PRACHANDA SUB-COMMITTEE TO PEPARE 1ST CONSTITUTON DRAFT BY 17 JULY UPDATE
Kathmandu, 9 June: The first meeting Thursday of a Prachanda sub-committee to resolve differences on 21 disputed issues to be incorporated in a proposed constitution will be ready by 17 July.
The sub-committee drew up a schedule for its work.
The Prachanda will meet again Friday.
The first draft of a constitution to institutionalize a declared republic by the constituent assembly whose tenure was extended for another three months until the end of August after a two-year tenure ended 28 May.
The assembly tenure laws extended for the second time in one year.
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UML YOUTH FORCE CLOSES DOWN TAPLEJUNG
Kathmandu, 9 June: UML Youth Force Thursday closed down Taplejung disrupting normal life.
Schools were forcibly closed down and vehicles weren’t moving on roads.
The youth wing of the party leading the government is demanding action against person who assaulted the body’s district leader Sanjaya Limbu Wednesday.
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ONE PERSON SHOT DEAD IN MOHOTTARI
Kathmandu, 9June: Ghuran Pathak, 75, of Nainahi-7 Tharuwahi was shot dead by unknown persons Wednesday in Mohottari.
Meanwhile, Nepal Army bomb disposal unit defused a pressure cooker bomb at Sukrouli VDC office in Nawalparasi Wednesday.
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PEOPLE’S FINANCE RESUMED BUSINESS AFTERTHREE-DAY CLOSURE
Kathmandu, 9 June: Troubled People’s Finance Ltd. Resumed business Thursday after a three-day closure following a liquidity crunch.
The financial institute said it’s liquidity situation has ‘improved to some extend’ with recovery of loans.
Business resumed at its head office and all branches, an announcement said.
The company said deposits were safe and asked clients not to panic.
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NEPSE SLIPS ANOTHER 6.22 POINTS
Kathmandu, 9 June: Nepse slipped another 6.22 points Wednesday as the index closed at 311.27 points when business closed on the fourth day of weekly trading
The bearish trend continued for the fourth consecutive day.
The index slipped 5.7 points Tuesday.
Altogether 180,097 shared were traded for Rs.20.84 million 1,135 transactions.
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REHABILITATION A MILLION DOLLAR QUESTION
Kathmandu, 9 June:The Special Committee (on supervision, integration and rehabilitation of Maoist combatants) will take up tomorrow three challenging issues of peace process: rank, number for Maoist combatants to be integrated and rehabilitation packages to those wishing to get back to the society, Lekhanath Pandey writes in The Himalayan Times..
SC has already set a calendar for finalising these issues by June 19. But the committee members have to bear in mind, while discussing the rehabilitation packages, what the donor community’s mood will be when it comes to funding cash for the purpose.
Nothing has been discussed since March on possible rehabilitation packages even when non-Maoist members at the SC Secretariat have agreed on providing a lump-sum amount to combatants based on 15-year gratuity, assuming that they have been in the service of the state since 1996, when the Maoists launched their armed rebellion.
Though the agreed upon amount for each Maoist combatant is Rs 400,000, the Maoist members are demanding another four lakhs as ‘republic bonus’. “But there has been no headway to this effect since March,” said Deepak Prakash Bhatta, a member at the Secretariat. Though the UCPN-Maoist, Nepali Congress and CPN-UML have proposed different figures, sources claimed that the parties might agree on integrating 6,000-7000 fighters, which leaves around 12,000 combatants for rehabilitation. Even if the parties go ahead with the agreed Rs 400,000, about Rs 5 billion will be required for rehabilitation packages.
One of major concerns of the donor community is that the Maoist party’s coffers will grow if cash was given to rehabilitated combatants. So, the donor agencies are willing to provide only training and other services as per the international practice.
Secretariat Coordinator Bala Nanda Sharma termed the situation ‘baffling’, saying, “There should be justification for giving cash to combatants, and how it can be guaranteed that the money will be used properly. And if there is no money, they might bargain for integration of all 19,000 plus fighters
Diplomatic sources have revealed to THT that none of the EU member states is in favour of dishing out billions of rupees to give golden handshake to PLA combatants opting for rehabilitation. Though no official decision has been taken to this effect, EU member states have informally discussed not to loosen their purse strings for the combatants, for some serious concerns, according to authoritative sources. The EU and the US fear that a significant chunk of the money could be misused by the UCPN-Maoist and part of it could even go into funding criminal activities, added the sources. Both the government and Maoists have yet to assure the international community that the money would be utilised properly. The EU, however, would like to be involved in such areas as providing vocational training to PLA fighters.”
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DIRECT KTM. HODA FLIGHT PLANNED
Kathmandu, 9 June: Nepal Airlines Corporation (NAC) is starting Kathmandu-Doha-Kathmandu direct flight from September, Kuvera Chalise writes in The Himalayan Times..
“Apart from, direct flight to Doha, the airlines is also planning to start Kathmandu-Riyad or Kathmandu-Damam flights, whichever is financially more viable,” said spokesperson of the NAC captain OB Gurung.
The national flag carrier has prepared a two-pronged strategy, while planning for the new routes. “If the new aircraft purchase process expedites and NAC can add two new aircrafts, we will take one more aircraft on dry lease and start new routes,” he said, adding that the second strategy will be to reduce current flights that have low occupancy and start new routes.
The corporation has also formed a committee — including trade union representatives — to suggest on buying new aircraft for the ailing national flag carrier that has only two age old Boeings. “There will be a high level committee that will decide on aircraft purchase but this committee will prepare primary report to help them take informed decision,” Gurung added.
The committee — led by Dr Kiran Poudel of Commercial Department at NAC — will present its report within 45 days.
However, according to Dhurba Narayan Shrestha, coordinator of Alliance for National Carrier Purchase and member of Nepal Tourism Year 2011 committee without new aircraft, it cannot increase its route. “Nepal urgently needs new aircraft,” he said, adding that purchase decision should be made as soon a possible not only to boost image of national flag carrier but also to bring in more international tourists.
“There were many committees formed to study and prepare final report for the purchase of new aircraft but none of them was implemented,” Shrestha added.
“The NAC should forward its proposal as soon as possible to Cabinet because only the Cabinet can take decision to purchase new aircrafts,” he said, adding that the previous deal has also been cancelled at the last moment.
Meanwhile, the corporation has reduced its overdraft to Rs 1.09 billion that is the sign of its improving financial health recently.
C check in August
Nepal Airlines Corporation is sending one of its two Boeings — 9N-ACA — for C check in August. “This time the aircraft will take only 18 days unlike one to two months,” the airlines said, adding that the cost has also been come down $1.6 million instead of the previous cost that used to come between $1.8 million to $2.5 million.
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MAOIST COMBATANTS SEEK UNIFORM DECISIONS ON INTEGRATION
Kathmandu, 9 June: The senior members of the Maoist People’s Liberation Army (PLA) Wednesday advised the party leadership to make uniform decisions on the issue of army integration, The Rising Nepal reports.
The PLA commanders also demanded with the Maoist leadership that the army integration and rehabilitation process should be carried out in a respectful manner.
The commanders made such requests and demands at a meeting between the Maoist office bearers and senior PLA members held to orient the PLA members about the decisions of the party regarding the peace process. The meeting was held at Naya Bazaar covered hall in the Capital.
"During the orientation, the PLA members suggested the leadership to be one while making decisions on army integration. They also said that the integration and rehabilitation should be respectable," Maoist vice-chairman Narayan Kaji Shrestha said after the meeting.
Shrestha said that party chairman Prachanda orientated the PLA commanders about the decisions of the party to conclude the peace and constitution writing process including the decisions of the latest central committee of the party and the 5-point agreement among the three major parties.
"The chairman urged the PLA members to be ready for integration and rehabilitation and serve the nation accordingly," he said, adding, "The chairman assured them that the integration would be respectable and that it would be carried out with a guarantee of pro-people constitution."
He said that integration modality, number, positions and ranks also featured during the discussions that lasted for 7 hours.
Around a hundred PLA members including chief Nanda Kishor Pun and deputy chief Chandra Prakash Khanal were present in the orientation in which entire gamut of peace process was discussed.
The orientation came a few days after the Army Integration Special Committee decisions to complete regrouping process of PLA for integration and rehabilitation by August 27, four days before the newly extended term of the Constituent Assembly (CA) expires.
Earlier, the Maoist party had taken important decisions on the integration issue such as accepting the Nepali Army’s modality, agreeing to integrate 8,000 to 10,000 PLA members and ending the dual security system of the Maoist leaders.
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SUDAN SCAM: CIAA CHANGES STANCE ON POLITICOS
Kathmandu, 9 June: A day after it lodged a corruption case against 34 top cops and two suppliers, Commission for Investigation of Abuse of Authority (CIAA) changed its standpoint on the possibility of implicating the ‘political and administrative’ leadership in the Sudan scam, The Kathmandu Post reports.
CIAA officials on Wednesday said they have not let the political and administrative leadership completely off the hook as there are still chances that a separate case could be filed once evidence surfaces about their involvement. Some CIAA officials claimed that even if the accused police officials do not implicate the political leaders, CIAA can still bring them under the scanner “on charge of amassing illegal property”.
After a 19-month probe, CIAA on Tuesday filed the case only against cops while sparing former Home Ministers Krishna Prasad Sitaula, Bam Dev Gautam and Bhim Rawal and Home Secretary Umesh Mainali in the Rs. 280 million scam.
In a press briefing on Wednesday, CIAA Secretary Bhagwati Kafle, who is also Acting Chief of CIAA, said CIAA has not completely closed the option of action against the politicos and administrators.
“We have not let them off scot-free. A separate case can be filed action taken against once we get sufficient evidence to prove their involvement,” said Kafle.
He said CIAA will start fresh investigation against the then political and administrative leadership if accused police officials name them. “The law allows us to file a separate case against them even though a case has already been filed against 36 people,” said CIAA Joint-Attorney General Dilli Raman Acharya.
CIAA’s changed version comes amid criticism from civil society and some accused police officials that it tried to ‘protect the politicians’. “Nepal Police alone cannot commit such a big crime without political patronage. Politicians who promoted the corruption should be also penalised,” former IGP Dhruba Bahadur Chanda said. Members of the State Affairs Committee also questioned CIAA for failing to move against politicians.
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VIBOR BANK SEEKS NRB INTERVENTION
Kathmandu, 9 June: In yet another spate of financial turmoil, Vibor Bikas Bank (VBB) -- a national level development bank -- has become the latest financial institution to seek emergency management takeover by the central bank, Nepal Rastra Bank (NRB) to avert a looming financial meltdown, Milan Mani Sharma writes in Republica.
A delegation of Nepal Bankers Association and Vibor Bank´s CEO Ajaya Ghimire formally approached two Deputy Governors of NRB Gopal Kafle and Maha Prasad Adhikari on Wednesday and requested for management takeover.
Refusing to take over the troubled bank, the NRB suggested to the members of the NBA to help Vibor by resuming stalled inter-bank lending.
The bankers refused to buy the idea. “The bank is seriously in crisis. Who will risk themselves by providing loans to it against land or house, which are not selling these days?” said a banker.
The bankers had left the NRB after the central bank officials assured them of taking concrete decision on Vibor on Thursday.
Earlier on Tuesday, the Vibor officials had approached the NBA, of which it is a member, requesting support for a bail out. During the emergency board meeting of NBA yesterday, central bank officials had suggested the association to take steps to rescue the bank.
However, bankers refused and argued that there was only one solution for Vibor: to ask the NRB to take over its management.
The trouble
Though the development bank has attributed its trouble to worsening liquidity crunch, sources closely watching the affairs in the bank said it has deeper problems related to corporate governance, mainly imprudent real estate investment decisions.
Officially, Vibor has blamed the crisis to withdrawal of deposits worth Rs 270 million by NRB and Rs 50 million by Nepal Army Welfare Fund about a week ago.
“Sudden siphoning out of Rs 320 million from the bank pushed it to an illiquid situation, whereby it now has no cash to pay money back to its depositors,” said an official at the bank.
But this is not all the trouble confronting the bank. It is facing problems in recovering loans, a major chunk of which has gone into the real estate business. “And it has no room for re-injecting liquidity through refinancing because it had taken 180 million from the central bank about 10 days ago,” said a member of Nepal Bankers Association (NBA).
The development bank was relying heavily on inter-bank lending to fulfill its obligations for the last one week. However, over the last few days, the banks too refused to lend to it, precipitating immediate crisis.
Latest financial situation
The latest financials of the bank shows that its deposits stand at Rs 3.57 billion as at mid-April 2011. Its loans and advances stand at Rs 2.30 billion.
Of the total loans, Vibor has Rs 522.44 million (about 23 percent of total loans) exposed in the real estate sector, including business complex and residential apartment loans (Rs 72.19 million), income generating commercial complex loan (Rs 109.95 million) and other real estate loan, including land purchase and plotting (Rs 235.67 million).
It has also issued Rs 839.96 million in overdraft, which officials said has largely gone to the real estate loans to avoid loan loss provisioning, something which could have squeezed its profits. In mid-April 2010, its overdraft loans was just Rs 383.95 million.
Despite such efforts, its provision for possible loan loss had doubled to Rs 101.95 million and the bank was operating with a net loss of Rs 88.44 million as of the end of the third quarter of this fiscal year. In the same period last year, the bank had announced that it earned a profit of Rs 129.56 million.
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SUDAN SCAM;CIAA CHANGES STANCE ON POLITICOS
POST REPORT-
Kathmandu, 9 June: A day after it lodged a corruption case against 34 top cops and two suppliers, Commission for Investigation of Abuse of Authority (CIAA) changed its standpoint on the possibility of implicating the ‘political and administrative’ leadership in the Sudan scam, The Kathmandu Post reports.
CIAA officials on Wednesday said they have not let the political and administrative leadership completely off the hook as there are still chances that a separate case could be filed once evidence surfaces about their involvement. Some CIAA officials claimed that even if the accused police officials do not implicate the political leaders, CIAA can still bring them under the scanner “on charge of amassing illegal property”.
After a 19-month probe, CIAA on Tuesday filed the case only against cops while sparing former Home Ministers Krishna Prasad Sitaula, Bam Dev Gautam and Bhim Rawal and Home Secretary Umesh Mainali in the Rs. 280 million scam.
In a press briefing on Wednesday, CIAA Secretary Bhagwati Kafle, who is also Acting Chief of CIAA, said CIAA has not completely closed the option of action against the politicos and administrators.
“We have not let them off scot-free. A separate case can be filed action taken against once we get sufficient evidence to prove their involvement,” said Kafle.
He said CIAA will start fresh investigation against the then political and administrative leadership if accused police officials name them. “The law allows us to file a separate case against them even though a case has already been filed against 36 people,” said CIAA Joint-Attorney General Dilli Raman Acharya.
CIAA’s changed version comes amid criticism from civil society and some accused police officials that it tried to ‘protect the politicians’. “Nepal Police alone cannot commit such a big crime without political patronage. Politicians who promoted the corruption should be also penalised,” former IGP Dhruba Bahadur Chanda said. Members of the State Affairs Committee also questioned CIAA for failing to move against politicians.
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SINKING VIBOR BANK SEEKS NRB INTERVENTION
Kathmandu, 9 June 9: In yet another spate of financial turmoil, Vibor Bikas Bank (VBB) -- a national level development bank -- has become the latest financial institution to seek emergency management takeover by the central bank, Nepal Rastra Bank (NRB) to avert a looming financial meltdown, Milan Mani Sharma reports in Republica.
A delegation of Nepal Bankers Association and Vibor Bank´s CEO Ajaya Ghimire formally approached two Deputy Governors of NRB Gopal Kafle and Maha Prasad Adhikari on Wednesday and requested for management takeover.
Refusing to take over the troubled bank, the NRB suggested to the members of the NBA to help Vibor by resuming stalled inter-bank lending.
The bankers refused to buy the idea. “The bank is seriously in crisis. Who will risk themselves by providing loans to it against land or house, which are not selling these days?” said a banker.
The bankers had left the NRB after the central bank officials assured them of taking concrete decision on Vibor on Thursday.
Earlier on Tuesday, the Vibor officials had approached the NBA, of which it is a member, requesting support for a bail out. During the emergency board meeting of NBA yesterday, central bank officials had suggested the association to take steps to rescue the bank.
However, bankers refused and argued that there was only one solution for Vibor: to ask the NRB to take over its management.
The trouble
Though the development bank has attributed its trouble to worsening liquidity crunch, sources closely watching the affairs in the bank said it has deeper problems related to corporate governance, mainly imprudent real estate investment decisions.
Officially, Vibor has blamed the crisis to withdrawal of deposits worth Rs 270 million by NRB and Rs 50 million by Nepal Army Welfare Fund about a week ago.
“Sudden siphoning out of Rs 320 million from the bank pushed it to an illiquid situation, whereby it now has no cash to pay money back to its depositors,” said an official at the bank.
But this is not all the trouble confronting the bank. It is facing problems in recovering loans, a major chunk of which has gone into the real estate business. “And it has no room for re-injecting liquidity through refinancing because it had taken 180 million from the central bank about 10 days ago,” said a member of Nepal Bankers Association (NBA).
The development bank was relying heavily on inter-bank lending to fulfill its obligations for the last one week. However, over the last few days, the banks too refused to lend to it, precipitating immediate crisis.
Latest financial situation
The latest financials of the bank shows that its deposits stand at Rs 3.57 billion as at mid-April 2011. Its loans and advances stand at Rs 2.30 billion.
Of the total loans, Vibor has Rs 522.44 million (about 23 percent of total loans) exposed in the real estate sector, including business complex and residential apartment loans (Rs 72.19 million), income generating commercial complex loan (Rs 109.95 million) and other real estate loan, including land purchase and plotting (Rs 235.67 million).
It has also issued Rs 839.96 million in overdraft, which officials said has largely gone to the real estate loans to avoid loan loss provisioning, something which could have squeezed its profits. In mid-April 2010, its overdraft loans was just Rs 383.95 million.
Despite such efforts, its provision for possible loan loss had doubled to Rs 101.95 million and the bank was operating with a net loss of Rs 88.44 million as of the end of the third quarter of this fiscal year. In the same period last year, the bank had announced that it earned a profit of Rs 129.56 million.
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