SHARES OF NBL TO BE TRADED FROM SUNDAY Kathmandu, 3 Dec.: Trading in shares if Nepal Bank :Ltd. (NBL), Nepal’s first bank launched during the Rana regime, will resume Sunday after nine years following an agreement between the bank and .Nepal Stock Exchange (Nepse), Monday to re-list its 3.8 million units ordinary shares. Government has 41 percent state in the bank and has pumped in Rs. 1.73 billion to increase its capitalization more than nine fold to Rs.4 billion. Nnnn NFC TO BUY RICE DIRECTLY FROM FARMERS Kathmandu, 3 Dec.: Nepal Food Corporation (NFC), wholly owned by the government, is purchasing 34,000 metric tons rice from farmers, General Manager Hari Krishna Shah said. The move comes after reference price of rice was fixed. Reference price of mota and masino rice have been fixed at Rs 1,650 and Rs 1,725 per quintal, respectively. Nnnn CAPITAL’S MORNING TEMPERATURE MONDAY 4 DEGREES CELSIUS Kathmandu, 3 Dec.: Capital’s temperature Monday morning was 4 degrees Celsius. Mercury is expected to rise to 20 degrees Celsius on a clear day in the afternoon. Nnnn ARMY PLAYS HIMALAYAN SHERPA IN FOOTALL LEAGUE CHAMPIONSHIP Kathmandu, 3 Dec,: Himalayan Sherpa plays Tribhuvan Army Club in he Martyrs Memorial Club A Division League Championship Monday. RCT plays NRT in another match. nnnn GOVT. INTERVENES IN DISPUTE INVOLVING CHINESE BANK Kathmandu, 3 Dec : The government has summoned central bank and diplomatic channels to settle the dispute between two domestic banks and China Construction Bank after China´s second largest bank failed to honor international norms on payment of over Rs 1 billion to Nepali financial Institutions, Rupak D. Sharma writes in Republica.. Although it is not a normal practice for state authorities to intervene in matters involving banks, the government is keen on playing a mediatory role on the issue as it has questioned the trustworthiness and integrity of Chinese banks, which may hamper banking and ultimately trade and investment relations between the two countries, a source privy to the issue told Republica. “The government has asked Nepal Rastra Bank to hold talks with its Chinese counterpart and has also summoned its embassy in China to look over the matter. It is making attempts to broker the talks mainly to ensure that such problems do not crop up in future,” the source said. The government also feels it necessary to clear the air, as most of the contractors in sectors ranging from hydropower to telecom are Chinese, and this particular incident has raised many suspicions on them, the source said. The dispute started after China Construction Bank refused to release US$6.2 million and 1.4 million euros to the Bank of Kathmandu, which had provided guarantee against advance payment made by the Nepal government to China Railway 15 Bureau Group Corporation, the contractor for Melamchi Water Supply Diversion Project, for the construction of 26.3km tunnel. At the same time, the Chinese bank also refused to release $6.2 million to Himalayan Bank for guarantee provided against performance bond issued by the Melamchi project contractor. The performance bond is usually issued by contractors in construction projects as a security against job completion, and it guarantees full payment to contract provider in case the contractor fails to complete the project. This is the same with advance payment guarantee provided by the Bank of Kathmandu. Usually, these guarantees, issued by banks located in home country of the contractor, have to secure counter guarantee from banks located in the country where the contractor is working, as most of the contract providers fear financial losses in case the contractor flees. As per this practice, the Chinese bank had appointed Himalayan Bank and the Bank of Kathmandu to offer counter guarantee to the Melamchi contractor. Since both the Nepali banks were working on behalf of China Construction Bank -- which had originally issued the guarantee for the Chinese contractor´s project -- they were fully assured that the Chinese bank would extend compensation if the Chinese contractor failed to complete the project on time. But after the Melamchi contractor was ousted by the Nepal government citing delay in completion of the work, it moved the Chinese court and came up with a stay order for the release of the guarantee amount. But the Chinese bank refused to comply with the court order leaving Nepali banks helpless. “This is a situation beyond our comprehension as such guarantees are unconditional,” Upendra Paudel, CEO of NMB Bank, told Republica, referring to provisions of the International Chambers of Commerce which make release of such cross-border payment mandatory for all banks. Although Nepali banks are yet to release the amount to the contract provider, it is almost sure it would lay claim to the amount. In such a case, the two banks would suffer huge losses. “This incident has questioned the honesty and reliability of Chinese banks, which has compelled us to look at Chinese contractors with suspicion,” most of the bankers that Republica talked to said. The two banks, in the meantime, are set to deploy Chinese lawyers to vacate the stay order. Nnnn CAMPAIGN TO CURB TB MANOJ ADHIKARI POKHARA, Dec 3: In yet another attempt to help prolong the lives of HIV infected people, the government for the first time on Sunday started distributing medicines to prevent those with AIDS from contracting tuberculosis (TB). Tuberculosis (TB) is held responsible for the prevalence of morbidity, mortality, and suffering among people with HIV infection in Nepal. The nationwide campaign to distribute the drug called Isoniazid, which is to used treat tuberculosis (TB) and prevent infection due to contact with tuberculosis bacteria, has started from Pokhara. Health Secretary Praveen Mishra launched the campaign by administering the drug to HIV patients in Pokhara at the Western Regional Hospital. According to Secretary Mishra, the government initiated the campaign to check TB infection among HIV patients as they are highly vulnerable to tuberculosis and the cases of HIV patients succumbing to TB have increased lately. Secretary Mishra also informed that the campaign has been simultaneously started from the five main hospitals in the country. Besides the Western Regional Hospital, Isoniazid distribution service is available at Bir Hospital and Teku Hosptial in the capital as well as at Seti Zonal Hospital. Director at National Center for AIDS and STD Control, Dr Krishna Kumar Rai said that the medicine is very effective in preventing TB infection in HIV patients. "It will help ensure a quality life for the HIV patients as it will reduce the chances of their catching TB," said Rai. He also informed that only those HIV patients who have not already developed TB can use the medicine. The medicine, which is prescribed by the World Health Organization (WHO), is not only effective but also affordable. HIV patients are prescribed to take the 300 mg of the medicine each day for six months. "Researches have shown that after completing the full course of Isoniazid, HIV patients can become immune to TB bacteria for at least five years," Dr Rai informed. According to Rajendra Panta, director at National Tuberculosis Center, TB is one of the leading causes of death among people living with HIV in Nepal, with most of 5000 to 7000 HIV deaths reported annually, resulting from TB infection. "The Isoniazid should not be administered to the HIV patients who are already suffering from TB. The medication is only for those who have been receiving antiretroviral and have not been infected with TB", said Panta. According to the data, there are over 51,000 HIV positive in Nepal, out of which only 8000 are taking ARVs. In the first phase of the campaign, Panta informed that the aim is to provide Isoniazid to those who have been taking ARV. The ARV costs over Rs 200,000 per patient, while the Isoniazid costs less than 3000 for six months. Panta also informed that Isoniazid will be administered to 500 patients in the Western region in the first phase. Panta further informed that pregnant women living with HIV will receive the medicine in the second phase of the campaign. Nnnn ECONOMY TO GROW 4.6 PERCENT Kathmandu, 3 Dec.: Nepal Rastra Bank (NRB) has projected an economic growth of 4.67 per cent for the current fiscal year, despite poor harvest, The Himalayan Times reports. due to the late monsoon and shortage of chemical fertilisers during the harvesting season, and also despite the lack of a budget that could have helped the economy. “Apart from the agriculture sector, industrial and service sectors were also not able to perform better due to the prolonged political transition coupled with structural problems in the economy,” the central bank said in its study report that was formulated after a survey of 42 districts of the country. Despite a 32 per cent increment of finance in agriculture in the last fiscal year, major crops — paddy (-six per cent), maize (-five per cent), wheat (-0.2 per cent) — recorded drop in production, the report said, adding that the overall performance of the agriculture sector — that contributes around 33 per cent to the gross domestic product (GDP) — will, however, be satisfactory. Likewise, industries were not able to utilise half their production capacity in the last fiscal year. “The industries were able to utilise only 58 per cent of their capacity in the last fiscal year,” the report said, “The production of cigarettes, soaps and biscuits have declined. Industrial lending has also increased by 16 per cent.” Increasing labour cost due to frequent strikes, and rising prices of raw materials, have been posing challenges for domestic products to compete in the international market and bridge the ballooning trade deficit apart from product and market diversification. The low confidence of the domestic private sector has also made it difficult to attract foreign direct investment in the country, according to the central bank. “Lack of infrastructure development has also hit the industrial sector hard.” The tourism sector has performed satisfactorily, whereas the real estate sector was still under pressure, though it has contributed more revenue to the government coffer as compared to a fiscal year ago, it said, adding that transportation, communication, education and service sectors have expanded in the last fiscal year. The central bank has concluded that due to the contracting industrial sector coupled with the over exposure of banks and financial institutions in urban areas, and land and housing, financial resources could also not be mobilised efficiently, which will hurt the economy. The central bank’s offices located in Kathmandu, Pokhara, Biratnagar, Janakpur, Birgunj, Siddharthanagar, Nepalgunj and Dhangadi were involved in the study. Nnnn INGEGRITY OF LOCAL DEVELOPMENT REPRESENTATIVES QUESTONABLE Kathmandu, 3 Dec.: Local Development Secretary Shanta Bahadur Shrestha today questioned the integrity of Village Development Committee secretaries, who represent the government at the grassroot level, The Himalayan Times reports.. Speaking at a press meet, he said they can no longer accept pay slips coming from these secretaries without a grain of suspicion. Secretary Shrestha informed that secretary of Saptari district’s Bairawa VDC, Dev Narayan Shah, had furnished pay slips of Rs 1.47 lakh, the social security allowance meant for 49 widows aged below 60 years in January last year. Later, a team under Deputy Prime Minister Narayan Kaji Shrestha, which monitored the district on November 20-24, found that the widows, entitled to a monthly pay of Rs 500, had not received the sum. Secretary Shrestha showed documents that 20 widows, including Jogida Khatun of Bairawa, Saptari, had furnished to show they did not receive any allowance last year. The ministry today suspended Shah and three other VDC secretaries, three engineers and an overseer based in Saptari after finding their involvement in irregularities. It found that Dandha VDC secretary Narayan Yadav, Banainiya VDC secretary Dev Naryayan Yadav and Didhawa VDC secretary Baladev Yadav had misappropriated social security allowance and other funds in their VDCs, according to a press release. Deputy spokesman for the ministry, Dhan Bahadur Shrestha, informed that an in-depth investigation into fake pay slips is on. Engineers Laxmi Prasad Chaudhari, Tej Narayan Bajpeyi, Kishor Shah and sub-engineer Khursed Ikram, all based in Saptari, got suspended after the probe found their involvement in multiple cases of substandard road construction. A similar monitoring in Dhanusha had led to suspension of 18 VDC secretaries and referral of their cases to the Commission for the Investigation of Abuse of Authority for a further probe. Secretary Shrestha said the team had sought an investigation in all 91 VDCs of Dhanusha anticipating rampant corruption there. It is not a case of one or two districts, though. During its monitoring, the team found that Kathmandu Metropolitan City and Kathmandu District Development Committee to have awarded tenders for parking lot management without public notice and renewed the contracts without adhering to KMC rules. Deputy spokesman Shrestha cited the absence of elected local bodies as the major reason behind rampant corruption. Nnnn PRACHANDA SON SAYS HE’ NOT MARRIED TO BINA Kathmandu, 3 Dec.:UCPN (Maoist) Chairman Pushpa Kamal Dahal's son, who was suspended from the party over his illicit affair with a student leader of the party, has said that he is not married to Bina Thapa Magar . However, Dahal Jr admitted having close relations with Bina, leader of UCPN (Maoist) aligned student wing, The Kathmandu Post writes.. "I have never said I am married to Bina," said Dahal Jr. in an interview with BBC Nepali Service. "No matter how my affair with Bina has been reported in the media, this is just a personal affair that can happen in a person's life," he added. According to BBC Nepali service, Prakash was interviewed at India Gate in Delhi amid speculations that he has returned to Nepal. Prakash, 31, divorced once earlier, has a son with his second wife Srinaja Tripathi of Pokhara. He had elope d with Bina in July. "I was a little tensed after Srijana (his legal wife) went to her parental home over the media reports that defamed me following my return from Everest trip," Prakash said about his second wife. "I should have divorced with Srijana before starting this (with Bina)," said the Maoist chairman's son. He conceded having made the mistake in accepting third wife without giving divorce to his second wife. "I have made mistake in the process," he said. However, Dahal Jr. said he will return to Nepal and take up the party responsibilities as soon as the controversy over the affair ends. Prakash and his partner Bina were suspended from the party on the recommendation of Chairman Dahal after the media splashed with reports of their elope ment in July. nnnn