TUESDAY IS NAGPANCHAMI Kathmandu, 24 July: Tuesday is nagpabhami. The day is celebrated by worshipping the day with snake worship. The day also marks the beginning of autumn. Snake painting as pasted at house entrances early morning to mark the day. nnnn . CIAA TO SCAN ARMY CORUPTION CASES Kathmandu, 24 July: The government has decided to bring corruption in the Nepal Army under the jurisdiction of the Commission for Investigation of Abuse of Authority (CIAA) and is amending the existing Army Act to that end, Kiran Chapagain writes in Republica . The government took a decision to this effect under a national anti-corruption strategy endorsed by the cabinet recently to implement its commitment to the United Nations Convention Against Corruption (UNCAC) to which Nepal has been a party since February 2011. Prime Minister Baburam Bhattarai on Monday unveiled the strategy, which stated that the Ministry of Defense, with support from the Ministry of Law, Justice and Constituent Assembly, will take necessary steps to amend the existing Army Act within 180 days. "Corruption in the army is not an issue to be dealt with by a military court; it is an issue to be taken up in a civilian court," said Ramesh Dahal, joint secretary at the Office of the Prime Minister and Council of Ministers, who led a technical team to prepare the anti-corruption strategy. "We have proposed that the CIAA be given powers to investigate and prosecute army officials implicated in corruption, in the spirit of the UNCAC." Experts said the decision, if implemented, will be a welcome move as it will for the first time allow the investigation, prosecution and adjudication of corruption in the army through independent and autonomous state institutions. "Hitherto, corruption in the army has not been brought under the jurisdiction of any independent and autonomous body, under the pretext that the army´s sensitivity will be harmed if corruption therein is dealt with outside army institutions," said Surya Nath Upadhyay, former chief commissioner of the CIAA. Corruption in the army had remained untouched until 2007 when the new constitution was promulgated. The 1990 Constitution had kept the army out of the reach of any investigation into corruption therein. But the 2007 Interim Constitution brought such corruption under the ambit of a separate law. Accordingly, the Army Act amended after the political change of 2006 has a provision for internal investigation into corruption by army personnel and adjudication by a military court. But the independence of investigation, prosecution and adjudication of corruption cases in the army has always been under question. Officials at the Prime Minister´s Office argue that corruption cases are not military in nature and should be taken up by civilian investigation institutions like the CIAA and tried in civilian courts. However, Upadhyay said that any autonomous and independent body to be entrusted with investigating and prosecuting persons implicated in corruption should have a separate cell for taking up corruption in the army so as to respect the sensitivity of the army. In another move, the government has decided to amend the Judicial Council Act to give powers to the Judicial Council to investigate and prosecute Supreme Court judges implicated in corruption. Till now, the law permits the Judicial Council to investigate and prosecute district and appellate court judges only. "We have made such a proposal, concluding that no one in a public post with public responsibilities should go unpunished if implicated in corruption," said Dhakal, when asked why the government has taken such a decision regarding any corruption by apex court judges. The strategy unveiled by the prime minister in the presence of his cabinet and government secretaries also vows to bring corruption in the private sector under the ambit of the CIAA, according to Dr Trilochan Upreti, law secretary at the Office of the Prime Minister, who led a taskforce to draft the strategy. Upreti said the government will amend 30 existing laws and enact nine new ones to ensure provisions for making corruption in the private section a criminal offence and punishable. "Till today, corruption in the private sector has gone unpunished," Upreti told Republica, "Thus, this will also be brought under the jurisdiction of the CIAA." nnnn ________________________________________ INDUSTRIES DEMAND INCENTIVEWS Kathmandu, 24 July: In an effort to give a new lease of life to slowing industries, the private sector has asked the government to offer them a slew of incentives that include exemption of income tax, investment subsidy for laying down industrial infrastructures and special additional protection for small and cottage industries, Republica reports.. The demands include exemption of corporate income tax for the industrial sector by at least five percentage points compared to the rate slapped for others and subsidy in investment for developing industrial infrastructure in remote districts. "Our industries are passing through years of slowdown amid weakening competitiveness. Without incentives we can´t increase our contribution to the industrial sector," Dinesh Shrestha, executive member of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said while presenting a set of suggestions on behalf of the private sector for the upcoming Industrial Enterprises Act, at an interaction on Monday. Shrestha asked the government to provide 90 percent income tax exemption to all national priority industries for seven years from their commencement. As per a provision in the existing act, only select national priority industries such as hydropower, mining, cement and petroleum exploration are entitled to that incentive. Entrepreneurs have also sought a provision for deducting spending on social service and philanthropic purposes from profits for income tax proposes. Amid increasing cost of production due to exorbitant bank interest rates on industrial credit, the private sector has also demanded credit at a maximum 5 percent interest along with adequate incentives for exports. Demanding clear procedures for duty draw back on exports, a provision for settling dues within 45 days of application by exporters has likewise been sought in the upcoming act. The private sector also wants the government to collect one percent customs duty on imports of industrial equipment such as stabilizers, quality testing machines and UPS batteries, in addition to other goods such as machineries, transformers, industrial tools and equipment used by quality testing labs. With the hope of promoting small scale industry, the FNCCI has also demanded exemption on excise duty and income tax for such firms for up to seven years followed by 75 percent, 60 percent and 50 percent exemption in succeeding years. To ensure easy access to loans at consessional rates an Industrial Bank has been suggested under the upcoming act. Business people further suggested that the government make a provision for only 80 percent income tax in the years when industries provide at least one-third of total employment to women, differently-abled people, minorities or oppressed people. In addition to the existing provision under which the government can arrange necessary land for industries, business entrepreneurs have also demanded that the government facilitate the acquisition of private land for industrial proposes. Establishment of a women entrepreneur fund and a handicrafts and cottage industry village and introduction of a small and cottage industry credit program to provide loans at a maximum of five percent interest are among other suggestions put forth. Demanding revocation of the existing provision of five million rupees penalty for those operating without registration or operating permission, the entrepreneurs have suggested a penalty between Rs 5,000 to Rs 300,000 depending on the size of the industry and nature of the offence. Similarly, recognition of only one authorized trade union at industrial firms and provision of an industrial fund for the social security of entrepreneurs are also sought. They also suggested that the government designate as sick those industries that face an abnormal situation including losses for the last five consecutive years, frequent strikes, power interruption and blacklisting for defaulting on loans, among other things. Highlighting the provisions in the proposed amendment to the act, Anil Kumar Thakur, joint secretary at the Ministry of Industry (MoI), announced exemption of income tax for micro enterprises, a five percentage point discount on income tax for industries, and exemption of income tax by 90 percent, 80 percent and 70 percent for 10 years for industries established in the least developed, underdeveloped and less developed districts respectively. Similarly, Thakur said the proposed act envisages exemption of income tax by 25 percent for a particular year if employment is provided for six months to over 100 people in the case of small entreprises, to over 200 people in the case of medium scale industries and to 500 people in the case of big enterprises. Exemption of income tax by 90 percent for national priority industries for seven years is also proposed in the draft act. Nnnn ________________________________________ AFTER REVOLTION, IS UCPM MAOIST HEADED TOWARDS SPLIT? Kathmandu, 24 July: For the Unified CPN-Maoist, what was intended as a show of force ended up as a farce, Tika R Pradhan writes in The Himalayan Times . The five-day long seventh plenum of UCPN-M was meant to demonstrate the strength after a large chunk headed by Mohan Baidhya split to form CPN-Maoist. At the end, the commitment by top leaders ‘to end corruption and moral degradation’ averted a crisis temporarily, but without concrete reforms, words alone appear unlikely to prevent a further disintegration. During the meeting, party workers raised strong voices against the lavish lifestyles of top leaders and corruption they were engaged in. Following a wave of infighting and strong criticism, party Chairman Pushpa Kamal Dahal said yesterday that the party would begin reforms that will go beyond the plenum decisions. His press conference indicated that the party leaders were aware of the consequences if the plenum directives for reforms were not implemented. A senior cadre said failure to implement the plenum decisions would lead to party’s disintegration and that the leaders would have to seek refuge outside the country as they would never be safe here. Independent left intellectual Mumaram Khanal, who was with then CPN-M, claimed that the UCPN-M was in the process of dissolution. He, however, ruled out a repeat of a vertical division like on June 18 when Baidhya decided to sever ties with the mother party. Khanal termed all three leaders — Dahal and two Vice-chairmen Baburam Bhattarai and Narayan Kaji Shrestha — ‘political businessmen’, saying they only work for their benefit, not for the people. “Whatever the top leaders say, the erosion has begun in the party from the bottom,” he claimed. “Soon, the UCPN-M will also become just like Shrestha’s party that had leaders without cadres.” Khanal added that the UCPN-M would have to tie up with other parties to win some seats in the next elections. Mani Thapa, a former revolutionary Maoist leader who has now formed Revolutionary Communist Party, claimed that the main objective of the plenum was to show their strength to the Baidhya-led CPN-M and force them to return home. However, the infighting and cadres’ dissatisfaction with the leadership led to a brawl in the plenum and the cadres hit them with the agenda raised by the Baidhya faction. CPN-M Secretary Dev Gurung echoed Khanal and Thapa. Gurung said the plenum decisions would never be implemented, as ‘Dahal is a man of words, but of no action’. “Can anyone think of befooling people like Dahal who is now using a Pajero instead of a Prado?” questioned Gurung. Thapa said Dahal and Bhattarai could make some senior party leaders scapegoats to save their face. “But that won’t work for long,” he said. He claimed that the unity mantra and their commitment to lead a simple life was nothing but a farce. Despite claiming unity in the plenum, factional politics will resurface again when the party’s general convention organising committee (the committee formed by the plenum by dissolving central committee) begins tomorrow. “The leaders will fight for giving better positions to their loyalists,” Thapa said, claiming that the UCPN-M will not go for national convention if the Baidhya-led CPN-M does not hold its convention. Khanal said the UCPN-M would also end up being a parliamentary force just like the CPN-UML, which according to him is more pragmatic than the UCPN-M. nnnn MAIN OPPOSITION NC DIVIDED OVER ELECTION Kathmandu 24 July: Nepali Congress leaders today said that the fresh elections would be the best alternative to resolve the political deadlock. They were, however, at odds on whether elections should be for Constituent Assembly or Parliament, The Himalayan Times reports. At a meeting organised by the party’s former CA members at Beijing Doc Restaurant in New Banes-hwor, the leaders were also divided on the alternative of CA’s reinstatement. Although, almost all leaders did not rule out the CA’s revival, they said that the prior agreement on the unsettled issues of the new constitution should be the precondition if the revival option is to be opted for. Leaders including Gopal Man Shrestha, Bimalendra Nidhi, Ramesh Lekhak, Gyanendra Bahadur Karki, Kamala Panta, Mohan Bahadur Pandey said that the CA’s revival was the only logical and constitutional alternative to resolve the political deadlock. They said that prior agreement on the constitution issues is must for CA’s revival. While other leaders including Dr Ram Sharan Mahat, Mahesh Acharya, Narahari Acharya and Gagan Thapa said that the Congress should opt for the fresh elections. Dr Mahat said that going for fresh polls of Parliament, which can even work for new constitution. “If there is an agreement on the issues of new constitution, the CA’s revival could be one option,” Dr Mahat added. “As the Interim Constitution does not spell anything on both the options – the CA’s revival and constitution amendment through President for fresh polls – a political decision is necessary for either of the options. So, fresh elections option is the best,” said Acharya. Bimalendra Nidhi said that the fresh CA’s election is the best alternative. “However, the CA’s revival is imperative to amend the interim constitution to clear the way for the polls.” He went to add that it would set a wrong precedent if the constitution was amended by the President under the pretext of removing difficulty. Similarly, Gopal Man Shrestha said that the CA’s revival after holding agreement on the issue of federalism is best option. Nnnn ASSAM COMMUNAL CLASHES BETWEEN BODOS , MUSLIMS KILL AT LEAST 17, CURFEW IMPOSED Kathmandu, 24 July: At least 19 people, including a six-month-old child, were killed and many wounded in fighting between indigenous tribes and Muslim settlers at the weekend in India’s northeastern Assam state, police said today [Monday], Reuters reports from Guwahati Authorities imposed a night-time curfew to prevent more violence and federal troops moved into remote areas to deal with threats of more violence. About 50,000 villagers fled their homes and took shelter in relief camps out of fear, said Donald Gilfellon, a senior civil servant in the Kokrajhar district, adding that 37 camps were set up to help the refugees and more would be opened if needed. Sparking the clashes, unidentified men killed four youths on Friday night in the state’s Bodo tribe dominated Kokrajhar district, police and district officials said. In retaliation, armed Bodos attacked Muslims, suspecting them to be behind the killings. Police said unidentified groups set ablaze houses, schools, and vehicles, firing indiscriminately from automatic weapons in populated areas. The body of a six-month-old child was found by villagers on a river bank along with the body of a woman yesterday, police said. “Seventeen people have died in the violence. Many people have left their homes because of insecurity and they are living in relief camps,” a senior police officer, who asked not to be named, told Reuters over the phone. Ringed by China, Myanmar, Bangladesh and Bhutan, India’s northeast is home to more than 200 ethnic and tribal groups and has been racked by separatist revolts since India’s independence from Britain in 1947. Strong anti-immigrant and anti-Muslim sentiment against Bangladeshi settlers has emerged among Hindu and Christian tribes in recent years. “The situation is tense and more security forces are being sent to far flung areas,” SN Singh, Assam’s inspector general of police, told reporters. Businesses, offices and schools remained closed today and streets were deserted. “We can’t think of going back home. Our village is vulnerable to attacks and the government failed to give us protection,” resident Hiranya Musaharay said by phone from Kokrajhar town where he was staying with relatives. nnnn