FURTHER DETAILS OF PROTEST OF FORMER MAOIST FIGHTERS

FURTHER DETAILS OF STRIKE BY MAOIST FIGHTERS
Kathmandu, 29 Dec.: Normal life has been disrupted by the sudden and previously unannounced strike by disqualified former Maoists demanding reinstatement and other facilities.
The disqualified fighters have come out of the streets in urban centers like Dhangadi and Mahendranaga to stage protests ad other urban areas.
The protest has caused hardship to people.
The strike coincides with intra-party differences in UCPN (Maoist).
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IRD TO MONITOR LIQUOR PRODUCERS
Kathmandu, 29 Dec.: Inland Revenue Department (IRD) is monitoring domestic liquor manufacturers and importers from Sunday, according to director general Tanka Mani Sharma, The Himalayan Times reports.

The move will control suspected revenue leakages by domestic liquor manufacturers and under-invoicing by the importers, he said, adding that the team led by deputy director general Madukumar Marasini will monitor liquor industries and other concerned parties– importers and wholesalers– throughout the country.

The department has completed the monitoring on whether selling-points are violating existing legal provisions or not,” he said, adding that it will start to scan importer and producers after completing the current monitoring.

The department has decided to tighten the liquor after receiving complaints of importing branded liquor with under-invoicing. “The government is loosing revenue due to under-invoicing,” he claimed.

“It is not justifiable that the most famous brand are imported with $2 and $3 customs valuation, which is surprising,” a source at the department said.

The team will also monitor alcohol producing industries and bring them into the tax net if found guilty, Sharma said.

Liquor business is the main source of excise in the country. “The government has projected Rs 6 billion excise from domestic liquor sector alone,” he informed, adding that the contribution of imported branded alcohol also cannot be ignored.

The government has the target of Rs 19.78 billion revenue from excise in the current fiscal year.

The government has set the target of Rs 19.78 billion revenue collection from excise in the current fiscal year.
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DEPOSITS IN FIs FROM FIs DIPS 100 FOLD
Kathmandu, 29 Dec.: The balances held by financial institutions in other financial institutions have declined 100 fold as the central bank has prohibited to park money interest yielding deposits, The Himalayan Times reports.

Since mid-July, the deposits held in other financial institutions have gone down by Rs 88 billion. In the beginning of the fiscal year the balances held by financial institution in other financial institutions stood at Rs 96 billion have gone down to Rs 8.3 billion by mid-November.

The financial institutions have reduced parking their money in other financial institutions following the central bank’s decree to close down the interest yielding deposits by the first half of the current fiscal year. Though there is no restriction on holding interest free accounts.

“The financial institutions have reduced holding deposits in other financial institutions as per the central bank’s decree to prohibition on interest on those kinds of deposits,” expressed Rajendra Man Shakya, president of Nepal Finance Companies Association. In August, Nepal Rastra Bank (NRB) had asked the financial institutions to close down interest yielding deposits in other financial institutions by the mid-January to prevent asset mismanagement.

“The financial institutions had developed a penchant of depositing their money longer period but borrow with others for short-term which has created asset mismatch creating liquidity crisis, this provision aims at avoiding such occurrences,” said Bahskar Mani Gyanwali, spokesperson at NRB.

Commercial banks have reduced the deposits from Rs 2.8 billion in the beginning of the year to Rs 24 million by mid-November. Likewise, development banks have reduced their holdings to Rs 3.8 billion from Rs 36.8 billion and finance companies have diminished deposits in other financial institutions to Rs 3.9 billion from Rs 52 billion in the four months period. Microfinance development banks have also cut the deposits in other financial institutions to Rs 540 million from Rs 4.8 billion in the review period.

However, the provision has dried one of the income sources for the financial institutions– especially small development banks and finance companies.

“Finance companies were earning little through interest earned by parking their idle funds collected paying higher interest to the depositors but the provision has contracted that income source,” pointed out Shakya. He also expressed the absence of viable projects to lend the funds that has contracted the income source for the finance companies.

“There are not much projects in real sector where we can finance and the government priority sectors do not offer much return,” he said.
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TASK FORCE RECOMMENDS EASY EXIT
Kathmandu, 29 Dec.: ACompanies wanting to close down will now get an easy exit with the report of the Sick Industry Rehabilitation High Level Taskforce recommending that dying companies be allowed to fold with the least hassle, The Kathmandu Post reports.
Currently, shutting down a company has been one of the most complicated parts of the Company Act. The report that was submitted to Prime Minister Baburam Bhattarai on Monday has asked the government to provide an easy exit to terminally sick firms by giving them two years’ time to do it.
“Business enterprises which have declined to such a state that they are beyond restoration should be given an easy way out as it is the only way to address them,” reads the report.
Besides recommending an easy exit for non-functioning firms, the taskforce has urged providing rehabilitation packages of a longer duration for sick companies and those about to sink depending on the severity of their need.
National Planning Commission Vice-Chairman and coordinator of the taskforce Dipendra Bahadur Kshetri said that they had submitted the report to the prime minister which contains practical recommendations to revive sick enterprises. The report
has also asked the government to provide packages of three
to five years for the rehabilitation of sick firms arguing
that they can be revived if the government gives them
special care. “We have recommended to the government to provide them low interest
credit and tax exemption
and go easy on them with regard to their earlier loans,” said Kshetri.
According to the report, companies that are suffering from high interest rates, power shortage and crippling industrial environment should be categorized as sick companies. “The government should provide soft loans to such firms for at least a year to bolster their self-confidence,” reads the report.
Kshetri said that putting all the sick companies in the same basket was a mistake and added, “Since they have various reasons for becoming sick and their sickness varies in
degree, they should be treated differently.”
The report has also suggested developing a fund at the Ministry of Industry (MoI) to provide them incentive packages. Senior officials at the MoI confirmed that internal discussions were going on to create such a fund. However, he said that the ministry was yet to decide the size of the fund.
“As the recommendations are quite practical, we will begin implementing them soon,” said Industry Secretary Umakant Jha. “As they become effective in the long run, the recommendations will eventually be incorporated in the national industrial policy.”
So far, 25 companies have approached the MoI to be declared sick and ask for incentives. Similarly, the NPC and the FNCCI have received such requests from 13 and 25 firms respectively. Industrialist Manish Agrawal said that the recommendations submitted by the high level taskforce were an effective tool to resolve the problems being faced by sick companies. “We are thankful that the taskforce has tabled remedies as per our recommendations,” said Agrawal.
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DETAILS OF INDIAN NATIONALS INVOLVED IN NEPAL’S MAOIST WAR
Kathmandu, 29 Dec.: More details have emerged about the four Indian nationals who were recruited into the Maoist army during the conflict, Phanindra Dahal writes in The Kathmandu Post.
Last Friday, the Post had broken the news that there were half-a-dozen Indian nationals among the 19,602 Maoist combatants verified by the UNMIN in 2007. Apart from four in Chitwan, two Indian nationals, according to Special Committee sources, were verified by the UNMIN at the First Division in Ilam.
All four of them had filled up survey forms during last month’s regrouping process at the Third Division headquarters of the Maoist combatants in Shaktikhor, Chitwan.
UNMIN’s database accessed by the Post confirms that Panalal Kumar Chaudhary and Bhola Chaudhary are residents of Motihari, India, Amar Subba and Chanda Limbu of Darjeeling and Sikkim, respectively.
Three of them were registered under Kalyan Anish Memorial Brigade of the Maoist army by UNMIN in 2007, while Subba was registered under Bethan Memorial Brigade.
Panalal, 23, according to the personal information collected by UNMIN, was recruited into the Maoist Army in June 2005. He has been listed as section vice-commander with combat, cooking and cleaning responsibilities.
Panalal’s last duty station before the signing of the peace agreement is mentioned as Nuwakot. He has completed primary education and has three years’ experience as ice-cream maker, according to the UNMIN-collected information. Another Indian national Bhola Chaudhary alias “Danger”, 16, was recruited into the Maoist army in May 2005. His permanent address is Motihari, Lakhaura-9, India, and was entrusted with the responsibility of section vice-commander.
Bhola was involved in an unspecified business for three years, according to the person details. His last duty station was in Kavre.
Company commander Subba, 35, is the senior ranking combatant among the four participating in the regrouping process. He had joined the PLA in 2003 and was based in Silgudi before the insurgency came to en end, according to the personal profile. His parents had already passed away, and he was unmarried when the information was collected in 2007. He has completed secondary level education.
Female combatant Limbu alias Dibya, 24, from Sikkim was recruited into the PLA in 2005. Her last duty station was Kathmandu and occupation was mentioned as combatant. Among the four combatants, she opted for integration during the regrouping process.
Secretariat member Shambhu Ram Simkhada, who led the survey team at the Chulachuli-based cantonment, could not confirm the issue. PLA commanders have been arguing that the government should provide voluntary retirement package to the combatants with Indian nationalities as well.
“We cannot provide options offered by the Special Committee to the combatants who are not Nepali nationals,” said Nepali Congress leader and Special Committee member Ram Sharan Mahat. “The registration of the Indian nationals as PLA cadre has raised serious question about the credibility of the verification process carried out by UNMIN.”
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MIXED REACTION TO SUPREME COURT DECISION WITH NC SUPPORTING COURT DECISION
Kathmandu, 29 Dec : The rejection by the Supreme Court (SC) of the petitions seeking review of the apex court´s ruling on CA term extension has drawn mixed reactions from the political parties, Republica reports.

The main opposition Nepali Congress (NC) has defended the apex court decision while the ruling political parties and the CPN-UML have accused the SC of going beyond its jurisdiction.

Chairman of Tarai Madhes Democratic Party (TMDP) Mahantha Thakur on Wednesday said that the SC´s rejection of the petitions seeking review of the apex court ruling on CA term extension has raised questions about the supremacy of parliament.

Speaking at the fourth anniversary function of the TDMF in Kathmandu on Wednesday afternoon, Thakur termed the apex court´s decision as unfortunate.


“Parliament embodies the people´s sovereignty, and in rejecting the government petition seeking review of its ruling on CA term extension, the SC is inviting confrontation in the country,” Thakur stated.

Talking to media persons briefly at the same function, NC President Sushil Koirala said that the political parties should respect the SC decision. “We believe in the rule of law. So, we must respect the step taken by the apex court,” he added.

Meanwhile, Chief Political Advisor to the Prime Minister, Devendra Poudel, accused the SC of attempting to enter into politics.

“The judiciary has caused terror by entering into politics,” said Poudel while addressing a program organized by the Reporters´ Club in the capital, also on Wednesday afternoon.

He said that the prime minister has been in consultations with political parties and legal experts, adding that the latest step taken by the apex court is not a good indication.


“The SC does not have the right to take decisions in the way the cabinet does; it can only interpret the constitution and the laws,” added Poudel.

He also accused the apex court of presenting itself as competitor to the legislature and the executive branch.

CPN-UML Politburo Member Pradip Gyawali opined that the SC has invited a proxy war by rejecting the government petition seeking review of the apex court ruling on CA term extension.

“Such a step by the apex court will further complicate the situation in the present transitional period,” he stated.

Gyawali urged the SC not to project itself against the legislative and executive bodies of the state.

NC leader Ramesh Lekhak said that the SC´s latest move has invited complications in the country. “I hope the apex court will accept the government petition seeking review of its ruling on CA term extension,” he added.

Law and Justice Minister Brijesh Kumar Gupta said the SC must be accountable for the possible consequences if the country does not get a new constitution despite the continuous efforts of the political parties.

Addressing the same function, constitutional expert Dr Bhimarjun Acharya claimed that political leaders do not have any moral grounds for objecting to the SC ruling on CA term extension.

“If the apex court accepts the government petition seeking a review of its ruling on CA term extension, it will mean that the SC is under political influence,” Acharya opined.

President of Nepal Bar Association Prem Bahadur Khadka said that the political parties must respect the apex court´s decision if they believe in the separation of powers.
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NO INSURANCE FOR OFF-DUTY DEATHS IN MALAYSIA
Kathmandu, 29 Dec.: Dhanik Lal Mahara, a poor migrant worker from Sikron village of Siraha district, was found dead in a congested room shared by around half a dozen Nepali laborers in Selangor of Malaysia last August, Om Astha Rai writes in Republica.

The 40-year-old had reached Malaysia a few weeks ago to work at a Selangor-based plastic factory by paying Rs 70,000 to a Nepali manpower agency.

As in the case of every Nepali worker willing to go overseas through legal channels, half of the amount paid by Dhanik Lal to the Nepali agency was given to a Malaysian agency, which included an insurance fee as well. However, Dhanik Lal´s wife Sita Devi -- who is now in dire straits since she must bring up all of her four children, including one mentally retarded, on her own -- did not receive money from the Malaysian insurance company.

“Our man did not die on duty,” said Pramod Kumar Mahara, Dhanik Lal´s brother-in-law, who recently accompanied Sita Devi to Kathmandu for claiming compensation from Foreign Employment Promotion Board (FEPB). “He died while asleep. He should have died while working in the factory for his family to claim insurance money.”

Pramod´s sarcastic words reflect a grim reality. A majority of Nepali workers who die in Malaysia are not entitled to insurance money from any of Malaysian insurance companies in spite of having paid insurance fees through manpower agencies before leaving the country. This is mainly because the policy under which all Nepali workers are insured in Malaysia covers only on-duty -- not all types of -- deaths.

“If a Nepali worker dies while working or on the way to and from the company, his family receives 25,000 Malaysian ringgits from the insurance company, 5,000 ringgits of which is for bringing the dead body to Nepal,” says Kumud Khanal, general secretary of Nepal Association for Foreign Employment Agencies (NAFEA), adding, “However, if one dies while asleep, his family gets nothing.”

Ironically, most of Nepali workers die while asleep because the temperature of their congested rooms. “One in every three deaths has occurred while the workers were asleep. Besides, many workers die in accidents while crossing the roads since they are not familiar with traffic rules in Malaysia,” says Khanal. “However, their families do not get the insurance money due to the flawed policy.”

According to government statistics, at least two dead bodies of Nepali workers are brought home every day.

Khanal urged the government to take up the issue of flawed insurance policy while signing a Memorandum of Understanding (MoU) with Malaysia. “If this issue is addressed in the MoU; and Malaysia makes it mandatory for all agencies that hire workers from Nepal to introduce 24 hours --instead of only on-duty-- insurance policy, families of those who die outside their factories will also get insurance,” said Khanal.

Purna Chandra Bhattarai, Director General (DG) of Department of Foreign Employment (DoFE), said, “This is indeed a serious issue. However, we need not include this in the MoU. We can raise this issue in letters of exchange or talks with the Malaysian authorities.”

Ganesh Gurung, coordinator of a high level task force on foreign employment management and improvement, says, “Not only those who die off duty, even families of those who die on duty give up their claim for insurance money because it takes a long time.”

“The only on-duty insurance policy for Nepali workers is flawed. The insurance policy should cover Nepali workers right from the day they leave the country and the day they get back to home. The only thing Nepali workers need to do is pay a little more as insurance fees. The Nepal government can also make arrangements for bulk insurance deals for all workers.”
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