NC FAVOURS SMALL PARLIAMENT Kathmandu, 26 April: A meeting of the Central Committee and the Parliamentary Party of the Nepali Congress today [Wednesday] decided that the number of members of Parliament should not be much and adopting the form of governance that would maintain political stability, RSS reports. Party president Sushil Koirala briefed the meeting about the discussions among the political parties. The meeting held at the Constituent Assembly Building, Naya Baneshwar also decided to request the rest of the political parties for reconsidering the informal agreement among the parties to make the numerical strength of the Parliament at 325. Central Member of the party, Arjun Narsingh K.C., said the meeting stressed that the contentious issues seen in course of constitution drafting should be addressed within the additional two days’ term given by the Constitutional Committee. The central members and lawmakers of the party who participated in the meeting also took stance that the Nepali Congress should not dissociate itself from the parliamentary system. Nnnn MEDIA GOOGLE "I am deeply shocked by the news [of bribe to secure radio frequency] report that aims at assassinating my character. It is totally fabricated and bias." (Communication State Minister Surita Shah, The Rising Nepal, 26 April) Nnnn ‘PARTIES CLOSER TO CONSENSUS ON GOVERNANCE. FEDERALISM Kathmandu, 26 April: Leaders of three major political parties and United Democratic Madhesi Front (UDMF) could not arrive at any agreement on the contentious issues of the new constitution as the first day of the two days given to them by the Constitutional Committee (CC) of the Constituent Assembly for the purpose ended Wednesday. Four top guns from UCPN-Maoist, Nepali Congress, CPN-UML and Madhesi Front were assigned to find consensus on the form of governance and federalism. The meeting of UCPN-Maoist, Nepali Congress (NC), CPN-UML and UDMF held at the Army Integration Special Committee’s hall at New Baneshwor could not come up with a tangible outcome on the form of governance and state restructuring, the most vexing issues of the new constitution waiting to be resolved. However, leaders claimed they were close to a consensus on the issues of governance and federalism. Discussions over the issues were moving ahead in a positive way and parties were much closer to a consensus on these twin issues, leaders claimed emerging from the meeting. NC leader Ram Chandra Paudel informed that the leaders were close to a consensus on the form of governance and state restructuring. Parties presented different proposals regarding these two topics and discussions were held in different ways, however, they were not widening the gap on these issues, Paudel informed. "Parties have disputes regarding the names and borders of the federal states, however, they are close to a consensus on the numbers of states, which will be 6 or 7," Paudel said. CPN-UML chairman Jhalanath Khanal said that parties held discussions seriously to reach a consensus. "Though today’s meeting could not strike any consensus on the contentious issues, discussions are being held seriously," Khanal said. According to him, the meeting had been deferred to 1 pm Thursday. Parties would come to a consensus by tomorrow after holding discussions with their respective party leaders before sitting for the major parties’ meeting, he added. Deputy Prime Minister and Minister for Home Affairs Bijaya Kumar Gachchhadar said that parties would forge a consensus on state restructuring and forms of governance at the same time. Leaders informed that parties were scheduled to hold bilateral and tripartite meetings involving major three parties and UDMF sitting for the four-party meeting scheduled for tomorrow. Earlier, the meeting of major three parties with Madhesi Front had given responsibility to prepare the draft of consensus to the top leaders by Wednesday and present it in the next meeting. NC leader Arjun Narasingh KC, emerging from the meeting, said that the other three issues including citizenship provision, electoral system, and judiciary that have been agreed upon will be given tangible shape. Nnnn INFO. MINISTER’S RS.50M BRIBE DEMAND FROM Ncell RAISES HACKLES Kathmandu, 25 April: Minister of State for Information and Communications Surita Kumari Shah has allegedly demanded Rs 50 million from Ncell, the country’s leading GSM mobile operator, in return for a permission to import microwave frequency equipment to expand its services, a source at the telecom said, Mukul Humagain writes in The Kathmandu Post. Another foreign company was also recently forced to pay a hefty sum to the Ministry of Industry to conclude its joint venture agreement with its Nepali partner. The events unfold as the country will soon be marking the ‘Nepal Investment Year (NIY) 2012-13’, through which the government hopes to rope in large-scale foreign investment. The government has already set up the Investment Board and plans an investment summit for the next fiscal year. However, the Ncell episode shows that doing business in Nepal is not a cakewalk for foreign investors, while corruption in political parties is also on the rise. “When multinationals like Ncell is being asked for money, it will definitely hit Nepal’s ambition of attracting huge investments in the next fiscal year,” Suraj Vaidya, the president of Federation of Nepalese Chambers of Commerce and Industry, said. According to the source, Ncell had enquired with the Ministry of Information and Communications (MoIC) after it was denied permission to import the equipment. The minister and her advisor told Ncell that their permit would be processed within a day if they paid Rs 50 million, the source added. The story doesn’t end here. Minister Shah insisted on the bribe during her telephonic conversation with senior Ncell officials. Ncell was adamant on not making the payment, and three weeks later, Shah’s advisor Gauri Shankar came down to Rs 20 million, the source said. Ncell, however, refused to pay that amount also.NCell from Pg 1 A lot of multinationals, including Teliasonera, have zero tolerance policy when it comes to corruption, the source said. “It’s a national shame when a sitting minister openly asks for bribe from foreign investors,” Rameshwor Khanal, the economic advisor to the prime minister, said. The private sector said Ncell’s experience is nothing new for them. “Before 1990, the private sector had to pay money to get licences. After 1990, they paid politicians to get bank loans,” said a businessman. “Now, we are paying them just to make sure our businesses are not disturbed by their sister bodies.” Many in the private sector term the latest case as a fallout of prolonged political transition. “Many political parties have split in the last three years. With uncertainty over their political career, party leaders use their energy to amass money through whatever means they can,” said a businessman. Interestingly, a recent report by Transparency International (TI) has revealed that political parties are the most corrupt institutions in Nepal. According to the report, “Daily Lives and Corruption, Public Opinion in South Asia”, 53.7 percent of the respondents in Nepal said political parties were the most corrupt institutions. Khanal said that until five to six years ago, sitting ministers did not dare demand money as brazenly as they are doing now. “In those days, they were afraid their parties would take action against them. Now, they do not care about the party,” he said. Increasing demand for money from the political class, especially those in the Cabinet, is forcing many business houses to move to the service sector or trading from manufacturing. “One of the reasons why we sold our stake in Gorkha Brewery and Bottlers Nepal to foreign investors was excessive demand for money,” said Rajendra Khetan, the chairman of Khetan Group. For Khanal, the Ncell episode also indicates what lies ahead when Nepal fully embraces the federal structure. “This would make the pillars of federalism weak,” he said. “It indicates that there will be more misuse of the state coffers in the federal states.” Nnnn INDIAN ASSIST SOUGHT FOR NA DIRECTORATE As one of the key issues of Nepal’s peace process is integration and rehabilitation of former Maoist combatants into the Nepal Army, Nepal would seek Indian assistance to the NA’s proposed directorate during the Nepal-India security talks that begin in Pokhara on Thursday, The Kathmandu Post reports. “Mainly hardware and logistic assistance to the proposed NA directorate is one of our agendas,” said a source. The ninth series of Nepal-India Bilateral Consultative Groups on Security Issues would focus on military related assistance, information sharing and capacity building of the NA personnel with Indian aid. According to NA’s proposal, Nepali side will seek some logistic assistance from India, Deputy Prime Minister and Foreign Minister Narayan Kaji Shrestha said. Sources said the bilateral security instrument is set to discuss defence cooperation between two countries. Joint Secretary at the Foreign Ministry Dipak Dhital is leading the Nepali delegation while Joint Secretary (North) at India’s Ministry of External Affairs Akhilesh Mishra is heading the Indian team. Indian team arrived in Kathmandu on Wednesday and the talks teams will leave for Pokhara on Thursday. Nepal is likely to seek Indian assistance to buy some vehicles for the Nepal Army for which Indian side will contribute sixty percent of the cost according to an agreement. During the four-day talks, officials will also visit Muktinath. The consultative group comprises officials from security agencies as well as representatives from the Home, Defence and Foreign ministries of the two countries. “There are three components of the consultative group discussion—intelligence, training, and supply of lethal and non-lethal military support,” said the source. India has not resumed military aid to Nepal since the royal takeover in 2005. nnnn