NEPAL FARES BADLY IN LONDON OLYMPICS CONCLUDING LATER SUNDAY Kathmandu, 12 Aug.: Nepal fared badly in the London Olympics 2012 that concluded later Sunday in the British capital. A five-member squad participated in the Games. Most of the participants didn’t even break personal or national records. Brazil hosts the next Games four years later. nnnn STANDOFF BETWEEN GOVT. AND LPG DELERS Kathmandu, 12 Aug.: The government and Liquefied Petroleum Gas (LPG) entrepreneurs have failed to end the ongoing strike in LPG trade called by LP Gas Industry Association Nepal after the association stopped receiving Product Delivery Order (PDO) from August 7, to fulfil its 16-point demand, The Himalayan Times reports “The talks slated today between Nepal Oil Corporation (NOC) and the association did not take place due to the strike called by transporters,” said general secretary LP Gas Industry Association Nepal, Kush Kumar Malli, adding that the association and NOC will hold talks tomorrow. Secretary at the Ministry of Commerce and Supplies Lal Mani Joshi, however, said the government would not accept even a single demand of the association unless they unconditionally ended the strike. “The Home Ministry will impose Essential Service Act on LPG trade tomorrow,” he said, adding that the government will take action after it is endorsed. Consumers have been at the receiving end because the government is indifferent and entrepreneurs are commission-oriented, said consumer rights activist Jyoti Baniya. The strike has created panic among consumers, he said. “Bottlers have syndicated the LPG trade for decades against existing legal provisions, but all that the government can do is fulfil their demands.” The strike called by bottlers is in apparent breach of Consumer Protection Act, Black Marketing Act and verdict of the Supreme Court, which according to Baniya had directed the government to utilise government corporations to keep the gas supply smooth.” Baniya suspected the motives of ministry official since they had delayed issuing the Essential Service Act on LPG trade. “Had the government taken steps control carteling, the Essential Service Act would already have been in place,” he said. Nepal Oil Corporation and Ministry of Commerce and Supplies have started talks with agitating LP Gas Industry Association on the association’s 16-point demand, he said, adding, what we now have is a ‘clumsy drama’. Should the government take legal action against culprits or solve problems through negotiations, he questioned. “The government is trying to give the wrong message that talks between agitators and its agencies is above legal provisions and even that of the court.” The bottlers oppose the idea of introducing different colour cylinders for domestic and industrial use. Baniya said that the government sitting for talks with the bottlers is akin to allowing them to sell at black market prices. “It is shameful that NOC is trying to solve the problem with those who want to operate the black market openly.” Petroleum business is the only business where there is no risk of loss, Baniya said, “Yet, entrepreneurs have been demanding increase in commission rate.” In the petroleum business, NOC bears all the loss but provides lucrative commissions to entrepreneurs. LPG entrepreneurs’ syndicate has become powerful, though, in principle, Nepal Oil Corporation (NOC) enjoys monopoly of the petroleum business, Baniya said. nnnn INSURANCE AGENTS, INSURERS SEEKTO REVOKE CAP ON INCENTIVES Kathmandu, 12 Aug.: Insurance agents and insurers are trying to get the regulator to revoke the cap on incentives, but the insurance regulator is unlikely to oblige. “We are holding discussions with insurance companies to figure out the best possible way so that thousands of agents do not suffer,” said secretary of Life Insurance Agents Association of Nepal Krishna Prasad Acharya. Starting from the current fiscal year, the Insurance Board (IB) had dictated that incentives being provided to insurance agents along with business promotion should be limited to a maximum of six per cent of the annual gross premium income. Calling the cap on their incentives impractical, the life insurance agents have stopped taking new clients as a protest against such limitations. “However, we are yet to call for a widespread strike. At present, agents are not taking any new clients voluntarily to express their discontent, but if things do not work out we might opt for a strike,” pointed out Acharya. “Though not all agents have stopped selling policies, the number of policy sales has definitely been affected due to the ongoing protest,” said chief executive of PrimeLife Insurance Company Restha Jha. The insurance regulator capped the incentives being doled out by insurance companies to their agents to bring down the expenses of the firms, as the financial burden had started to strain their income. “We decided to cap the incentive, especially, to curb the tendency of agency system that hires sub-agencies to bring in more clients. Such a multi-layered agency system had resulted in companies paying more to the agencies besides the commission,” said chairman of IB Prof Dr Fatta Bahadur KC. Though the general agency system for insurance marketing is widely accepted worldwide, the regulator is wary about increasing costs to maintain such insurance agents. IB has already fixed the commission rate that agents can be paid based on the maturity period and type of policies ranging from 10 per cent to 25 per cent of the total premium amount. In addition to the commission rate, the insurance companies have been paying more as incentives mostly to retain the agents. “In some cases, companies were found to have spent 92 per cent of the first year’s premium income to pay for agents, and if this trend persists, companies will be in trouble in the long run,” he added. There are about 90,000 licensed insurance agents working in the Nepali life insurance market for nine life insurance companies, along with about 1000 non-life insurance agents. nnnn MAOIST CHIEF FLOATS TWO OPTIONS TO END IMPASSE Kathmandu, 12 Aug.: UCPN (Maoist) Chairman Pushpa Kamal Dahal has floated two major options to end the current political stalemate saying his party was for either to move ahead as per the five-point deal between the major political parties or for a new deal for elections by forming a election-government, Republica reports. Dahal, however, made it clear that his party would not accept the leadership of Nepali Congress (NC) in the election government at any cost. In the five-point agreement, the major parties had agreed to resolve the disputes in constitution writing and then form a national consensus government under the leadership of Nepali Congress (NC). But later, it couldn´t be implemented as disputes over federalism deepened and the Constituent Assembly (CA) saw its demise on May 27. "One of the solutions is to follow the five-point deal. As per the deal we accept NC leadership in new government. But prior to that we have to resolve the remaining disputes in constitution writing, revive the CA and then promulgate new statute and form new government from the same legitimate body," Dahal said at a round-table meeting attended by leaders of dozens of political parties, which was convened by newly-formed CPN-Maoist. He said if the parties can agree on this option, UCPN (Maoist) was ready to quit the government and form consensus government under the NC´s leadership. But he believed that other parties were already drifting away from that option and they wouldn´t be ready for that. Dahal argued that the new polarization between the pro-federalists versus anti-federalists was further complicating the political scenario. "The NC and CPN-UML themselves are gradually showing interest to go for fresh polls," he said. "But five-point deal can no longer be the basis for forming election-government." He claimed that if the political parties opt for fresh elections, a new agreement should be reached based on the changed context and that any of the political parties may claim the leadership of the election-government. "Let me make it clear that we will not accept the NC leadership in the election-government," he said. "Why only the NC and why not others?" Another option floated by Dahal is to form an election-government headed by an independent personality such as former justice, civil society leader or a leader from a small political party. He reiterated that such a government can´t be led by a leader from any major political force. Earlier at the same function, NC Vice-President Ram Chandra Paudel said his party was ready to take a political course set by the five-point deal. "But it [five-point] shouldn´t be the only basis. Also other relevant latest deals and understandings such as seven-point agreement reached among the major parties should also be taken as bases for reaching the new deal," said Paudel. Stating that the country was pushed to a state of constitutional void, he reiterated on seeking a constitutional way out prior to taking any decision. "We have constitutional hindrances either to go for fresh polls or seeking any other solution," he explained. "So, our first priority should be to bring the political course on to the constitutional path." UML Chairman Khanal was for ensuring that the agreements reached and works done so far in constitution writing are given a final format so that the works done so far by the CA will not be go back to square one. "Then, we have to agree on the way forward. Let´s decide whether we go for CA revival or for fresh polls. Also be clear which election we are going for-- for parliament or for CA," he said. However, he reiterated that Prime Minister Baburam Bhattarai´s resignation must come first. "The prime minister´s exit can only pave the way for any new deal," he said. On forming alliance, Dahal said it had become essential to form an alliance of the political parties, organizations and individuals who were for adopting a federal model based on ethnic identity. He claimed that only such a coalition would create an environment conducive for forging national consensus. Dahal also said other parties including NC and UML can form such an alliance bringing together like-minded parties and groups and that no one needed to worry over such initiatives. "If other parties can form similar alliances, why is the alliance led by UCPN (Maoist) unacceptable to others? It shouldn´t be the case," he said. However, Paudel expressed his serious objection over the Maoists´ projection of other political parties as anti-federalist forces. "This is political dishonesty [on the part of Maoists] to claim themselves as pro-federalists and portraying others as anti-federalists," Paudel said. "I urge them to stop such a dishonesty." Nnnn ________________________________________ RUKMA SHUMSHERE RANA PLEDGES TO COOPERATE WITH NSC Kathmandu, 12 Aug.: Rukma Samsher Rana-led Nepal Olympic Committee (NOC) held an extra-ordinary general assembly on Saturday and announced it would cooperate with National Sports Council (NSC). Rana-led NOC, which was reinstated by the Supreme Court in November 4, 2010, has been gearing up to strengthen its organization after National Sports Council (NSC) received a direction from the Verdict Execution Directorate of the Supreme Court last week and vowed to support the Rana-led NOC. Two different NOCs -- one led by Dhruba Bahadur Pradhan and other by Rana -- have been staking their claim for a few years and the Supreme Court had decided to recognize the Rana-led committee while International Olympic Committee (IOC) has been recognizing Pradhan committee. The general assembly on Saturday requested NSC to execute Supreme Court verdict and help the Rana-led NOC to use all the properties of NOC, currently being used by Pradhan-led committee. The assembly assigned Rana to coordinate for establishing relations with IOC and Olympic Council of Asia (OCA). On Friday, IOC´s National Olympic Committee Relation Chief Jerome Poivey said that there is only one NOC recognized by the IOC and that is non other than the one led by Pradhan. Meanwhile, the general assembly on Saturday passed a resolution that the NOC would announce a date for electoral general assembly if the seven national sports associations, which were dissolved by then NSC Member Secretary Jeevan Ram Shrestha is reinstated. Rana-led NOC has been alleging Shrestha, currently general secretary of Pradhan-led committee, of dissolving national associations like All Nepal Table Tennis Association, Nepal Badminton Association, Nepal Handball Association and Nepal Weightlifting Association to make his way to NOC. Earlier, NSC Member Secretary Yubaraj Lama in his inaugural speech had said that holding new election with the participation of all the national associations of Olympic sports could be the only way to resolve current controversy. Lama alleged Pradhan-led NOC of defining Olympic Charter in a wrong way. "Whenever we take initiation to resolve controversy, they start talking about Olympic Charter. The Olympic Charter demands periodic election of all associations but Pradhan-led NOC has been violating it for few votes. Shouldn´t they follow Olympic Charter?" questioned Lama. He said that Pradhan-led NOC should stop challenging government and laws of land in the name of international affiliation. "If they don´t respect the law of land, where would they run their office? Will they run office in Raxaul or Lhasa?" challenged Lama. Ready to talk with Pradhan-led NOC However, Member Secretary Lama said that NSC would hold a meeting with Pradhan-led committee right after its President Pradhan and General Secretary Shrestha return from London Olympics. "We are ready to talk with them for solving the controversy," said Lama. Rukma Samsher Rana, president of the reinstated committee, said that he wants to end the controversy and ready to make sacrifices from his side. "I´m ready to talk with the other committee and make sacrifices from my side but it should be from both the sides," said Rana to Republica. However, Rana-led NOC´s Treasurer Purushottam Lal Shrestha said that they would sit for talk with Pradhan only as the representative of IOC and OCA but not as a president of the other NOC body. Olympic rings were covered Though Rana-led committee has been claiming to be the only NOC body in the country, they did not use Olympic rings in their logo during the general assembly. They have removed the rings from the banner with remover. IOC says only the committee that is recognized by the international body can use the rings and the name. "We can´t ignore IOC and its statement. Meanwhile, Pradhan-led NOC cannot not ignore the Supreme Court verdict. If we sit for a talk, we have to find a middle ground to solve the controversy," said Rana. Participation The NOC-controversy has ignited polarization in Nepali sports and factionalism within national sports associations. President and officials of Nepal Taekwondo Association, Nepal Weightlifting Association and Nepal Shooting Association took part in the general assembly. Likewise, a faction each from Nepal Boxing Association, Nepal Table Tennis Association and Nepal Hockey Association were also present at the general assembly though their presidents are holding positions in Pradhan-led NOC. nnnn MEDIA GOOGLE “The NC and UML caused rift among Madhesis, Tharus and Muslims in the past, but in the run-up-to May 27, these communities united. Indigenous nationalities also formed an alliance with Madhesis. So, now the NC and UML feel defeated,” “Dan Bahadur Chaudhari, General Secretary, Tarai Madhes Democratic Party (Nepal), The Himalayan Times, 12 Aug.) …CPN-UML central member Ajambar Kangmang dubbed the Nepali Congress, UCPN-M and his own party as failed parties, and went on to argue that there is no use of the Janajati leaders staying in the parties that are entirely run on the Brahmin ideology. (Report in The Himalayan Times. 12 Aug.) , “Ruling parties suspect that the head of the state is endeavouring to unseat the government by exceeding the constitutional limits. President Yadav’s frequent meeting with the opposition parties indicates that he is trying to play an active political role.” (Minister Rajendra Mahoto, The Himalayan Times, 12 Aug.) i Nnnn ________________________________________