MORE STRIKES SHUT DOWN DISTRICTS

PRACHANDA SUB-COMMITTEE TENURE EXTENDED UNTIL27 MAY UPDATE


Kathmandu, 15 May: The tenure of an empowered sub-committee headed by Maoist Chairman and with representatives of major parties was extended by the main constitution drafting committee until 27 May Sunday.
A constitution which was to be promulgated y 28 May won’t be drafted by the deadline.
Government has registered a motion in parliament to extend the tenure by another one year after 28 May,
The main committee headed by Nilambar Acharya decided to consider demands of small parties to ensure inclusion of their demands in a basis law,
The main committee took the decision to extend the tenure of the Prachanda sub-committee as four assembly obstructed discussions Sunday as well.
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THREE PARTY SUMMIT

Kathmandu, 15 May: A meeting of the Big Three party—Maoists. NC and UML--brokered by Speaker Subash Nemwang began Sunday.
The meeting will also discuss extension of the constituent assembly (CA) tenure after 28 May, Ramesh Lekhak of NC said.
Differences on the government decision to extend a CA deadline for another year after28 May has been opposed by n main opposition NC, small parties and a big section in Khanal’s own UML.
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CLASS 11 EAMS BEGIN

Kathmandu, 15 May: Examinations of class 11 conducted by the higher secondary education board began Sunday.
Nearly 464,000 students are sitting for the tests.
Class 12 examination ended Friday.
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STRIKE GALORE

Kathmandu, 15 May: A 12-hour strike from six in the morning called by Chetri Samaj strike closed down Chitwan, Dhading and Kavre Sunday,
The strike is supported by Brahmins—the second largest ethnic group.
The Samaj is demanding a constitution by28 May protesting their interests and inclusion if a group of indigenous people.
The group opposes ethnic provinces.
Meanwhile, groups demanding nine autonomous ethnic provinces also closed down districts in the East Sunday,
It’s come to light officially Great Britain’s DFIID supported one ethnic group promoting autonomous province while withdrawing funding for the organization conducting latest round of protests.
DFID argued the strikes were restricting the right of others, including right of free movement.’
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DECAPITATED BODY FOUND IN UDAYAPUR

Kathmandu, 15 May: The decapitated body of trader Bijaya Kakri was recovered by police Saturday in Udayapur.
Part of the body was buried along a riverbed at Triveni-7
It’s not known who murdered Karki.
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MAN WHO DEVOTED ENTIRE LIFE TO CLEANING BAGMATI RIVER DEAD

Kathmandu, 15 May: Bhagawan Das Manandhar, who devoted his entire life keeping Bagmati river clean died Saturday.
He wouldn’t have his afternoon meal without cleaning what was once a clean river.
Manandhar, who hailed from Joche, was 84.
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MAOIST UNION LEADER ARRESTED

Kathmandu, 15 May: Maoist Kalpadeep Rai was arrested in the capital Saturday.
Rai, president of Anna Casino Committee of a Maoist trade union, made a murderous attack on another Maoist activist on Gyanuman Dangol, a loyalist of the party’s Dr.Baburam Bhattarai faction in the party last week.
The arrest was made as Maoists took charge of the home ministry.
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UCPN-M PROPOSES SEPARATE PLA FORCE FOR INTEGRATION





Kathmandu, 15 May: The Unified CPN (Maoist) has proposed formation of a separate mechanism of People’s Liberation Army (PLA) fighters, RSS reports.
A meeting of Maoist office-bearers held at party Chairman Prachanda’s residence in Naya Bazaar Saturday decided to float this proposal.
Talking to reporters after the meeting, Maoist Vice-Chairman Narayan Kaji Shrestha said the new proposal was proposed in line with the party’s practical earlier publicised policy to make a joint security mechanism of all security bodies.
The meeting decided to hold talks with other parties regarding the modality of army integration. It also reviewed progress made by the Special Committee formed for the integration, rehabilitation and supervision of PLA combatants.

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NEW GOVT. APPARENTLY PROTECTING VAT EVADERS

Kathmandu, 15 May: With the change of guard, investigation on much talked about fake Value Added Tax (VAT) bills scam has slowed down. Although Finance Minister Bharat Mohan Adhikari has been reiterating that the probe will be taken to a logical conclusion, sources at the Inland Revenue Department (IRD) say lack of interest of the finance ministry leadership has decelerated the pace of the investigation,,The Kathmandu Post reports

The department, which initiated the probe from the second week of December, has already forwarded files of 480 companies to Inland Revenue Offices (IROs) as of the third week of March.

IRD officials say the investigation slowed down following the resignation of former finance secretary Rameshwor Khanal. “We couldn’t muster the guts to give continuity to the probe after former finance secretary was forced to resign, as a section of the ministry leadership is trying to protect VAT evaders,” said a Kathmandu IRO chief. IROs are asked to wrap up the investigation by mid-July. However, the department has not initiated investigation against any new companies.

When IRD initiated the probe, it had a strong backing from former finance minister Surendra Pandey and secretary Khanal. Sources at the ministry say the incumbent finance minister is not so keen to take a tough action against VAT evaders. It is surprising to see the ministry’s lack of interest on the probe at a time when donors like World Bank are carrying out study to identify loopholes in the country’s VAT regime and suggest necessary policy reforms.

The IRD probe had found that use of fake VAT receipts is rampant in businesses related to construction materials, automobiles and construction, besides corporate offices and even government offices. It was found that evaders first present counterfeit VAT bills, and then show inflated expenditure to reduce profitability, eventually hurting the government’s income tax collection.

According to IRD Director General Rajan Khanal, investigation on 31 companies has been completed. Of the seven companies, whose investigation is currently in progress, four are the ones evading a huge amount of VAT. According to Khanal, the department will start a fresh investigation against other companies after wrapping up the current investigation by mid-July.

After ascertaining the actual amount of VAT evaded, the department has forwarded the files of the 31 companies to determine the amount of income tax they owe. The department has slapped a penalty of Rs 1.02 billion collectively on these companies. Moreover, they may be required to pay around Rs 1.21 billion in income taxs. According to an IRD official, the government will get additional revenue of Rs 5 billion through the investigation.

“There was a separate team formed for this investigation,” said the official. “With the team members being sent those IROs that primarily deal with revenue collection, we can’t expect the investigation to move at a faster pace.” IRD chief Khanal, however, said as the use of fake VAT bills is rampant, the department cannot handle it alone. Therefore, IROs are included in the probe, he said.

According to Khanal, the department will start a fresh probe on new sectors after the current investigation completes. “We have plans to identify new sectors of tax evasion and start investigation,” said Khanal. The department is keeping a close eye on banks and financial institutions, cooperatives, telecom companies.
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DONOR AGENCIES ASK GOVT, TO REFUND US$ 11.2 MILLION





Kathmandu, 15 May: Although donor agencies have been suggesting that the government should complete its donor-funded development works in stipulated time, the government has often failed to secure the needed funds in several instances, The Rising Nepal reports.
For example, the World Bank, DFID, and Australian Aid pooled a fund of around 29 million US dollars for HIV, nutrition and population programmes.
The government was making belated preparations to submit the proposal and failed to spend the fund in stipulated time.
The Ministry of Health and Population was supposed to complete the process of using the fund by including the request for proposal, and expression of interest some two months ago.
The donor agencies asked the MoHP to return some 11.2 million dollars when it failed to complete the process.
After the instruction, a letter was sent from the secretariat level requesting the donors to consider their decision.
The National Centre for AIDS and STI Control (NCASC) should have spent the PF for the Most-At-Risk-Population (MARP): injective drug users, female sex workers, male having sex with male and migrant workers.
Dr. Ramesh Kharel, acting director of NCASC, said that the money would not be returned. "We are extending the term until July," he said.
On the other hand, the Global Fund has also delayed in providing the 2nd phase of its seventh round of GF, first phase of which was already received through UNDP. The NCASC became a Principal Recipient in this proposal by removing UNDP for the first time. The GF had endorsed this.
Citing reasons of the second phase of seventh round, the GF again delayed for the 10th round fund.
According to schedule, the 10th round of GF should have been received in January. The time has been frequently extended and it was set for coming July 16.
A senior officer of NCASC said that UNDP itself and NGOs which were working in direct contact with the UNDP might have lobbied through different channels as they did not want to see the government as the PR.
The GF instructed to make a proposal with a tie-up with PF.
Dilli Raman Adhikari, an officer of NCASC, said that the NCASC completed all tasks as per GF’s suggestion.
"The GF had asked us to not duplicate the programme with PF, complete logistic and financial parts," Adhikari said.
As per GF suggestion, the NCASC made all preparations, he said. According to Adhikari, representatives of GF will come to Nepal by 17 May and consult with them.
If they agree with governments’ preparation after assessment within a month, the fund will be received by 16 July.

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INTERVIEW
PM OPTIMSTIC ALL WILL BE WELL


Kathmandu, 15 May: ATHMANDU: The spacious ground floor meeting hall is decorated with framed pictures of Nepal’s eight former prime ministers since the political change of 1990. Jhala Nath Khanal’s picture could have become the ninth one to have been framed up on the wall – next to his party colleague and bête noire Madhav Kumar Nepal – had he delayed his return home from his trip to Turkey earlier in the week.

Hours after his arrival on Thursday morning, the government registered a motion in the parliament seeking extension of the Assembly’s tenure by a year, a move that has drawn flak from the main opposition party. The Nepal-Oli faction of his own party has sided with the opposition and stepped up pressure on the prime minister to step down.

“The government cannot change in the way that is being demanded,” he told Ajaya Bhadra Khanal and Prakash Rimal of The Himalayan Times and its sister daily Annapurna Post, in a joint-interview on Saturday morning.

“Any attempt to look for solutions outside the procedures will only put the country in greater difficulty,” Khanal said.

The motion now in parliament, which will mature on May 27, has diverted the attention of political parties, giving some relief to the beleaguered prime minister.

“It’s not possible to conclude the peace process and frame a new constitution by May 28,” he said explaining the government move seeking the Assembly’s tenure extension in terms of “the doctrine of necessity”.

This time around, the government is honest and does not want to keep the country in protracted suspense over extension of the Assembly’s tenure beyond May 28, he said.

“The government took the decision because the state should have a concrete plan in case of emerging crises in the post May 28 scenario,” he explained, adding “It will take roughly a year to finalise the constitution once the first draft is ready. But, the tenure of the Constituent Assembly itself will be determined through consultation with other political parties.”

The prime minister said he was aware of the government’s priority. “Of course, the peace process should conclude before constitution-writing, but one cannot be at the expense of the other.”

Khanal said the government is taking some immediate steps, without divulging details, to conclude the peace process. “Within the next few days, we are announcing a forward looking proposal with a timeline for the peace process,” he said. “My policy of dealing with the Maoists falls in line with that of late Girija Prasad Koirala, who did not want to isolate the former rebels.”

The prime minister defended his decision to allot the home ministry to UCPN-M, saying the party had made a course correction lately by amending the Palungtar plenum’s decision pushing for people’s revolt, in favour of peace and constitution drafting processes.

Despite bitterness surrounding the political debates, the prime minister sounded optimistic about the post-May 28 situation. “Political parties will strike a consensus on the peace process before May 28, giving momentum to the peace and constitution writing processes and setting the stage for a general election,” he said. The ongoing consultations between parties, he hoped, would help forge consensus soon. “We are doing homework. I believe, there will be an agreement among parties in the next few days.”
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