Many of the victims of loan sharks who have been demonstrating in Kathmandu for the past months took high-interest loans that multiplied their debt. But among them are also families who are being forced by fraudsters with forged documents to repay money never borrowed. Here are some of them: Rajaram Sahani&nbsp; Rajaram Sahani lives by the highway in Rauthat district. Property prices have soared because of the proposed Nijgad airport, and land grabbers are targeting innocent farmers. One hot afternoon six years ago, he was handed a legal notice from the District Court that he had not paid back interest and capital on a loan for Rs637,000 from his neighbour, Trailokya Chandra Sahani. “He had lodged a complaint in the court saying I had not paid back a loan I never took, and he was demanding my land as compensation,” Rajaram says. Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230721050732_2dd1169402bcf3353cf99d618e7c7c71e7aa711f1423f5bba39e33932d897e58.jpg" data-media-id="editor_1" data-image-id="20230721050732_2dd1169402bcf3353cf99d618e7c7c71e7aa711f1423f5bba39e33932d897e58" data-rendition-name="original" width="2250" height="1500" loading="lazy" alt="Rajaram and family"> <figcaption> </figcaption> </figure>  He then took the rubber print and his live fingerprint to a forensic lab in Lalitpur where technician Mukul Pradhan confirmed that although the two prints looked alike, one of them was not a real thumb. With this proof, Rajaram returned to the District Police in Rautahat and showed it to Superintendent Siddhi B Shah. But because the process of investigation would take more than the 24 days that the fake print maker Trailokya Sahani could be legally detained, he was not arrested. &nbsp; Rajaram then submitted a complaint to the court which sent the prints back to the forensic lab to again determine if they were rubber prints. A 3-member investigation team that included the same Mukul Pradhan, police DSP Udaya Jung Rana and Biswa Raj Poudel determined that the lab did not have the necessary equipment to confirm the authenticity of the rubber print -- even though two of its members had earlier said it was fake. Read also: <a href="https://www.nepalitimes.com/news/till-debt-do-us-part">Till debt do us part</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230721050736_2035fdcd81be4e0236fc0977548645722d35ba5d898b0fbc96dedd493f3a2a9e.jpg" data-media-id="editor_3" data-image-id="20230721050736_2035fdcd81be4e0236fc0977548645722d35ba5d898b0fbc96dedd493f3a2a9e" data-rendition-name="original" width="780" height="1040" loading="lazy" alt="Rajaram loan"> <figcaption>Loan document with fake fingerprints of Rajaram Sahani.</figcaption> </figure>  The District Court judge Keshav Kumar Pandey ruled that Rajaram was guilty, and ordered he pay back the interest and capital on a loan he never took that now had grown to Rs4.83 million.&nbsp; Rajaram’s appeal is sub judice at the Birganj High Court, and he has nothing left to lose and is at the sit-in in the capital against loan sharks.&nbsp; Ram Ishwor Sahani The life of Sarlahi fishmonger Ram Ishwor Sahani and his family was &nbsp;irrevocably changed when Naresh Kumar Sahani of Gaur filed a case against his 60-year-old mother Malbhogia Kumari for failing to pay off a loan of Rs2 million.&nbsp; The plaintiff requested the court to seize Malbhogia’s property if she failed to pay the 10% interest on her loan within the next 45 days. Not only had Malbhogia never borrowed any money from Naresh, neither she nor her family had ever met or heard of the loan shark. Her son suspected that her mother’s fingerprints might have been misused. Read also: <a href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank">Some are more equal than others</a>, Anil Chitrakar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230721050740_c5f4b1cadeb323565450a0359db648daa07d861dc5ba5edc6de7248df904f7a3.jpg" data-media-id="editor_5" data-image-id="20230721050740_c5f4b1cadeb323565450a0359db648daa07d861dc5ba5edc6de7248df904f7a3" data-rendition-name="original" width="1000" height="750" loading="lazy" alt="Rajaram and Ram ishwor"> <figcaption>Ram Ishwor Sahani (left) and Rajaram Sahani.</figcaption> </figure>  The court ordered a lab analysis of the fingerprint on the loan document against Malbhogia’s own thumb prints, and they did not match. But as soon as the results came out, Naresh successfully filed a petition to withdraw the case without facing any consequences. Ram Ishwor’s mother is elated, but her son has not found any comfort. The court case had dragged on for two years, and he had had to place his land on collateral during that time. &nbsp; “I feared that we would be made homeless,” he explains. He is now planning to file a forgery case against Naresh Kumar Sahani, and is in Kathmandu demanding justice. Baiju Saha Kanu Baiju Saha Kanu of Rautahat was vindicated in a similar case involving fake fingerprints, after which he filed a forgery case against his neighbour Ram Binaya Shah, who had taken Baiju to court.&nbsp; But Ram Binaya was let off with a Rs30,000 fine, a mere slap on the wrist, and his brother took revenge by filing another fraudulent case against Baiju’s son, dragging the family to court once again.&nbsp; “Had he been sent to prison the first time around, neither he nor his family would have had the courage to commit a similar crime,” says Baiju Shah. Read also: <a href="https://www.nepalitimes.com/here-now/nepal-s-tax-system-widens-rich-poor-gap">Nepal’s tax system widens rich-poor gap</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230721050740_882b93bb910ad96445934e317ab3bc57f07948bc25ea7c150a2b54b74c656a2a.jpg" data-media-id="editor_7" data-image-id="20230721050740_882b93bb910ad96445934e317ab3bc57f07948bc25ea7c150a2b54b74c656a2a" data-rendition-name="original" width="831" height="1170" loading="lazy" alt="Baiju"> <figcaption>Loan document with fake fingerprints of Baiju Saha Kanu.</figcaption> </figure>  Dilli Kumari Karki Dilli Kumari Karki from Milan Chok in Rautahat lost her 11-year-old daughter Akrita Basnet who committed suicide last year. She believes it was because of the mental torture the family had to endure from loan sharks who were blackmailing them.&nbsp; Seven years ago, Karki borrowed Rs60,000 from Rural Development Bank to open a clothing store. To expand the shop, they also borrowed Rs100,000 from a neighbour, Namrata Lama, a local tailor.&nbsp; Three months later, Karki’s husband Sukram Basnet decided to become a cosmetic dealer and borrowed an additional Rs350,000 from Lama which the couple managed to return eventually after four months. Later, Lama asked Karki for a blank cheque in her name “just for recordkeeping”.&nbsp; Innocently, Karki gave her the signed cheque, and Lama told to her make another one because she “signed it incorrectly” the first time. Soon, Lama started demanding Rs1.5 million which she added herself on the blank cheque. Karki refused saying she had already repaid her loans, but Lama threatened to bounce the cheque.&nbsp; Read also:<a href="https://www.nepalitimes.com/editorial/nepals-political-economy/"> Nepal’s political economy</a>, Editorial  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230721050744_d01cb7e3378fde3fe41a2f8a26ab8c803810063b40eb6c871e1090722d999ac3.jpg" data-media-id="editor_9" data-image-id="20230721050744_d01cb7e3378fde3fe41a2f8a26ab8c803810063b40eb6c871e1090722d999ac3" data-rendition-name="original" width="1500" height="920" loading="lazy" alt="Dilli NT"> </figure>  Fearing prosecution, Karki started borrowing money from other lenders to pay Lama. But after paying Rs1.5 million, Lama said that was just the “interest” and that Karki still owed the “principle” which amounted to Rs450,000. When Karki refused, she brought the other blank cheque to threaten her. So she kept on paying “interest” which has now added up to Rs4.5 million. When Karki tried to sell the family property to pay for the cancer treatment of her mother-in-law they found that Lama had forged land ownership documents, forcing them to reach a settlement by paying off another Rs250,000.&nbsp; Karki then tried to sell her own land to get out of the mess. But the middle men tried to threaten and blackmail the family in front of the children. After one such altercation, Karki left for Kathmandu and heard three days later that her daughter had hung herself in her room. Lama used to call Karki on multiple numbers but when this reporter tried them, she was never available. Read also: <a href="https://www.nepalitimes.com/news/first-the-good-news-sgm1d4u4">First, the good news</a>, Ramesh Kumar Post-script: Section 249 ‘A’ of Nepal’s Civil Code was amended through an ordinance in May to make unfair transactions punishable by seven years imprisonment and a fine of up to Rs70,000. A replacement bill was passed by parliament in June. But loan shark lobbies close to the JSP have demanded that the bill be repealed, staging counter-protests at Maitighar. In Rautahat alone, there have been 1,811 loan cases in the last fiscal year, 90% of which involve forgery and misuse of fingerprints. In May, the government formed an inquiry commission to address victims of loan sharks under former Special Court Chair Gauri Bahadur Karki, and 24,000 complaints were submitted, most of them from Madhes Province. Indeed, loan sharks have formed a syndicate in Madhes Province specialising in obtaining fingerprints from official documents and making rubber impressions, forging loan documents, bribing court and forensic officials and obtaining customised lab reports from the National Forensic Science Laboratory in Lalitpur. Read also: <a href="https://www.nepalitimes.com/here-now/crime-and-or-punishment-in-nepal">Crime and/or Punishment in Nepal</a>, Sonia Awale Reporting by: Centre for Investigative Journalism-Nepal, Man Bahadur Basnet, Sagar Chand, and Archana Darji

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Matter of life and debt

<figure></figure>										<img width="1698" height="1176" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109151112/636bb58f9c7e80680e07bc0djpeg.jpg" alt=""/><figcaption>Illustration: CIJ NEPAL</figcaption>												Top secret documents prepared by the US government’s Financial Crimes Enforcement Network (FinCEN) and leaked to the media have revealed $2 trillion in suspicious money transfers, and include files that involve some of Nepal’s top banks.The information is contained in ‘Suspicious Activity Reports’ (SARs) sent by banks to the American financial watchdog between 1999 to 2017, and most involve transactions with countries on which the US has imposed sanctions, like Russia, North Korea, Iran and Cuba, or Chinese companies which Washington has blacklisted. Some of these SARs involve transfers through Kathmandu-based banks, and by Nepali firms a few of which appear to be front or fake companies, or ones that are defunct. Banks report transactions when they suspect that money laundering or criminal activity is suspected, but they do not necessarily mean that the companies or individuals named have broken the law.The Nepal files contain transactions made through nine banks, 10 companies and other individuals between 2006-2017 and include some of the big names in banking. However, the companies are less well known, and some of the individual names appear to be security guards or Nepali overseas workers sending money home. Even so, some of the Nepal-based companies named appear to have been involved in smuggling gold, antiquities, or trading in asphalt and telecommunication equipment. The transactions flagged in the FinCEN leaks in Nepal were through Standard Chartered Bank, Prime Commercial Bank, Bank of Kathmandu, Nepal Investment Bank, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank.The leaked documents contain the names of 10 little known Nepal-based companies including Rauniyar Brothers &amp; Co of Birganj, Subha Samriddhi Traders Pvt Ltd of Kathmandu, Shasta Trading Company, Setidevi Export Import Pvt Ltd, L D International Pvt Ltd, Felt and Yarn Pvt Ltd, Woman’s Paper Crafts, Acme Money Transfer Service, and Sunny Enterprises. Some these were never registered, others appear to be front companies, and some are closed. Of the nearly $300 million worth of transactions through Nepal that were flagged in the FinCEN documents, $177.6 million were bank transfers of which $103 million were transferred out of Nepal and $74.6 million were remitted into the country. There were also $48.2 million worth of possibly illegal transactions in various countries with Nepal links, and another $75 million transactions not in Nepal, but involving Nepali-sounding surnames and addresses. Most of the transactions in the FinCEN leaks that raised red flags, including those by Rauniyar Brothers and Shubha Shambridhi Traders, involved over $70 million in Letters of Credit through Standard Chartered Bank in Nepal and its branches abroad. The Rauniyar transactions went through the Dubai-based Kite International FZE, and involved import and export of petroleum products. They were sourced from Bandar Abbas port in Iran in contravention of US-sanctions, and the shipment documents were reportedly forged to look like they came through Dubai.When asked to respond, Pranu Singh of Standard Chartered Bank Nepal said the bank was bound by client confidentiality and did not comment on specific cases. ‘The reality is that there will always be attempts to launder money and evade sanctions,’ she wrote in an email reply. ‘We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programs.’  The other companies involved appear to have been involved in using banking channels to fund gold smuggling operations via jewellery companies in Hong Kong and Dubai between 2009-2011. Some banking transactions appear to have been listed in the SARs because they involved Chinese telecommunication company ZTE that is on a US blacklist, while others were  transfers from Nepal to known tax havens like the British Virgin Islands, Seychelles and Luxembourg.  The leaked files also include transfers of amounts as small as $120-500 to Nepali companies and from Nepali workers in Iraq and other countries that for some reason were in the suspicious activity reports sent by corresponding banks as long as ten years ago. However, some of the companies listed, like Woman’s Paper Crafts, are not even officially registered in Nepal.Two separate reports in the FinCEN leaks concern possible payments for smuggled Nepali religious artifacts. Standard Chartered Bank New York flagged American Nancy Wiener Gallery and several other dealers suspected to be involved in the illegal trade of antiquities. Some of them were linked to Subhash Kapoor, an Indian national and the Art of the Past Gallery owner in New York, who used to facilitate artifacts smuggling from India to the United States. He was arrested by Interpol in 2011 at Frankfurt airport.Nancy Wiener Gallery was cited in the FinCEN leaked files for suspicious transactions worth $27 million between 2010-2017. This is the same gallery that sold a stolen 16th-century bronze from Nepal in 2010 and transferred the payment to Pantheon Worldwide in Hong Kong. The bank that filed the suspicious activity report said: ‘The transactions appear to be related to antiquities that were potentially purchased and sold illegally.’Nepal’s Money Laundering Prevention Act requires banks and financial institutions to report suspicious transactions to the Nepal Rastra Bank’s Financial Information Unit (FIU). The Act bars clients from making transactions under anonymous or fictitious names. Financial institutions also need to keep a separate record of transactions of high-ranking officials in the political, administrative, and judicial spheres. Although some of the suspicious transactions in the FinCEN report are dated, there appears to be a gap in the way Nepal’s banking sector monitors international transfers. This poses a serious challenge, and could push Nepal towards an international blacklist of high-risk countries.Nepal Rastra Bank Governor Maha Prasad Adhikari says Nepal has enacted laws against money laundering and has set up a Financial Information Unit (FIU) at the central bank. “However, having legal provisions doesn’t mean that money laundering will not happen. We don’t claim that we are good at implementing laws, but it’s getting better as time passes,” Adhikari added. “We have fined six banks and financial institutions for mishandling Know Your Customers forms and failing to monitor and report money laundering. Nepal Rastra Bank is committed to preventing money laundering. There won’t be any ifs or buts.”The latest ‘<a href="https://www.buzzfeednews.com/article/jasonleopold/fincen-files-financial-scandal-criminal-networks" target="_blank" rel="noopener noreferrer">FinCEN Files</a>’ contain top secret financial records obtained by BuzzFeed News and shared with the <a href="https://www.icij.org/investigations/fincen-files/" target="_blank" rel="noopener noreferrer">International Consortium of Investigative Journalists (ICIJ)</a> and other news organisations. In Kathmandu, follow up investigations were conducted by the <a href="https://cijnepal.org.np/fincen-files-nepal-nexus/" target="_blank" rel="noopener noreferrer">Centre for Investigative Journalism Nepal (CIJ-N)</a>.Krishna Acharya, Ramu Sapkota and Shiva Gaunle. Arun Karki and Pramod Acharya also contributed to this report.Centre for Investigative Journalism Nepal

Nepal figures in leaked money laundering report

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bae749c7e80680e077ff4jpeg.jpg" alt="" width="1600" height="900"/>Last September, contractor Sujan Poudel filed a complaint at the Commission for the Investigation for the Abuse of Authority (CIAA) against police deputy superintendent Shyam Kumar Rai, accusing him of soliciting a bribe. The CIAA decided to catch Rai red-handed in a sting operation.A month later, Poudel went to Rai’s office and surreptitiously planted Rs140,000 in cash in the police officer’s drawer. Immediately after, officials from the CIAA who were hiding outside barged into the office and arrested Rai.The media ran the news: ‘DSP Rai arrested with Rs140,000 bribe money’. The CIAA took Rai under custody and filed a corruption case at the Special Court. In his statement, Rai accused Poudel of framing him because he had taken action against the contractor for illegal sand mining and quarrying.As evidence, the CIAA had submitted a video footage of the cash in Rai’s drawer. But when police examined the video, they found that the CIAA team seemed to know exactly where to look for the cash. “Take out money from the drawer,” a member of the CIAA team is overheard saying.The Special Court analysed the video, and ruled that Rai had indeed been framed by Poudel. The justices said in their judgement: “It seems the CIAA has worked at the behest of special interest groups unhappy with a strict ban on illegal sand extraction,” said one of the judges of the fast-track court established to deal with corruption cases.Pralhad Dhital, an assistant forest officer of the Kavre District Forest Office, was attending a training organised in Kathmandu last month when Jagatlal Tamang, an entrepreneur of Kavre, repeatedly telephoned him asking for a meeting. Tamang came to Kathmandu and the two went out to a cafe. At the table, Tamang abruptly put Rs20,000 in Dhital’s hand, and suddenly CIAA officials lurking nearby pounced on Dhital.The media reported: ‘Kavre Forest Official Caught Red-handed accepting Bribe’.Tamang later confessed that he had indeed decided to frame Dhital after he refused permission to fell 56 pine trees in a private property. He added that CIAA officials helped him write his application and showed him how to carry out the sting operation. As with many other cases, Tamang framed Dhital with the active collusion of the agency mandated to fight corruption. Dhital was suspended from his job.Not only does this show that media headlines about corruption may be misleading, it has also exposed questionable practices at the CIAA. Records show that the anti-corruption agency is regularly using sting techniques in petty offences to catch small-time criminals. Last November the agency arrested traffic policeman Nabin Kumar Jha of Dhanusha, while receiving a Rs1,000 bribe. Jha was arrested shortly after receiving ‘bribe’ planted on him by a CIAA driver.In Kaski the CIAA’s Pokhara Regional Office acting on a complaint, planned a sting operation against land revenue officer Dipak Subedi by getting an official posing as someone needing a job done. Subedi was caught while accepting a Rs3,000 bribe from an undercover CIAA official, and agency filed a case against him.The CIAA has even conducted a sting operation to arrest a messenger at the Land Reform Office in Itahari. In a clear case of entrapment, it offered Arjun Mandal Rs2,000 for a service, which he accepted. He was arrested and charged.Instead of going after officials and politicians who embezzle billions with impunity, critics say, the CIAA is targetting corruption. They say the agency is carrying out these operations so it can boast about the number of corruption cases it has cracked. Indeed, the CIAA’s annual report for 2018-2019 cites ‘a record number of corruption cases’.At a press conference in January, CIAA spokesperson Pradeep Kumar Koirala patted himself on the back by saying that the agency had performed “a great achievement” by busting so many corruption cases. Out of 351 graft cases filed by the CIAA last year, 147 were bribery and of these in 40% the accused was apprehended using sting tactics. This year, the number of sting operations has shot up to 181 cases – of which half were cases involving less than Rs25,000 in bribes. Of the total 277 arrested 69 were junior civil servants and 16 were messengers and peons.“Previously, cases of fake academic credential used to top other corruption cases,” said Gauri Bahadur Karki, former chair of the Special Court, ‘these days, they have been replaced by sting operations.”Details of the CIAA’s own annual report reveal that the powerful constitutional body that is entrusted with controlling graft and malfeasance in government and ensure good governance is busy with petty bribes, and arresting junior-most government employees.The CIAA is obviously taking the easy way out to fulfil its case quota, while trying not to ruffle any feathers. It is not going after powerful officials involved in tax evasion, investigating ill-gotten wealth, or following the money trail in corruption involving senior officials. It is enticing low-level officials who put their hands in the honey pot.“CIAA has not followed the instructions of parliamentary committees to go after big fish in high-profile cases like the Airbus deal, Ncell tax and Yeti Holdings. None of those scams were investigated, but it is targeting petty corruption just to show that it is meeting targets,” said Karki.The sting operation has raised ethical issues of whether entrapment is an acceptable way to nab public officials. Should the CIAA even be tempting junior bureaucrats by using a bribe as a trap. Is it even legal?As per Article 239 of the Constitution the CIAA can investigate wrongdoings of any public position holder and file corruption case against them if charges are established. Section 30 of the regulation states that the CIAA can provide money to informers if any public position holder seeks bribe. But there is no provision of legal action against bribe receivers and providers.The CIAA has been using this Section to conduct sting operations whereas Section 3 of Corruption Prevention Act-2002 clearly states that both bribe receivers and providers should be punished for bribery. Ironically, this may actually make the CIAA also liable for corruption.“CIAA can file corruption case if someone is caught taking a bribe,” said constitutional expert Bhimarjun Acharya, “but a constitutionally empowered body’s involvement in using cash to trap someone is not really acceptable matter in any civilised society, and it goes against the rule of law.”Another advocate Bishnu Prasad Ghimire argues that the CIAA’s sting operation is guided with the intent of improving its success rate in controlling corruption by trapping citizens.  “State agencies should not be involved in such activity, and the use of state coffers to entrap citizens is not acceptable,” said Ghimire.Ghimire says sting operations by a state agency is actually illegal and objectionable. As per Nepal’s criminal law, only Parliament can determine which act is a crime and which is not.Acharya recalls that sting operations have been used in the United States and India, but the courts there have set a precedent by annulling the provision of providing money to trap criminals. He says as democracy with the rule of law, Nepal should follow that practice.The US Supreme Court in <a href="https://supreme.justia.com/cases/federal/us/503/540/" data-saferedirecturl="https://www.google.com/url?q=https://supreme.justia.com/cases/federal/us/503/540/&amp;source=gmail&amp;ust=1595658441786000&amp;usg=AFQjCNH07kw3Z3XtVIHIDEfMKSIkPMbtAg">an order issued on April 1992 states</a>: ‘In their zeal to enforce the law, government agents may not originate a criminal design, implant in an innocent person's mind the disposition to commit a criminal act, and then induce commission of the crime so that the government may prosecute.’In a ruling, India’s Supreme Court has also raised moral questions about sting operations with the <a href="https://indiankanoon.org/doc/120178732/" data-saferedirecturl="https://www.google.com/url?q=https://indiankanoon.org/doc/120178732/&amp;source=gmail&amp;ust=1595658441787000&amp;usg=AFQjCNFD_9ZxQf78QImt73MtvIr34R_USg">order</a>: ‘Being essentially a deceptive operation, though designed to nab a criminal, a sting operation raises certain moral and ethical questions. The victim, who is otherwise innocent, is lured into committing a crime on the assurance of absolute secrecy and confidentiality of the circumstances raising the potential question as to how such a victim can be held responsible for the crime which he would not have committed but for the enticement.’ ,” states theIn Nepal, too, a case has been filed in the Supreme Court challenging the CIAA’s use of stings. However, Pradeep Koirala at the CIAA defends the practice saying the agency provides money to victims of corruption to break the chain of bribery. “We facilitate it only when service seekers do not have the money for the bribe and approach us with an application,” he added.Even former police chief Hemanta Malla who has worked at the CIAA says the agency’s use of stings goes against the basic principle of ‘secret action’. He admits that sting operations can be used to expose serious crimes like match fixing, human trafficking and drug trafficking, but says the use of sting operations against petty crime is ‘overkill’.“The target of secret action should be to break organised crime networks, but the CIAA’s operation seems just focused on arresting junior-ranking officials. This should be stopped because the sting tool can be misused,” Malla added.Advocate Bhimarjun Acharya is clear about how to complain about corruption in Nepal: “There are so many ways citizens can lodge complaints against bribery, but entrapping someone as part of an investigation is not the way in a civilised society.”<a href="https://cijnepal.org.np/" data-saferedirecturl="https://www.google.com/url?q=https://cijnepal.org.np/&amp;source=gmail&amp;ust=1595658441787000&amp;usg=AFQjCNFNx-tiTfqcQt1OnemJShWk6Bp_yQ">Center for Investigative Journalism-Nepal</a>

CIAA traps small fish, lets big ones go

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22c09c7e80680e0417a6jpeg.jpg" alt="" width="800" height="542"/>In February 2015 The International Consortium of Investigative journalists (<a href="https://www.icij.org/">ICIJ</a>) revealed that Nepalis held Rs5 billion in secret Swiss bank accounts. Most people thought the money must have been parked there by Nepal’s corrupt politicians.But after the Centre for Investigative Journalism Nepal (<a href="http://cijnepal.org.np/category/english-posts/">CIJ Nepal</a>) went through 3,000 pages of documents from <a href="https://www.icij.org/investigations/swiss-leaks/">Swiss Leaks</a>, <a href="https://offshoreleaks.icij.org/">Offshore Leaks</a>, the <a href="https://www.icij.org/investigations/panama-papers/">Panama</a> and <a href="https://www.icij.org/investigations/paradise-papers/">Paradise Papers</a>, the names were of Nepal’s top business people. Even foreigners had deposited money in the banks using Nepali addresses and documents.Savings of Nepalis in the banks have now crossed Rs50 billion, email correspondence between CIJ Nepal and Swiss banks show.The records also reveal that Nepalis started to deposit money in Swiss banks the year after the Maoist insurgency began in Nepal in 1996.Nepalis had Rs1.25 billion in the Swiss National Bank in 1996, but that figure doubled to Rs4.1 billion by 2006, when the war ended. Nepalis deposits in the two years after the conflict declined to Rs3.9 billion. Records show that Nepali have withdrawn Rs 15.6 billion from Swiss banks so far.The biggest Nepali depositers in a Swiss bank are Minu Shah Chhibber, and her two sons who live in the UK. They had Rs2.6 billion in Swiss banks in 2006-7. Even some foreigners are found to have used Nepali documents to deposit their money in Swiss banks, including an Israeli national using a Nepali passport to open an account with ‘Kathmandu’ as his address. Other account holders who have Nepal connections are Indians.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22c39c7e80680e0417a7jpeg.jpg" alt="" width="1250" height="813">Despite it banking secrecy laws, an agreement between the Swiss government and the European Union in 2015 after the Swiss Leaks ends the exclusive confidentiality, and the Swiss agree to provide account details if demanded. The ICIJ says Swiss banks have profited from dictators, corrupt politicians, business persons who evade taxes and organisations that make money through the illegal transaction of weapons and drugs by allowing them to deposit their earnings.The country with the biggest Foreign Direct Investment (FDI) in Nepal is not China, India or the United States as one may presume, but the tax haven state of the British Virgin Islands. Of the total Rs137.67 billion received as FDI in the last two decades, the share of the British Virgin Islands (BVI) accounts for 45%. They obtained approval from the Nepal government to invest in and establish industries worth Rs8 billion.In 2017, the Panama Papers revealed that seven Nepalis including Upendra Mahato, the founder of Non-resident Nepalis Association, had invested in tax haven states. The ICIJ and CIJ Nepal collaborated in digging more into these investments, and found that Nepali businesses have used tax havens to evade taxes in Nepal or to transfer the illegally earned money to launder it. The money was then repatriated to Nepal under foreign direct investment (FDI).Investigations show that Birendra Mahato, a former lawmaker and central committee member of Federal Socialist Forum party, his elder brother Upendra Mahato, Niraj Govinda Shrestha, a non-resident Nepali and Ajeya Raj Sumargi, a businessman, are involved in this elaborate money laundering scheme. They used the sale of the telecom company Ncell to avoid paying capital gains tax in Nepal.After a G-7 Summit established the Financial Action Task Force on Money Laundering (FATF) to combat money laundering and terrorist financing the Paris-based organisation has been blacklisting countries. The FATF blacklists countries not cooperating in anti-money laundering financing. Nepal committed to abide by the criteria drawn up by the FATF and its Asia-Pacific Group in 2012 and passed the Money Laundering-related Act.  However, given these revelations, there is still a possibility that Nepal could be blacklisted in future.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22c69c7e80680e0417a8jpeg.jpg" alt="" width="1250" height="797">“While Nepal avoided the scrutiny and monitoring criteria of the global community in 2014 due to legislation and institutional reforms, there has not been effective implementation of the laws,” states Finance Minister Yuba Raj Khatiwada’s white paper on the economy last March.Nepali companies have also dealt with Mossack Fonseca, the intermediary law firm in BVI that helps businesses to want to launder their money by finding them legal loopholes in tax haven countries. In 2015, the ICIJ published details of the firm in the Panama Papers, after which it closed down.Panama Papers emails show that in 2008 Nepal’s Milap Group approached Mossack Fonseca to bid for a tender from the Nepal Supreme Court calling for an international consultant for Judicial Mapping and Judicial Assessment for a project on legal and judicial reforms. Milap Group emailed to Mossack Fonseca proposing to jointly apply for the tender, which a Mossack Fonseca official declined, saying the two could collaborate in future. Milap Group has been involved with foreign companies printing excise stickers for Inland Revenue Department, bank notes for Nepal Rastra Bank and passport printing and supply of Ministry of Foreign Affairs.Another company linked to Mossack Fonseca is Nepal Ventures registered in BVI. It is not clear from the Panama Papers who was listed as the owner, but a company with a similar name is registered at the Office of Company Registrar in Nepal with Dhanusha lawmaker Juli Kumari Mahato as main investor. The company has 20 percent share capital investment in United Telecom Limited. Mahato is the wife of Raghubir Mahaseth, Minister of Physical Infrastructure and Transport and sister of Upendra Mahato and Birendra Mahato. When asked, Juli Kumari Mahato denied having investments abroad, and said “it is a mere coincidence” that a company with similar name existed in the British Virgin Islands.The ICIJ and CIJ-Nepal investigations have also shown how money is laundered from tax havens into Nepal as Foreign Direct Investment (FDI). Records show that the Saurabh Group chaired by Bishnu Prasad Neupane, brought foreign investment from the BVI to build a hotel in Bhaktapur, but construction was stopped after Madhyapur Thimi Municipality found the 17-storey building only had permission for a five-floor structure.Saurabh Group brought the investment for the hotel from the BVI-based Global Technology and Trademark Company, and the Rs1.94 billion proposal was approved by the Department of Industry in 2013.Sulav Agrawal is the director of four companies under the Saurabh Group and brought Rs300 million in FDI from a UAE-based company to manufacture soap and betel nuts in Birganj. Agrawal is also vice-chairman of Shankar Group, but the UAE company has the same name as the one based in the BVI: Global Technology and Trademark which was also found to be evading taxes in its ventures in Parsa district.Krishna Holdings Ltd of Hong Kong has a 45% stake in Sarbottam Cement Pvt Ltd of Nawalparasi, also run by the Saurabh Group. The remaining 55% shares are owned by Neupane and his relatives. Just like how Global Technology and Trademark is operating out of not just the UAE but also the BVI, the Hong Kong-based Krishna Holdings is related to the UAE-based Krishna International.Krishna International Ltd has mentioned on its website that it has invested in as many as 22 countries including Nepal, Mauritius and Cyprus. Ramesh Kumar Sawarthia has brought Rs29.5 million from Hong Kong to build a commercial complex in Gyaneswor, Kathmandu in 2005.The British Virgin Islands-based Global Technology and Trademark has also invested Rs 240 million in the printing and lamination sector. This company has no Nepali partner, but Saurabh Group’s Jagadamba Synthetic and Quality Roto Packaging is also in the printing and lamination business.Four companies in which Saurabh Group’s Neupane has invested, have benefitted from Nepal’s controversial tax settlement policy which allowed them to get away with paying just 3.45% of the total taxes due to the state after a Commission formed by Finance Minister Ram Sharan Mahat in 2015 waived payments.The CIJ Nepal Nepal investigation based on the Paradise Papers leaks obtained by the German paper Süddeutsche Zeitungin 2017 also unearthed links between Nepal’s Laxmi Cement and tax havens in the BVI, the Isle of Man, Seychelles as well as two Indian investors. Shareholders of Laxmi Cement are also involved in KEPY Cement Udyog of Dhading and Ghorahi Cement of Dang.The Act Restricting Investment Abroad, 1964 bars Nepalis from investing in a foreign country, but the ICIJ and CIJ-Nepal investigation found that 55 Nepalis have invested in foreign countries which includes well-known captains of industry in Nepal and non-resident Nepalis. Although the law does not bar NRNs from investing abroad, but there are questions about their offshore companies.Former lawmaker Birendra Mahato, who is currently a central member of the Sanghiya Samajbadi Forum-Nepal, has invested in the ‘OJSC Amkodor Holding Limited Company’ in Belarus with his brother Upendra and another overseas Nepali Niraj Govinda Shrestha, and a foreign partner Romeo Abdo, who also happens to be linked to the Ncell tax-evasion case. Abdo, who is of Lebanese origin has been doing business in Belarus, represented the TeliaSonera in Ncell in whose ownership transfer of nearly Rs61 billion (the amount has reached Rs 72 billion now) was implicated in evading Nepal’s capital gains tax. Birendra Mahato admitted having the investment seven years ago, but not anymore, and denied knowing Abdo.For full five-part investigation go to <a href="http://cijnepal.org.np/category/english-posts/">CIJ Nepal</a>

Nepalis in tax havens, Swiss banks, money laundering

Recent outrage in Sikkim over an Indian Army expedition climbing <a href="https://nepalitimes.com/here-now/saving-kangchenjunga">Kangchenjunga</a>, the world’s third-highest peak, has spiked attention to the need to balance mountaineering jobs with indigenous reverence for sacred landmarks. Kangchenjunga (8,586m) is not a peak as much as it is a mountain range with 16 peaks above 7,000m on the border between India and Nepal -- the word itself means ‘five treasures of the snows’ in Tibetan. Some of the highest prominences like Kangchenjunga West and Kangbachen are in Nepal, while the Main, Central and South Peaks are on the border. Climbing the peak from the Indian side has been banned since 2001 because the indigenous Lepcha community there regard the mountain as the abode of Dzoe-nga, the patron deity of Sikkim, which was an independent Himalayan Kingdom until it was annexed by India in 1975.&nbsp; Buddhists in Sikkim say their saint, Padmasambhava, recognised the mountain as a protective spirit. The state has declared the base of the mountain Kangchenjunga National Park, which covers an area one-third of Sikkim. ‘The act of scaling this sacred peak is not only a matter of serious concern but also a violation of both the prevailing legal provisions and the deeply held religious beliefs of the people of Sikkim,’ read a letter from Chief Minister Prem Singh Tamang (Golay) to Amit Shah, India’s Minister of Home Affairs and Cooperation.&nbsp; Tamang continued: ‘We further request Your Honour to take up the issue with the Government of Nepal to ensure that no future expeditions are permitted on the sacred mountain, in deference to the deeply held beliefs and cultural values of the people of Sikkim.’ Kangchenjunga was climbed for the first time exactly 70 years ago by a British team who told King Tashi Namgyal, the Choegyal of Sikkim, that they would not set foot on the summit. Since then, there have been about 532 successful climbs of the peaks and 52 have died while trying.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250628060616_5c268e08cf49f36b79ef9b31933fc2d9bf9a6f65414e7ca06dd028bf04e7ccc1.png" data-media-id="editor_1" data-image-id="20250628060616_5c268e08cf49f36b79ef9b31933fc2d9bf9a6f65414e7ca06dd028bf04e7ccc1" data-rendition-name="original" width="1782" height="1178" loading="lazy" alt="Kangchenjunga: too sacred to climb NT"> <figcaption>Indigenous communities in Sikkim held purification ceremonies following the Indian expedition to Kangchenjunga. Photo: THE VOICE OF SIKKIM / FACEBOOK</figcaption> </figure>  <a href="https://nepalitimes.com/here-now/peak-climbing-season-2025-s4abrxny">This spring climbing season</a> alone, there were 70 climbing permits for foreigners issued for Kangchenjunga by the Nepal government, and made it to the top while one French climber died.&nbsp; One of the expeditions this year was an Indian Army team led by Col Ranveer Jamwal, who has summited the highest peaks on all seven continents, and Mt Everest thrice. Jamwal’s team was on the final leg of a ‘<a href="https://economictimes.indiatimes.com/news/india/nimas-summits-mt-kangchenjunga-concludes-historic-har-shikhar-tiranga-mission-successfully/articleshow/121341315.cms?from=mdr">Har Shikhar Tiranga</a>’ (The Tricolour on Every Peak) mission to plant the Indian flag at the highest points of each of India’s 28 states. Kanchenjunga was the last peak they had left, and the hardest, but the expedition put five climbers on the summit. What seems to have incensed the Sikkimese is that while it has banned climbing the mountain from its side, it was an Indian military expedition that went to Nepal to climb the mountain. After news broke of the climb in May, the Sikkim Indigenous Lepcha Tribal Association asked people to observe purification ceremonies in temples across the state. Mayalmit Lepcha of the association acknowledged that the Sikkim government was also partly at fault: “I don’t think such an expedition could have gone forward without the state government being informed, so it could have done something to intervene. It shows weakness. What’s done is done, all we can do is carry out these sanctification ceremonies.”&nbsp; In 2000, one year before Sikkim’s ban, the state allowed an Austrian team to attempt Kanchenjunga’s northeast face for a fee of $20,000, on agreement that they would stop 10m before the summit. Despite this, there was outrage over the expedition on the grounds that it violated Indian laws regarding the defiling of religious sites and Sikkim’s rights to maintain its culture after merging with India. The Indian Army expedition was also seen to have circumvented Sikkim’s law and violated religious sensibilities by going through Nepal. While the team may have thought they were respecting Sikkim’s beliefs by finding a way to complete the mission, the people of Sikkim saw it as defilement.&nbsp; The somber mood of the Sikkim people at the ritual contrasts sharply with Jamwal’s sense of accomplishment. “Without a doubt, the most difficult summit of my life,” he told reporters after the climb. “It tested every ounce of our will.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250628060616_ccfe079c78dab788d19fe2080ee8a5d5dcb11de4157316f6d94e5964da097157.jpg" data-media-id="editor_4" data-image-id="20250628060616_ccfe079c78dab788d19fe2080ee8a5d5dcb11de4157316f6d94e5964da097157" data-rendition-name="original" width="787" height="377" loading="lazy" alt="Kangchenjunga: too sacred to climb NT"> <figcaption>Prayer flags along the Sikkim-Kangchenjunga trekking route. Photo: TREKKINGININDIA.COM</figcaption> </figure>  The <a href="https://nepalitimes.com/news/the-rise-and-fall-of-nims-purja">controversial Nepali-British mountaineer Nirmal Purja</a> was also on Kangchenjunga this spring the mountain, on a mission to summit all 14 8,000m peaks for a third time. He echoed Jamwal about the tough conditions: “The conditions above camp were extremely tough, with deep snow and challenging terrain—more crevasses than usual.” Nepal’s government has not said anything publicly, but it is unlikely that it will ban climbing on Kangchenjunga, since it is becoming popular with expeditions because of its technical challenges, and overcrowding on Mt Everest. Nepal does have bans in place for some of its mountains out of respect for local beliefs. <a href="https://nepalitimes.com/banner/to-open-machapuchre-for-mountaineering-or-not">Mt Machapuchre</a> (6,990m) the imposing pyramid that looms over Pokhara, for example, is seen as an icon of purity by the Gurung people and a symbol of Vishnu by the Hindu communities who live at its base. A strict climbing ban has been in place since 1957, when a British expedition led by Col Jimmy Roberts stopped 45m short of the summit – either because the last bit was too difficult or out of deference to local sentiments.&nbsp; Khumbila that stands above Namche Bazar is only 5,761m high, but like Kanchenjunga is considered the protector deity of the Sherpa people. Gauri Shankar on the Nepal-China border, called Chomo Tseringma by the local community, was off-limits between 1965 and 1979 due to its association with Lord Shiva and Gauri, his consort. Although expeditions are now allowed, there are not too many takers. In Tibet, climbing Mount Kailash is prohibited by the Chinese government because it revered by the Hindus, Buddhists and followers of the Bon faith. Even Mt Everest is regarded as sacred, and its Sherpa name is Chomolungma, Goddess Mother of the Earth.&nbsp; Economically, climbs on Kanchenjunga bring in decent revenue. This climbing season, the 41 permits, at $1,800 each, brought in $73,800. This is somewhat comparable to Makalu, Lhotse, and Annapurna I, but these numbers are dwarfed by the $4 million in <a href="https://nepalitimes.com/news/the-everest-industry">Everest permits</a>. Revenue from Kanchenjunga climbing permits is something Nepal could potentially forgo if necessary, but the expeditions also provide jobs to hundreds of high altitude guides, porters, base camp support staff and other logistical costs.&nbsp; As the third highest mountain in the world and the tallest in India, there will always be significant motivation to climb it from the Nepal side, especially as climbers are drawn by the technical climbing at high altitude.

Kangchenjunga: too sacred to climb?

The debate about who is less accountable to the public: politicians or bureaucrats is as old as Nepal’s democracy itself.
Some blame politicians for being beholden to the businessmen who finance their electoral campaigns, and are forced to return the favour with contracts and kickbacks when in power.&nbsp;
Others say it is civil servants who are neither civil nor servants, and know the inner workings of the system to exploit loopholes – they then teach ministers, MPs, mayors, or ward chairs which juicy projects can be squeezed. And everyone gets their share.
In reality, it is probably not a case of either, or. Both have their hands deep in the honey pot. Corruption is now such a given that yet another exposé in the mainstream press, like the latest visit-visa scam, does not raise eyebrows anymore.
We may have to edit Lord Acton’s famous quote to say that in Nepal we do not even need absolute power to corrupt absolutely. The ruling cartel has divvied up the spoils, so that no one ever faces charges. The three parties all know about the skeletons rattling in each other’s closets, and they cancel each other out.
Politicians and bureaucrats get all the blame for taking bribes, but what of the givers of bribes? In this crony capitalism, businesses invariably need political patrons in an elaborate <a href="https://nepalitimes.com/here-now/nepals-only-growth-industry-private-sector-corruption" target="_blank">national network of give-and-take</a>.
<a href="https://nepalitimes.com/here-now/nepals-only-growth-industry-private-sector-corruption" target="_blank">Politicians and businesses work hand-in-glove</a> so that conflict of interest in contracts, insider trading, cartelling, and non-performing assets of banks become the norm. Our survey after the 2017 local election showed that out of the 753 newly-elected local government chairs, <a href="https://nepalitimes.com/news/elected-contractors" target="_blank">nearly 300 were contractors</a> involved in sand-mining, quarrying, or transportation syndicates.
Nepal’s tycoons have discovered that instead of donating to election war chests of politicians, it is a much surer return on investment to spend the money to <a href="https://nepalitimes.com/news/the-business-of-politics-in-nepal" target="_blank">become legislators and politicians themselves</a>.
In democracies, there are checks and balances to control corruption when it becomes endemic. The Nepal Police and Central Bureau of Investigation (CBI) are supposed to do the detective work without political interference. The courts are required to be independent in dispensing justice and punishing crooks.
But the less said about the judiciary the better. A writ petition in the Supreme Court last week accused our sister magazine <a href="https://www.himalkhabar.com/" target="_blank">HimalKhabar</a> of contempt of court for two stories: one about how high courts have been overturning a majority of verdicts of district courts in cases of rape, and another about the Biratnagar High Court clearing a self-proclaimed holy man, Krishna Bahadur Giri, of rape despite police presenting physical evidence.
The doctrine of the separation of powers stipulates that it is when the other three pillars in a democracy are compromised that the role of the free press becomes even more vital. The world over, as soon as populist autocrats are elected to the executive, their first order of business is to co-opt the legislature and the judiciary. Then they buy off, intimidate, or neutralise the media with Strategic Lawsuits Against Public Participation (SLAPP).
Nepal’s officialdom seems to be taking midnight Zoom lessons from other despots on how to gag the media. Last month, popular talk show host Dil Bhushan Pathak was served an arrest warrant by the Kathmandu District Court for <a href="https://www.youtube.com/watch?v=-CntsnTrtG8" target="_blank">a YouTube explainer</a> about the alleged involvement of the son of Foreign Minister Arzu Deuba Rana in a reported purchase of Kathmandu’s Hilton Hotel.
The Lalitpur District Court ruled that Pathak could not be arrested without fair trial, but this week the Kathmandu District Court filed another case against the journalist based on a complaint by the Cyber Bureau, and put him on a fugitive list.&nbsp;
Without going into the veracity of Pathak’s explainer, it is deeply problematic that the Electronic Transaction Act has been invoked – proof that politicians are getting the courts and investigating agencies to make an example of a high profile journalist.&nbsp;
The intention is to silence media investigations into the fake refugee scandal in which the main partner in the ruling coalition is implicated, and in which one of its former home ministers was jailed last year.
The Kathmandu High Court has been mysteriously active in targeting journalists these days. <a href="https://bizmandu.com/" target="_blank">Bizmandu</a> and <a href="https://nepalkhabar.com/" target="_blank">Nepalkhabar</a> were served a notice last month <a href="https://nepalitimes.com/news/no-freedom-after-expression-y4inku06" target="_blank">to withdraw a story they did</a> on the Chair of the <a href="https://www.sebon.gov.np/" target="_blank">Security and Exchange Board of Nepal (SEBON</a>) Santosh Narayan Shrestha allegedly demanding kickbacks from hydropower investors.&nbsp;
Incredibly, the court even asked the two portals not to report on the subject anymore – a ruling so absurd that the Patan High Court overturned it a week later.&nbsp;
The allegations against Shrestha were made in a public meeting of the <a href="https://www.ippan.org.np/members/3060/bungal-hydro-ltd" target="_blank">Independent Power Producers Association of Nepal (IPPAN)</a>, and MPs demanded a <a href="https://myrepublica.nagariknetwork.com/news/parliament-demands-probe-into-sebon-chairman-over-alleged-commission-demand-40-32.html" target="_blank">Parliament inquiry</a> into the regulator. <a href="https://www.himalkhabar.com/144523/santosh-narayan-shrestha" target="_blank">HimalKhabar</a> reported this week that while Shrestha was reportedly demanding commissions from private investors for IPOs, he cleared primary share sales in Bajhang’s 10.75MW <a href="https://www.ippan.org.np/members/3060/bungal-hydro-ltd" target="_blank">Bungal Hydro</a> in which his family members have investments, company records show.
And then just on Monday, bureaucrats hoodwinked MPs by deleting references in a bill requiring a two-year ‘cooling off’ period under which retiring civil servants could be barred from holding constitutional positions for two years.
The contest for who is more corrupt: bureauacrats, politicians, or the private sector is on.
Kunda Dixit

SLAPPing Democracy

The monsoon this year arrived on time, and brought life-giving rain — irrigating paddy terraces, recharging groundwater, reviving springs, and increasing electricity generation.
But Nepal has to deal with either too much water or too little. On a clear April day before the monsoon, the hills of Sindhuli district were parched, and there were wildfires burning out of control. There had been no rain for the past six months.
And that has been the perennial crisis for Nepal’s farmers: that 85% of the rainfall occurs during just four months of the monsoon with little rain for the other eight months.&nbsp;
The water crisis is related to the powerful changes sweeping the mid-hill region of Nepal. With better roads, higher incomes and more exposure, many residents now aspire to have the kind of water supply seen in urban homes. They want hot or cold water at the turn of a tap, showers and flush tank toilets.&nbsp;
To meet this rising demand, many local and provincial governments are investing in large water supply projects often by lifting water from rivers hundreds of metres down the mountain. But these new systems may not be sustainable in the long run.
Many villages in Sindhuli are switching from local springs to piped systems, and even in rural homes, overhead tanks are becoming common.
But this new convenience comes with big challenges. Lifting water from rivers far below requires long pipes, electric pumps, and constant maintenance. These systems are costly, and the streams themselves often shrink to a trickle in the dry months. Big water-lifting schemes look impressive, but there is doubt if they can meet growing water demand.
A much more sustainable solution would be what some communities are doing: restoring old ponds or build new recharge systems. But those villages are exceptions, in most places traditional ponds and wallows are being filled up to be turned into sports fields, or make way for buildings.
Where there are new ponds, they are sometimes in the wrong places or without proper design. Roads and drains are not engineered properly and have increased landslides and erosion. Water management in hilly areas is not just about building things, it is about building in the right way, in the right place.
Traditional water systems were based on nature. They were not perfect, but they used the land wisely. Ponds used to hold rainwater and slowly refill springs which supported families, farms, and forests.&nbsp;
Not everything worked well in the past, but we can learn from traditional water management practices. Across Nepal, some rural municipalities have launched campaigns to store monsoon runoff — either in tanks, ponds or by recharging the aquifers.
But not all efforts have been successful. Some ponds are built without any hydrological study. Some are rushed to meet deadlines rather than real needs.&nbsp;
Now, the Muhan initiative hopes to revive springs to make households more resilient and help farmings. With the financial support of the Australian Centre for International Agricultural Research, research is being done to understand how springs work and how they are affected by changes in rainfall, land use, and development.&nbsp;
Instead of just building pipes and tanks, the project maps the entire springshed so we can understand the root cause of water shortage. In Sindhuli, the problem is not the amount of rain, but the loss of natural systems that store it and the social systems that manage water.&nbsp;
Nepal’s towns and villages now face a major challenge: how to manage water all year round as demand rises with people’s living standards. Depending only on river-lift systems is not a sustainable solution.&nbsp;
We need a mix of approaches that help store water from the rainy season to make it available for the rest of the year, whether by directly harvesting rainwater, restoring ponds, managing springsheds, or smart management of demand.
Rural Nepal is also seeing dramatic depopulation. Much of the outmigration can be stemmed if there is easier water supply for agriculture and household use. Across the mid hills, villages are emptying because springs are going dry. Government policy needs to catch up with the reality on the ground, and support solutions that work for people and nature. Every water supply plan should include recharge structures. Every road or building project should consider water flow and erosion. Local governments need more than budgets: they need training, tools, and data.
Ngamindra Dahal is with the Nepal Water Conservation Foundation, Kathmandu. Hemant Ojha collaborated in this piece and is associated with the Australian National University.

Water for Life

<a href="https://nepalitimes.com/multimedia/the-last-of-the-kusunda">The Kusunda</a> are among the last remaining hunter-gatherer communities left in Nepal, and it has only one fluent speaker left of a language that is not related to any other language group in South Asia.&nbsp; The Kusunda call themselves the King of the Forests ((गेम्येहाक़ in Kusunda,वन राजा in Nepali) and used to have a nomadic lifestyle till recently. But decades of exclusion from mainstream society and modernity have forced the Kusunda to assimilate. &nbsp; Today, most Kusunda live across Nepal’s mid-hills and western plains, choosing to identify themselves as Thakuri and adopting names like Sen, Shahi, and Khan to avoid ostracisation. Over time, inter-ethnic marriages between the Kusunda and other communities became increasingly common.&nbsp; However, the assimilation with other communities also meant that almost no one from the Kusunda community can speak their mother tongue – considered by linguists to be a ‘language isolate’ not related to any other language group in the world, and lacking set rules of grammar that are foundational to other languages. There are no words for ‘Yes’ or ‘No’ in Kusunda, nor are there words to signify direction. There are 23 languages with less than 1,000 speakers listed in Nepal's 2021 census, with Kusunda being the language with the least number of speakers. The number of people who identified as Kusunda has decreased with each subsequent census. Only 253 individuals identified themselves as Kusunda in the last National Census of 2021, down from 273 in 2011.&nbsp; <div class="embed-block"><iframe src="https://creators.spotify.com/pod/show/raithane-bhakha/embed/episodes/Kusundas---the-last-of-the-forest-kings-e23ge6p/a-a9peei1" height="102px" width="400px" frameborder="0" scrolling="no"></iframe></div> The government’s decision to provide a social security stipend to the community for the past few years has prompted many from the Kusunda community to reclaim their identity and in the process, explore their culture and language. Kamala Sen Kusunda, who lives in Dang, is the only fluent native Kusunda speaker alive, although there are now other Kusunda and non-Kusunda people learning how to speak the language. By the time Kamala Sen Kusunda was born in 1975, her family had settled in a village in Rolpa. Although she did not experience the nomadic life of her forebears, she still roamed the forests freely as a child and many of the values and socio-cultural practices of her community were instilled in her and her siblings.&nbsp; This meant that Kamala grew up speaking Kusunda with her family. But by then, the Kusunda had increasingly begun to interact with people beyond their community, and inter-ethnic marriages had become a norm.&nbsp; Kamala herself married at 18 to a 52-year-old man from the Chhetri community. She would go on to have four children, but they were brought up with her husband’s culture and community rather than her own, and teaching them her mother tongue seemed impractical.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250628030648_afaa298bf8ea3b7086e2ed086b11eab463ef2b20a82a4aad74df3dd2e922a4c3.jpg" data-media-id="editor_2" data-image-id="20250628030648_afaa298bf8ea3b7086e2ed086b11eab463ef2b20a82a4aad74df3dd2e922a4c3" data-rendition-name="original" width="855" height="641" loading="lazy" alt="Kusunda NT"> <figcaption>Gyani Maiya Kusunda with Kusunda youth in 2015.</figcaption> </figure>  “If I had spoken my language to them when they were children, they would have learned,” she tells us ruefully. “But they were growing up in a different community, so I never pushed, and they never expressed interest.” At the time, she had other things to worry about, such as earning a livelihood and sustaining her family. To find work, Kamala and her family moved to Shimla in India, where she worked at an apple orchard for six years.&nbsp; Over the next years, Kamala and her family moved back and forth between India and Nepal for work, and Kamala was not actively conversing in the language of her people or being able to connect with members of her community now scattered across Nepal.&nbsp; Had she not forgotten her language after all those years? “How could I forget the language of my ancestors?” she replies. “Not speaking it did not mean that it ceased to be a part of me.”&nbsp; Kamala had been working at a brick kiln in Thimi seven years ago when the National Language Commission tracked her down, offered her a paid position as a Kusunda language consultant and source person for basic language training in Dang.&nbsp; It was there that Kamala met her cousin Gyani Maiya Sen Kusunda, the only other person able to speak Kusunda fluently, who had been working with the Commission to conserve Kusunda language and culture. It was also where Kamala met language researcher and lexicographer Uday Raj Ale. Ale had been in the middle of his research into the Tharu language and community 15 years ago when he met Gyani Maiya Kusunda’s son, who told him that his mother was one of the few people who spoke Kusunda, but that no one had shown an interest in studying and preserving the language and culture. Ale met Gyani Maiya, spending time with her learning and researching Kusunda. By 2017, Ale had collected enough words to put together a Kusunda dictionary. The Kusunda vocabulary currently comprises 2,000 words. His research into the Kusunda language and culture has taken him to every known Kusunda household in Nepal. Although the census puts the number of Kusunda at 253, Ale reckons there are only 158.&nbsp; “Kusunda language is endangered due to its lack of use in everyday life, literature, and religious and socio-cultural practices, as well as the prevalence of inter-ethnic marriages,” explains Ale. In 2019 the Language Commission began its language transfer programs for youth from indigenous communities. Since then, the Commission has completed multiple phases of Kusunda language classes in Dang facilitated by Uday Raj Ale. The classes have 20 students, not just from the Kusunda community, but also interested non-native students.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250626120632_c6c378bc00af450f2b7f0cf17af1c3b2b6f7b7226927c458c3e01ec389869d33.jpg" data-media-id="editor_3" data-image-id="20250626120632_c6c378bc00af450f2b7f0cf17af1c3b2b6f7b7226927c458c3e01ec389869d33" data-rendition-name="original" width="1485" height="1535" loading="lazy" alt="Kusunda NT"> <figcaption>Students learning Kusunda with instructor Uday Raj Ale (second row, left)</figcaption> </figure>  Khamba Rokaya, who worked as a caretaker for young Kusunda children in Dang, became interested in learning the language as she sat in with the children during their lessons, and for the last few years has been among the few non-native Kusunda language learners in Dang. “I am not from the Kusunda community, but now that I have learned the language, I hope to do my part to carry on the work and share my knowledge with as many people as possible,” she says. “One way to ensure that we preserve this language is to extend its speaker base, both within the Kusunda and non-native communities.” Ale and Kamala have continued to work together since Gyani Maya’s passing in 2020, expanding the Kusunda vocabulary and creating appropriate curricula to fit the needs of the students as their knowledge of Kusunda expands.&nbsp; But without any documentation of Kusunda history, the community’s traditions, stories, values and language were at risk of being lost to time. “The loss of an ethnicity, language or culture in a country is akin to losing a vital organ, and a unique perspective of looking at the world,” says Ale. Which is why Archive Nepal in collaboration with the British Council’s Cultural Protection Fund and the UK’s Department of Culture, Media, and Sport in February launched a book of creative writings in the Kusunda language titled पिन्डा (meaning ‘The First’ in Kusunda): A Compilation of Kusunda Literature. The book is a collection of informative essays about the Kusunda language and culture, short stories that explore themes from nomadic life to universal Nepali experiences of poverty and migration, letters to loved ones, as well as conversational pieces by five Kusunda students ranging from ages 16 to 30. The works in the Kusunda language are also translated into Nepali and English.&nbsp; “Language is an important part of ethnic identity, and our indigenous languages cannot evolve or be conserved unless they are spoken or taught,” said Ale during the launch of the book earlier this year. “But most importantly, language exists as long as there exists literature in that language.” Kamala was in Kathmandu for the launch of the book, and smiled proudly as she looked at the young writers who had contributed to the collection. She said: “I’m glad the young people have chosen to learn and preserve Kusunda. Otherwise, our language would have died with me.” &nbsp;

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