NC CWC TO DISCUSS CONROVERSIAL PRESDENTIAL APPOINTMENTS

Kathmandu, 30 Nov. NC central working committee (CWC) Tuesday will continue discussions for the third consecutive day what has turned out to be controversial appoints of two office bearers by President Sushil Koirala.
Koirala announced his intention to appoint Ram Chandra Paudel and Krishna Prasad Shitaula vice-chairman and general secretary respectively.
Most of the 26 elected central committee members opposed Koirala’s appointment.
Spokesman Arjun Narsingh KC, a former Koirala supporter, even warned the appointments without understanding will be unfortunate.
The appointments have to be ratified by the CWC, according to an amended stature limiting the previous unlimited powers of the president during the Girija era.
Sushil is unhappy with the amendment and wants to restore, amid opposition, the power of the president.
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MEDIA GOOGLE

‘Does democratization [of NA] mean opening up trade unions inside the barracks. Does it mean allowing military personnel to shout slogans on the streets and block vehicular movement.”

(Retired Army Chief Gen Rukmangud Katawal, The Himalayan Times, 30 Nov.)

‘If peace and stability prevail in Nepal, it will have a bearing on this region. If political instability and anarchy continues in Nepal, it will affect the whole of Asia.”

(UML Foreign Department member Ydaya Raj Pandey quoting Chinese Vice-premier He Yong, Republica, 30 Nov.)
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SUJATA CLARIFICATION

Kathmandu, 30 Nov.: Deputy Prime Minister and Foreign Minister Sujata Koirala on Monday said she did not pressure anyone to allow flights to Air Arabia. “I saw a story in Monday’s edition of The Kathmandu Post that accused me of pressuring Nepal Airlines Corporation to allow Air Arabia to operate flights in the Kathmandu-Kuala Lumpur route and beyond. This allegation is baseless and fabricated,” she claimed, according to The Kathmandu Post.
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DETAILS OF SALARY, PERKS OF BANK LEADERS

Kathmandu, 30 Nov.:Following Nepal Rastra Bank’s much publicised move to cap the salaries and benefits of chief executive officers of banks and financial institutions, interest in how much they actually earn has grown.

According to details obtained by the Post, the top dogs pocket Rs 585,000 to Rs 25.24 million a year. Among the 27 commercial banks in operation as of the last fiscal year, Standard Chartered Bank Nepal’s CEO Sujit Mundul earns the most while the management chief of Nepal Bank Limited who was appointed by the central bank has the smallest salary.

It means that 27 CEOs have salaries ranging of Rs 45,000 to Rs 19,42,000 a month. Their monthly average salary stands at Rs 600,000 a month. These banks spent a total of Rs 210.55 million on their CEO’s salary in fiscal 2009-10. This amount does not include performance based pay and other perquisites such as expenses for vehicles and newspapers.

Among fully Nepali-owned banks, Radhes Pant, CEO of Kumari Bank, has the highest fixed salary. He gets Rs 1.04 million per month.

Although Standard Chartered Bank has the highest salary for CEOs, it is exempt from the central bank’s recently introduced guidelines as the chief is serving here under a technical service agreement (TSA) made with its parent bank.

As per the guidelines, the fixed annual compensation should be up to 5 percent of the total average expense for all employees over the last three years or 0.025 percent of the total assets the BFIs have maintained in the previous year, whichever is lower.

Bankers who have been opposing the central bank’s attempt to cap their salaries since the issue was floated are still crying foul. Kumari CEO Pant said such a rule could lead banks to hire more people and ramp up deposit collection and lending in order to increase staff expenses and assets so that CEOs could draw higher salaries.

“This will also discourage talent from entering the banking industry as top managers,” he said. When asked if his pay was higher than permitted by the guidelines, Pant said he would have to think about it.

Except for Standard Chartered Bank, other joint venture banks, Everest and Nepal SBI, pay their CEOs less than what most CEOs of private sector banks are getting.

Everest’s CEO P.K. Mohapatra gets Rs 106,000 a month. Likewise, the monthly salary of the CEO of Nepal SBI is Rs 117,000.

“Even if all other facilities such as accommodations are included, my salary does not come close to what some CEOs of Nepali private sector banks are getting,” said Mohapatra.

According to him, he does not get extra compensation from the parent bank Punjab National Bank in India except what has been written in the TSA. He, however, maintained that CEO salaries should be market driven and that the bank’s board should have the absolute right to fix them.

Government-owned banks and banks in which the government holds a stake pay less than private sector banks. They have been excluded from the central bank’s guidelines on salaries. KATHMANDU, NOV 29 -
Following Nepal Rastra Bank’s much publicised move to cap the salaries and benefits of chief executive officers of banks and financial institutions, interest in how much they actually earn has grown.

According to details obtained by the Post, the top dogs pocket Rs 585,000 to Rs 25.24 million a year. Among the 27 commercial banks in operation as of the last fiscal year, Standard Chartered Bank Nepal’s CEO Sujit Mundul earns the most while the management chief of Nepal Bank Limited who was appointed by the central bank has the smallest salary.

It means that 27 CEOs have salaries ranging of Rs 45,000 to Rs 19,42,000 a month. Their monthly average salary stands at Rs 600,000 a month. These banks spent a total of Rs 210.55 million on their CEO’s salary in fiscal 2009-10. This amount does not include performance based pay and other perquisites such as expenses for vehicles and newspapers.

Among fully Nepali-owned banks, Radhes Pant, CEO of Kumari Bank, has the highest fixed salary. He gets Rs 1.04 million per month.

Although Standard Chartered Bank has the highest salary for CEOs, it is exempt from the central bank’s recently introduced guidelines as the chief is serving here under a technical service agreement (TSA) made with its parent bank.

As per the guidelines, the fixed annual compensation should be up to 5 percent of the total average expense for all employees over the last three years or 0.025 percent of the total assets the BFIs have maintained in the previous year, whichever is lower.

Bankers who have been opposing the central bank’s attempt to cap their salaries since the issue was floated are still crying foul. Kumari CEO Pant said such a rule could lead banks to hire more people and ramp up deposit collection and lending in order to increase staff expenses and assets so that CEOs could draw higher salaries.

“This will also discourage talent from entering the banking industry as top managers,” he said. When asked if his pay was higher than permitted by the guidelines, Pant said he would have to think about it.

Except for Standard Chartered Bank, other joint venture banks, Everest and Nepal SBI, pay their CEOs less than what most CEOs of private sector banks are getting.

Everest’s CEO P.K. Mohapatra gets Rs 106,000 a month. Likewise, the monthly salary of the CEO of Nepal SBI is Rs 117,000.

“Even if all other facilities such as accommodations are included, my salary does not come close to what some CEOs of Nepali private sector banks are getting,” said Mohapatra.

According to him, he does not get extra compensation from the parent bank Punjab National Bank in India except what has been written in the TSA. He, however, maintained that CEO salaries should be market driven and that the bank’s board should have the absolute right to fix them.

Government-owned banks and banks in which the government holds a stake pay less than private sector banks. They have been excluded from the central bank’s guidelines on salaries.

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DELAY IN GOVT, FORMATION HITS TIFA DEAL

Kathmandu, 30 Nov.: Even though Nepal and the US finalized trade and investment framework agreement (TIFA) some six months ago, the two sides have yet to ink the deal. This has lingered the chances of Nepal gaining favorable market access in the largest economy of the world, Republica reports.

Officials at the Ministry of Commerce and Supplies said they had invited Deputy US Trade Representative Demetrios Marantis for signing the agreement a few months ago. “But we have not got any response to this connection,” an official at the Ministry said.

Nepali Ambassador to the US Dr Shankar Sharma, meanwhile, disclosed to Republica that the US government was waiting for the formation of a new government in Nepal to ink the deal.

“The agreement is already finalized and the USTR office too is eager to complete the signing formalities. However, it has stayed the process because it wants the country to have the new government in place for signing,” Dr Sharma said over phone.

Once signed, TIFA is scheduled to replace bilateral Economic and Trade Agreement (ETA) that Nepal and the US signed in 1947. This will pave way for preferential facilities for Nepali exports in the US, as TIFA has, among others, provisions that facilitate Nepal to gain favorable market access in the US.
It recognizes the difference in economic and trading status between Nepal and US and commits to reduce tariff and non-tariff trade barriers.

However, the accord, being the framework agreement, does not make specific promises.

The agreement has seven articles related to trade, investment and technical assistance. It provisions establishment of commerce secretary-level Nepal-US Council on Trade and Investment (NSCTI) as a permanent mechanism that will meet at least once a year to work out means and ways to expand trade and investment.

The council is envisaged to serve as a forum for negotiation, monitor trade and investment relations, identify opportunities for expanding trade and investment, and sort out concerns and constraints related to trade and investment.

TIFA also incorporates US readiness to pledge technical assistance to Nepal for raising the country´s capacity to widen commodity base and increase exports. Under the agreement, US has expressed eagerness to support Nepal in product development and also extend assistance to build trade related infrastructure. Increasing US investment and transfer of technology is another crucial component of TIFA.

US is the third biggest market of Nepali commodities, after India and the European Union. However, the economic activities between the two countries had eroded sharply in recent years due to change in global trading regime and conflict and political transition in Nepal.

Nepal has received only nominal investment from US and its major exports like readymade garment have also collapsed over the years. As a result, bilateral trade between Nepal and the US stands very nominal with Nepal enjoying trade surplus of Rs 180 million.

Recognizing the weak business linkages between private sector players, despite decade-long trade ties between the two countries, TIFA envisages encouraging and facilitating contacts between enterprises and other private sector groups in each other territories.




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