imparts training in jungle warfare, while at Jomsom, it has the MWS (Mountain Warfare School). In addition, it also has a Recruit Training Center at Trishuli. General Gurung has also announced upgradation of some welfare schemes. Under the scheme, the NA men will now onwards receive two pairs of combat dresses in 18 months time under the free issue scheme. Earlier, they used to receive only one pair. Also, the NA men will now receive one pair of direct molded sole boot every two years. General Gurung also announced increment in the scholarship amount. The amount of Rs 200 per pupil awarded as NA scholarship to 8,951 students in many private schools of the country will now be increased by Rs 100. Similarly, the CoAS scholarship amount has been increased to Rs 600 per student, which is Rs 200 more than the amount offered earlier. The new chief has also ordered dispatch of the first consignment of 7000-8000 beds out of the total 25,000 for the NA soldiers. Source: www.myrepulica.com Date: 09/14/2009 NIC mulling access of answer sheets to students The National Information Commission (NIC) is preparing to introduce a provision to allow students of Tribhuvan University (TU) to view their answer sheets if they wish to after the results are published, Annapurna Post daily reported. At present, there is a system of re-totaling the marks if the student is not satisfied with their score, but s/he is not allowed to see the answer sheet. But students say, such provision questions the transparency of re-totaling system itself. Some students studying at TU's Shankar Dev Campus had filed a complaint at NIC demanding they be allowed to see the answer sheets on July 19.
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NIC officials reached the conclusion after several meetings with officials of the Office of TU's Controller of Examinations (COE), Balkhu. COE has agreed to abide by the decisions of NIC, although it is not happy with the same. COE's Daya Man Karmacharya said, the provision to allow students to see their answer sheets will put the security of the examiners at stake. Moreover, TU bylaws and regulations say, all activities related to the examinations conducted by TU should be confidential. We are ready to abide by the NIC's decision, but it should be taken with careful consideration, said Karmacharya. NIC chief commissioner Binaya Kasaju said, we have proposed TU to allow the students see the photocopy of the answer sheet and keep the name of the examiner secret. NIC is likely to take a decision Monday. According to its governing regulations, NIC should decide on any complaints within sixty days of its receipt, according to its governing regulations. Source: www.nepalnews.com Date: September 14, 2009
Code of conduct for PLA fighters The Technical Committee under the Special Committee on Supervision, Integration and Rehabilitation of Maoist combatants has come up with a code of conduct and supervision mechanism for the management of Maoist combatants living in seven cantonments and 21 satellite camps. The committee is planning to hand over the proposals to the SCSIR tomorrow, Deepak Bhatta, a member of the committee said. The TC has proposed a cantonment management central coordinator’s office headed by a government secretary. Each of the seven cantonments and 21 satellite camps will have five to seven monitors headed by a civilian. The monitors will include a Maoist commander and individuals having experience in the security forces. The coordinator’s office will act as SCSIR’s secretariat. The code of conduct, meanwhile, proposes removal of photographs of Maoist leaders and party flags. It also requires strict monitoring of leaves and outings from the camp, as well as ensuring that arms stay within the camps.
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With the activation of SCSIR, the chain of command of the combatants ends with the Special Committee. However, the combatants will be given the option of going back to the party when the process of integration and rehabilitation starts. Members of the technical committee are satisfied with the progress, but are worried that the process depends too much on Maoist politics. Source: The Himalayan Times Date: 09/14/2009 Illegal sandalwood hoard seized Police have seized a hoard of red sandalwood being smuggled to Tibet in Bhaktapur, on Saturday night. According to the police, more than two tons of the contraband sandalwood (5930 pieces), have been confiscated from a truck heading to Khasa from Kathmandu. The police have also arrested the bus driver, Ram Bahadur Khadka, and conductor, Lokendra Karki, for further examination. A preliminary investigation revealed that the two were carriers, but the details of the leaders of the ring are yet to be discovered. The investigation also revealed that the contraband sandalwood was loaded from Chabahil near Gopi Krishna Hall. Police impounded the truck and handed the sandalwood over to the Bhaktapur-based District Forest Office. The smuggling of red sandalwood, a species enlisted in the Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), has continued as the plant remains in high demand due to its fragrance, medical and religious qualities. Cases of the smuggling of sandalwood from India to China via Nepal have been reported in the past. Source: www.kantipuronline.com Date: September 14, 2009
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