The so-called experts referred to in the article <a href="https://nepalitimes.com/news/business-as-unusual">Business As Unusual</a> in the 22 September issue of Nepali Times by Ramesh Kumar, do not seem to have used their ‘expertise’ in making their observations. Their comments are thus simplistic and mutually contradictory.&nbsp;
If they were using a set of commonly accepted indicators and related verifiable data, their opinion could not be mutually so disparate. I know of no economist in Nepal worth the name who have defined the characteristics specific to Nepal economy and have come up with a theoretically defensible set of prescriptions for investment and economic development in the country.&nbsp;
Many of them masquerade as economists based on having acquired a degree, maybe, a PhD sometime in the past. Others after spending some time in the finance ministry as part of the musical chair of inter-ministry transfers in the bureaucracy.
Like most ‘observers’ in Nepal, these economists too dare to make profound-sounding observations based on what immediately meets their eyes.&nbsp;
For instance, this year they seem to be impressed by the size of the crowd visiting the NADA auto show in Kathmandu to claim that despite the nationwide clamour to the contrary, the economy is not really in a slump.&nbsp;
They are the mob economists who gauge the state of the economy by the size of the shoppers at New Road or Asan Tole.
Nepal's tragedy is that all governments headed by corrupt politicians have spent all their time and energy in defrauding the state and gullible citizens. Examples: massive scams like the <a href="https://nepalitimes.com/editorial/losing-our-moral-compass">Fake Bhutanese Refugee</a> (KPO and SBD governments), <a href="https://nepalitimes.com/here-now/crime-and-or-punishment-in-nepal">Lalita Niwas</a> (MKN and BRB governments) and recent <a href="https://nepalitimes.com/editorial/nepal-gets-gold-medal-for-corruption">gold smuggling</a> (PKD government).
Meanwhile the so-called ‘Planning Commission’ and other think tanks recycle what is already in writing. There is no accountability for their total lack of delivery from their writings.&nbsp;
Even at the cost of modesty, I must state that during my tenure in the government as a karmachari, I have had the distinction of innovating three major policy reforms: the institution of user groups, the <a href="https://nepalitimes.com/from-the-nepali-press/taking-away-forests-from-communities">forest user groups</a> and the mothers' groups and their Female Community Health Volunteers.
Together, these policies changed the face of our nation. &nbsp;As the saying goes, if you don't know where you are going, any road will take you there. That seems to be the fate of our planners, policy makers, self-styled economists and of course, corrupt politicians.
As things stand, as per recent agricultural survey, 62% of households remain in agriculture. A decade earlier in 2011, it was 71% whereas the sector's contribution to national GDP was only 34.3%.&nbsp;
The fact that only 12% farm households have had access to agriculture credit, &nbsp;a prime mover for development, and only 7% to agricultural grants, remains the most lethal of neglect to a sector on which so many people still depend.&nbsp;
This clearly suggests massive deprivation of a vast majority of the country's population through unemployment and underemployment, lack of sufficient land and their vastly unequal distribution.&nbsp;
While 4 million Nepalis plus a vast but unknown number <a href="https://nepalitimes.com/here-now/love-thy-neighbours">working in India</a> have migrated for income and employment, a 2018 survey showed that 900,000 people were actively looking for employment, and nearly 70% of them were in the age bracket between 15-34 years.&nbsp;
While Nepal's industrial sector remains miniscule, the irony is that sunflower, palm and soyabean oils remain the major export items. <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Since none of those oilseeds are produced in Nepal</a>, it only shows that our investment regime remains totally divorced from even the rudimentary rule of economic development — the principle of comparative advantage. &nbsp;
The size of the crowd visiting the NADA auto show, is more the manifestation of the artificial nature of our industrial sector and remains the handiwork of <a href="https://nepalitimes.com/editorial/inconvenient-truths">corrupt and incompetent politicians, bureaucrats and an unscrupulous business community</a> working in cahoots to profit from loopholes.&nbsp;
Indian economist Jayati Ghosh who teaches at MIT, wrote about the impact of inequality in her own country in 2022, ‘The pandemic brought home to us a hard truth. Unequal access to incomes and opportunities does more than create unjust, unhealthy and unhappy societies—it kills people.’&nbsp;
Then, Nobel laureate economists, Abhijit Banerjee and Esthe Duflo wrote in 2020: ‘Although no one knows when the growth locomotive will start in a given country, if and when it does, the poor will be more likely to hop on the train if they are in decent health, can read and write, and can think beyond their immediate circumstances.’
Which kleptocrat politician, bureaucrat, unprincipled economist, or hardcore politician disguised as civil society leader has thought of our problems in these terms?
Bihari Krishna Shrestha is an anthropologist and a former government secretary.
<a href="mailto:biharishrestha@gmail.com" target="_blank">biharishrestha@gmail.com</a>

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If you don’t know where you are going, any road will take you there

On 18 July, the Department of Revenue raided the cargo terminal at Kathmandu airport and seized 61kg of gold being smuggled in from Hong Kong hidden inside brake shoes of two-wheelers. Although this was the biggest haul of contraband gold in the country’s sordid history, it emerged that the smugglers had already carried out similar jobs dozens of times before.
In the days following the raid, Nepal Police arrested 21 individuals involved, including customs officials, Chinese and Indian nationals, and middlemen. Top politicians and their cronies who were the alleged masterminds were not touched.
The names included former Maoist minister Barshaman Pun, former speaker Onsari Gharti Magar, the family of former vice-president Nanda Kishor Pun, and Maoist Centre vice-chair Krishna Bahadur Mahara and his son.
Mahara was also said to be involved in another gold smuggling operation in December 2022 in which a Chinese national was found to have brought in gold concealed inside e-cigarettes at the airport
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
Investigative journalists then uncovered Mahara &amp; Son trying to pressure officials to release the gold for auction. The Maoist leader has denied being involved, but police have phone records to prove otherwise. Meantime, the gold itself has vanished from storage.&nbsp;
The stench from scam after scam this year has become unbearable. If this was an international tournament, Nepal should get the Gold Medal for corruption. And these are just the scandals that we know about, away from the spotlight there is rampant extortion by politicians and bureaucrats of businesses throughout the land.
Interestingly, not a single politician from the Maoist party of Prime Minister Pushpa Kamal Dahal and Home Minister Narayan Kaji Shrestha is behind bars. Nepali Congress (NC), opposition UML and Maoist defectors are in jail for the fake Bhutanese refugee scandal. The Lalita Niwas real estate scam has implicated just about everyone, even those who bought the property. But no Maoists.&nbsp;
Since senior figures from all three main parties are now entangled in one scandal or the other, a devious effort is afoot to protect each other from prosecution. It seems Nepal’s feuding politicians can only agree to scratching each other’s backs during their three-party meetings to discuss the UML obstruction of the house over the gold smuggling case.
Read also: <a href="https://www.nepalitimes.com/news/in-a-federal-kleptocratic-republic-of-nepal">In a Federal Kleptocratic Republic of Nepal</a>, Shristi Karki
NC president Sher Bahadur Deuba has continuously and blatantly blocked attempts to investigate his wife Arzoo Rana in the refugee scam, and pressured Prime Minister Dahal this week to transfer Kathmandu Valley police chief AIG Shyam Gyawali, SSP Manoj KC of the Kathmandu Valley Crime Investigation Office, and Chief of Kathmandu Police SSP Dan Bahadur Karki. Dahal was only too happy to oblige since his comrades were also knee-deep in scandals.
The move has blindsided Home Minister Shrestha and brought into question his public commitment to rid the country of corruption.&nbsp;
As it stands, Nepal’s jumbo coalition government is held together only by mutual distrust. Deuba and other parties of the coalition are keeping close watch so Dahal does not direct ongoing investigations towards their own leadership in retaliation. And Dahal needs Deuba so he can remain in power to continue to loot in cahoots with cronies.
Nepal’s Supreme Court also ordered investigations into CPN (Unified Socialist) chair Madhav Kumar Nepal and Nepal Socialist Party head Baburam Bhattarai in the Lalita Niwas scam, but that has not gone anywhere. Both parties are in the coalition.
Read also: <a href="https://www.nepalitimes.com/editorial/losing-our-moral-compass">Losing our moral compass</a>, Editorial
Meanwhile, the government has concluded that the Gaur Massacre does not need an investigation. Dozens of Maoist cadres were brutally massacred in a 2007 confrontation. But since Upendra Yadav who was said to have masterminded it is now a key member of the ruling coalition, Dahal is willing to let bygones be bygones.
While scandals are erupting thick and fast, the Maoists are mum about their own embezzlement 15 years ago of billions meant for their former guerrillas in UN-supervised demobilisation camps whose numbers they have admitted to inflating.
Even as the Prime Minister and the Home Minister keep giving speeches saying the rule of law applies to all equally, it looks like some are more equal than others. With a few exceptions, none of the big fish have been netted, and even those who have could now be let go because investigating officers have been removed and replaced with yes men.&nbsp;
Early on, it really did look like Home Minister Shrestha, the CIB and the Police were going after the big crooks, and that this would deter thievery. Alas, that was wishful thinking. The politicisation of crime and criminalisation of politics is now complete.
Read also: <a href="https://www.nepalitimes.com/news/political-trash">Political trash</a>, Shristi Karki

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Nepal gets Gold Medal for corruption

A former deputy prime minister, an ex-home minister, an erstwhile election commissioner, a senior government secretary and dozens of others are behind bars in a sweeping government crackdown on corruption.&nbsp; <a href="https://www.nepalitimes.com/news/in-a-federal-kleptocratic-republic-of-nepal">Big heads have rolled</a>, but are bigger heads being deliberately spared? The<a href="https://www.nepalitimes.com/news/rot-at-the-top"> fake Bhutan refugee scandal</a> and the organised crime behind the Lalita Niwas real estate scam have shown that Nepal’s media, investigation agencies, law enforcement and court system are all playing their check and balance roles. However, there is a whiff of <a href="https://www.nepalitimes.com/editorial/rule-of-the-lawless">political vendetta</a> in some of the arrests, and concerns that even bigger fish are being let off the hook. There is also apprehension that loopholes in existing laws will be used for the guilty to get away, and some of the innocent who were duped by middlemen will be made scapegoats.&nbsp; “Politicians have made a mess of our legal and judicial system, they are strategically introducing and amending laws to suit their purpose,” says Padmini Pradhananga of the Nepal chapter of Transparency International.&nbsp; “The government has proposed a five-year time limit for prosecuting corruption,” she adds. “There can never be a statute of limitation in corruption cases, this is just unacceptable” Eyebrows are also being raised about why a coalition government in which both the prime minister and home minister are from the Maoist party has chosen to <a href="https://www.nepalitimes.com/opinion/i-speak-nothing-but-the-truth-your-honour">prosecute</a> these two high profile corruption cases so doggedly. Not a single senior Maoist figure has been implicated in either scandal, and the first senior politicians to be named were Top Bahadur Raymajhi and Ram Bahadur Thapa, both former Maoists who defected to the UML in 2021. Independent observers say that although there is evidence against most of the accused so far in both cases of corruption in high places, there does not seem to be the same eagerness to probe <a href="https://archive.nepalitimes.com/article/from-nepali-press/CIAA-under-threat,124">alleged embezzlement</a> by Maoist leaders of government allowances to the nearly 20,000 former guerrillas being demobilised in UN-supervised camps after the ceasefire.&nbsp; Hari Bahadur Thapa, author of the 2017 book Rajagj which examines <a href="https://www.nepalitimes.com/news/nepal-s-shortsighted-view-tower-craze">corruption</a> cases in Nepal’s recent history, says both the fake refugee scandal and the Lalita Niwas scam are manifestations of a corrupt bureaucracy that is rotten to the core and has contaminated the polity. The twin scandals rocking the highest levels of the Nepal government come at a time when the nine-party <a href="https://www.nepalitimes.com/news/the-reign-god">coalition of Prime Minister Pushpa Kamal Dahal </a>is looking increasingly fragile. Part of the reason is Parliamentary arithmetics, but it is also because of the prime minister’s proclivity to ad lib. Read also: <a href="https://www.nepalitimes.com/news/political-trash">Political trash</a>, Shristi Karki Coalition members themselves have been critical of the<a href="https://www.nepalitimes.com/here-now/nepal-s-tax-system-widens-rich-poor-gap"> new budget</a>, but Dahal managed to pacify them by offering pork-barrel funds. And when news leaked of the opposition UML making overtures to dissidents within the Nepali Congress, the prime minister responded by bringing together five leftist parties (except the UML) to form a loose Socialist Front.&nbsp; Prime Minister Dahal is facing flak for an unscripted remark at a book launch this week in which he said a Sikh transport tycoon had gone to <a href="https://www.nepalitimes.com/news/super-hit-or-super-flop">New Delhi </a>to try to make him prime minister. A video clip of the remark lit fireworks on social media that led to opposition parties disrupting Parliament and demanding Dahal’s resignation. &nbsp;&nbsp; All this brouhaha is distracting attention from the ongoing investigations into the two scandals. Most of those charged appear to have been involved in varying degrees of wrongdoing. After last year’s elections in which i<a href="https://www.nepalitimes.com/editorial/rise-of-the-independents">ndependent and alternative candidates made a strong showing</a>, the Maoists may have read the writing on the wall and want to clean up their image to distinguish themselves from other established parties in the coalition and the opposition. It was the media that first exposed the fake refugee scam and has been uncovering some of the sordid details in the <a href="https://www.nepalitimes.com/editorial/the-oligarchy">Baluwatar land scam</a>. The Nepal Police and the Central Investigation Bureau (CIB) also appear to have been given a free hand in pursuing the cases. &nbsp;&nbsp; “Home Minister Narayan Kaji Shrestha has repeatedly reassured people that no one involved in the scam will be spared. Let’s give him the benefit of doubt, at least he is cracking down on the culprits,” says former government secretary Khem Raj Regmi. He adds: “This gives the public a real hope that other corruption cases like the wide body scandal will also be investigated. But we have to keep prosecuting corruption cases right till the end, we can’t be complacent.” However, this has not absolved Home Minister Shrestha from allegations that his party is pursuing political vendetta, and at the same time trying to limit the investigation to mid-level political figures. &nbsp; Read also: <a href="https://www.nepalitimes.com/editorial/nepal-populist-party-balenist">Nepal Populist Party (Balenist)</a>, Editorial  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230706090748_c439bb466484b25194143c12022cc974a1eb1b5435dc0254c8f7f1548efd1389.jpg" data-media-id="editor_13" data-image-id="20230706090748_c439bb466484b25194143c12022cc974a1eb1b5435dc0254c8f7f1548efd1389" data-rendition-name="original" width="3600" height="2288" loading="lazy" alt="Page 4 RSS"> <figcaption>ALL SMILES: Prime Minister Dahal and Madhav Kumar Nepal of the CPN (US) at a function this week in Bhaktapur. Nepal has been implicated in the Baluwatar land grab scam. Photo: PRADEEP RAJ ONTA/RSS</figcaption> </figure>  When the police dragnet started to widen in May, the three top leaders of the Maoist Centre, Nepali Congress and the UML circled their wagons and held lengthy meetings in Baluwatar in what was seen as a damage control exercise to ensure that <a href="https://www.nepalitimes.com/editorial/losing-our-moral-compass">the investigation </a>did not reach the highest echelons.&nbsp; For example, Arzoo Deuba, the wife of NC president Sher Bahadur Deuba, has not been investigated despite being implicated, as others who were arrested were, in testimonies on the fake Bhutanese refugee scandal. Likewise, former prime ministers Babauram Bhattarai and Madhav Kumar Nepal have also been spared so far in the <a href="https://www.nepalitimes.com/here-now/kathmandu-s-unreal-real-estate-prices">Lalita Niwas scam</a> even though their Cabinets allowed ownership of government land to be transferred to private entities.&nbsp; ‘If they do not go after people like Arzoo Deuba, Baburam Bhattarai and Madhav Kumar Nepal, they cannot accuse those lower down who were just following orders,’ argued &nbsp;senior advocate Balkrishna Neupane in an interview with Everest News. ‘All this boils down to the involvement of politicians post multi-party democracy in organised crime.’ The two scandals have also bolstered the argument of monarchists who have been engaged in a <a href="https://www.nepalitimes.com/here-now/now-and-then">heated debate in the public sphere</a> about whether Nepal was better governed during the Panchayat days. They say the fake refugee scandal is high treason, and the real estate scam is indication that the rot goes right to the top.&nbsp; However, it could also be argued that the scandals have been exposed and investigated precisely because Nepal has a <a href="https://www.nepalitimes.com/editorial/monopoly-on-information">free media</a>, functioning rule of law and independent investigations.&nbsp; The concern now is the politicisation of the judiciary and the CIAA (Commission on the Investigation of the Abuse of Authority) and whether they are being restricted to <a href="https://www.nepalitimes.com/news/ciaa-traps-small-fish-lets-big-ones-go">investigating only mid-level bureaucrats and selected politicians</a>. Indeed, the CIAA in 2020 had under political pressure quashed the investigation into the forgery of land titles of Lalita Niwas, and the CIB revived the case only after Shrestha became home minister.&nbsp; “In Nepal, we have national unity only in high level corruption cases where the top leadership are hand in glove with each other,” says Khem Raj Regmi former secretary who also served as president of Transparency International Nepal. “For example, in the Sudan APC scam, there was no paper trail to implicate politicians, and the police took the fall.” In 2017, three former police chiefs were jailed for misappropriating Rs288 million while purchasing armoured personnel carriers and other logistics for the Nepal Police peacekeeping mission in Sudan’s Darfur. The kickbacks would not have been possible without collusion at the highest levels of government.&nbsp; Unlike in the <a href="https://archive.nepalitimes.com/blogs/thebrief/2017/04/30/shadow-over-elections/">Sudan Scam</a>, the Lalita Niwas case has files with signed documents by ex-prime ministers Bhattarai and Nepal but the CIAA cited a legal provision that policy decisions by the Cabinet are out of bounds to shelve the probe. The anti-graft body was investigating the case after former secretary Sarada Prasad Trital led an investigation committee on the Lalita Niwas land scam at the behest of the UML government at the time. “We have now reached a point where corruption is taking a dangerous form of organised crime,” says investigative journalist and author Hari Bahadur Thapa. “There are also indications that political rivalry is driving some of the investigations.” Read also: <a href="https://www.nepalitimes.com/editorial/the-tragedy-of-tek-nath-rizal-2g4dahmr">The tragedy of Tek Nath Rizal</a>, Editorial The CIAA also spared those who returned Lalita Niwas property, including senior UML politician <a href="https://www.nepalitimes.com/news/let-them-eat-cake">Bishnu Poudel</a>. But others who also returned land they bought were not accorded the same concession and are in the CIB dragnet. Those who innocently bought property from real estate agents but were not otherwise involved are also being investigated.&nbsp; Explains Regmi: “Not all Cabinet decisions are policy decisions, the CIAA should have allowed the court to decide that. The fact that they did not means that there was political interference.”&nbsp; There have been many complaints over the years that the CIAA has been<a href="https://archive.nepalitimes.com/article/editorial/commission-for-the-abuse-of-authority-karki-impeachment,3335"> used by politicians to go after rivals and for extortion</a>. Calls for it to be headed by independent and credible individuals have never been heeded.&nbsp; “It is clear for everyone to see that major players were being protected with the excuse that they made policy decisions in Cabinet. If only the CIAA had worked more honestly, we would not be in this mess,” adds author Thapa. Pradhananga of Transparency International agrees that politicians want to call everything a ‘policy decision’ so that no one can challenge them. She says: “This is the same as saying we are not allowed to question them once they are elected. In that case, what is the use of the CIAA? Policy decisions are supposed to be for the public good, not for personal gain.” Prime Minister Dahal has been using the anti-corruption crusade launched by Home Minister Shrestha as proof that his party is committed to root out corruption. He has vowed that senior political figures will not be spared.&nbsp; Even critics give Dahal and Shrestha credit for re-opening the <a href="https://www.nepalitimes.com/here-now/nepal-has-to-curb-corruption-before-wooing-investors">corruption files</a>. The fake refugee scandal has further dented Nepal’s international standing and the Lalita Niwas land grab has shown that Nepal has been hollowed out by corruption.&nbsp; “Nepal has lost the goodwill and trust of the world,” says Pradhananga. “We have damaged our reputation for loyalty and bravery. It will have consequences for big projects in Nepal and our diaspora.”&nbsp; The investigations into the two scandals demonstrate that there is political will to set things right – but only if the probes are free from <a href="https://www.nepalitimes.com/news/chief-justice-suspension-linked-to-mcc-ratification">political interference</a>.&nbsp; Read also: <a href="https://www.nepalitimes.com/here-now/real-refugees-want-to-go-back-to-bhutan">Real refugees want to go back to Bhutan</a>, Sujata Dhungana

Sonia Awale

Crime and/or Punishment in Nepal

The fake refugee scandal that is rocking the government is only the latest outrage that Nepalis have witnessed. Indeed, they are so inured to corruption in high places that most have taken it as a given.&nbsp;
But even by the standards of <a href="https://www.nepalitimes.com/news/in-a-federal-kleptocratic-republic-of-nepal">Nepal’s kleptocracy</a>, this one is blatant in its planning and execution, implicating the very ministries entrusted with internal security, and one that has tainted Nepal’s global standing. It is proof that Nepal’s ruling class has lost its moral compass.
For the moment we can only take some comfort from the fact that Nepal’s independent media is taking its check and balance role seriously at a time when the three other pillars of our democracy are tottering. The Police has also so far been conducting their investigations diligently.
Because of the intense scrutiny by the media, civil society and individual Nepalis on social media platforms, any attempt to prevent the prosecution of the culprits will now be seen as an even bigger crime than the scam itself.
In so many ways, the <a href="https://www.nepalitimes.com/news/rot-at-the-top">fake Bhutanese refugee scam</a> is a reflection of everything that is wrong with the people who have ruled Nepal since 1991, and they tend to be the same people and parties.
Read on: <a href="https://www.nepalitimes.com/news/rot-at-the-top">Rot at the top</a>, Shristi Karki
The attempt to trick desperate Nepalis to pay up hefty sums to go to America when third country resettlement of Bhutanese was closed seven years ago itself speaks to the brazenness of the crime.
As Nepal’s newest MP, Swarmin Wagle of the RSP, put it during a discussion in Kathmandu this week: this is fraud, corruption, human trafficking, transnational organised crime, and sedition, all rolled into one.
“There has been a meticulous legalisation of corruption through amendments in Parliament. So we seem to be creating a corruption-friendly regime,” said Wagle. “Our legal system needs to be able to catch up with those who are corrupt.”
The scam was possible in the first place because Nepal’s legal system allows it. Our Parliament is a farce, the judiciary is guilty of abetting the guilty, and impunity prevails upon the land.&nbsp;
Despite widespread concern, the <a href="https://www.nepalitimes.com/opinion/comment/nepal-s-transitional-justice-and-the-west-s-recalibration">Transitional Justice Bill</a> which allows war criminals to literally get away with murder was rushed through Parliament. It gave a clean chit to Maoists and state-side perpetrators of conflict-era atrocities. The Bill even made the disingenuous distinction between ‘murder’ and ‘extreme murder’.
In 2020, then communication minister <a href="https://www.nepalitimes.com/news/alpha-males">Gokul Baskota</a> was caught on tape soliciting a Rs700 million bribe for a security printing press. Less than two years later in the 2022 November federal elections, Baskota was voted to Parliament from Kavre-2.
There are scandals involving Maoist leaders pocketing compensation money meant for their guerrillas, kickbacks on <a href="https://www.nepalitimes.com/editorial/aborted-landing-in-nijgad">international airport deals</a>, payoffs for hydropower licenses. The list is so long it will exceed the word length for this Editorial.
Despite all these elephants in the room, Nepal’s conservative male politicians are obsessed about what RSP MP Sumana Shrestha wears in Parliament. The fact that her t-shirt and Chino was even a topic for discussion exposes not just blatant misogyny, but also a collective inability to discern our priorities and address the real issues affecting Nepalis. The contrast to a male MP who dared disrobe on the floor of the House not being an issue could not have been more stark.
Read on: <a href="https://www.nepalitimes.com/news/in-a-federal-kleptocratic-republic-of-nepal">In a Federal Kleptocratic Republic of Nepal</a>, Shristi Karki
When impunity is rife and morals become elastic, we cannot fault desperate Nepalis attempting to break the law by trying to make fake refugee documents. 
 The scandals are coming thick and fast. A respected 75-year-old agriculture expert in Khotang is caught in a Setopati exposé abusing girls in a school he founded.&nbsp;
Elsewhere, rapper Balen Shah who campaigned as the voice of the impoverished has since started upsetting the apple cart of street vendors in the name of cleaning up the streets. What happened to his election promise of segregating <a href="https://www.nepalitimes.com/multimedia/nepal-still-mixing-garbage-with-politics">Kathmandu’s garbage</a> at source?
The media also <a href="https://www.nepalitimes.com/news/investigation-introspection-and-investment-in-media">needs to self-reflect</a>. Although it was the relentless pursuit of the story <a href="https://ekantipur.com/news/2023/03/27/167988439341418193.html">by Kantipur</a> and other media that the fake refugee scam is throwing up more high profile guilty, the proof of the pudding will be in the persecution of the guilty.
The media cannot be an island of integrity when society has been hollowed out by corruption and wrongdoing. Journalists need to be even more careful to be objective, and not become mouthpieces for the highest bidders. This is even more crucial at a time when populism and ultranationalist sentiments have permeated all sectors of the state.
Sonia Awale

Losing our moral compass

Former Home Minister and Deputy Prime Minister Top Bahadur Rayamajhi had been on the run ever since he was named as one of high ranking officials involved in a <a href="https://www.nepalitimes.com/news/rot-at-the-top">fake refugee scandal</a>. After being MIA for 10 days, he was finally arrested on Sunday evening. Rayamajhi is a former Maoist guerrilla commander who defected to the UML, and served in the K P Oli government after 2018. Warrants for his and his son’s arrest were issued on 3 May. His son was detained the same day, but Rayamajhi reportedly fled to India and was finally arrested in Kathmandu.&nbsp; He is the highest ranking former government official to go down in a scandal that has so far snared another former home minister from the Nepali Congress (NC), Bal Krishna Khand, government secretaries, middlemen and masterminds of a scheme to send hundreds of Nepalis pretending to be Bhutanese refugees to the United States. The story came out after <a href="https://ekantipur.com/news/2023/03/27/167988439341418193.html">an expose in Kantipur</a> in March in which Nepalis who had paid up to Rs5 million to recruiters to take them to the US as refugees from Bhutan lodged complaints against them. They had paid to have falsified documents to be on a list of Bhutanese refugees who were supposed to be resettled in the US, even though the relocation scheme had been closed since 2016. On 10 May, former Home Minister Bal Krishna Khand was arrested from Kathmandu after being implicated in the scam. Bal Krishna Khand’s wife Manju, who is also an MP, has also been incriminated, and is said to be on the run.&nbsp; MP Arzu Rana Deuba, the wife of NC leader and five-time prime minister Sher Bahadur Deuba has also been accused of accepting a kickback from the fake refugees on the basis of an audio recording made by one of the recruiters. Rana for her part strongly denied the accusations on the floor of Parliament, calling for an investigation into the audio, which she maintains is fake.&nbsp; As the police investigation continues, top leaders from the NC, UML, and Maoist Center have met to discuss developments amid growing demands from within their own parties for an unhindered inquiry into the scam, and for the perpetrators to be brought to justice. Social media is rife with accusations that the three main parties are trying to brush the dirt under the carpet.&nbsp; The leaders of the three parties have publicly called for an objective and thorough investigation, even though Deuba is said to be the most worried -- keeping tabs on the police inquiry over his concerns that his wife will be embroiled in the investigation. The snowballing scandal and its international repercusiions appears to have spooked the government, and Prime Minister Pushpa Kamal Dahal summooned Kathmandu-based diplomats to Singha Darbar on Monday to put forth his government's commitment to pursue the guilty. &nbsp; Earlier on Monday, former minister and Nepal’s ambassador to India Nilamber Acharya, former head of the CIAA (the anti-corruption watchdog) Surya Nath Upadhyay, as well as independent lawmaker Amaresh Kumar Singh and RSP MP Swarnim Wagle spoke about the scandal and its implications for Nepali politics and the country's standing on the global stage during a program organised by the Tanka Prasad Acharya Foundation in Patan (pictured, below).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023051509050_d49c69d980f713d03af4c535a32e53afc620ac54c042be101dd1a1790c4f32b0.jpg" data-media-id="editor_2" data-image-id="2023051509050_d49c69d980f713d03af4c535a32e53afc620ac54c042be101dd1a1790c4f32b0" data-rendition-name="original" width="3072" height="2048" loading="lazy" alt="Corruption panel"> <figcaption>Photos: GOPEN RAI</figcaption> </figure>  Speaking at the event, <a href="https://www.nepalitimes.com/news/india-nepal-ties-must-move-beyond-1950-treaty">Nilamber Acharya</a> said the scandal has put the spotlight on Nepal’s governance failure and a decline of its political mechanisms, adding that corruption, not ideology, unites leaders making it easier for parties with fundamentally opposing principles to come together in governments. He stressed that crime is on the rise because powerful figures commit them, and even more powerful figures shield criminals. “The world is watching Nepal,” warned Acharya. “And it is up to us which side we choose to stand on: whether we establish Nepal as a country of corruption, or emerge from this as a nation that holds the corrupt to account.” Meanwhile, <a href="https://archive.nepalitimes.com/news.php?id=10283">Surya Nath Upadhyay</a> praised Nepal Police for their independent investigation so far without giving in to pressure, adding that there have been attempts to whitewash it by people in power even as they publicly call for a thorough inquiry. Upadhyay was chief commissioner of the CIAA from 2001 to 2006, and during his tenure cracked down on many corrupt government officials. In 2002, the CIAA under his leadership busted 22 high-ranking officials of the revenue department for corruption. In 2006, the CIAA charged five former ministers as well as secretaries of the government, and police personnel for amassing illegal wealth and property. What is needed now, Upadhyay added, is for the public to be the watchdogs and see the investigation through. “If the media, civil society, and law enforcement lose steam, all of the progress we have already made will evaporate, and people will eventually forget,” said Upadhyay. “We need to make an example out of every perpetrator involved in this crime.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023051509054_3d6f09aab22c983819927a83dbd04bf3378f523eacc69215df8aa15890d1f167.jpg" data-media-id="editor_5" data-image-id="2023051509054_3d6f09aab22c983819927a83dbd04bf3378f523eacc69215df8aa15890d1f167" data-rendition-name="original" width="3072" height="2048" loading="lazy" alt="Nilamber Acharya"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023051509058_71bb5e740023e2d793be2dcad01e49769b7e5b0e21fc5464628f914cee52e7f6.jpg" data-media-id="editor_6" data-image-id="2023051509058_71bb5e740023e2d793be2dcad01e49769b7e5b0e21fc5464628f914cee52e7f6" data-rendition-name="original" width="3073" height="2048" loading="lazy" alt="Surya Nath Upadhyay"> </figure>  Swarnim Wagle, <a href="https://www.nepalitimes.com/news/in-with-the-new-out-with-the-old">the newest RSP lawmaker in Parliament</a> after he won the by-election from Tanahu in April, spoke about the size and severity of the scandal, the changing nature of corruption, and the need for institutional reform: “This has been a simultaneous overlapping of crimes: fraud, corruption, human trafficking, transnational organised crime, and sedition.”&nbsp; Wagle also noted how corruption has evolved with the sophistication of the economy, moving from cash transactions to shares, gold and jewels and to the point that even public figures known for being corrupt could openly challenge the authorities to prove their crimes in an absence of traceable corruption. Wagle added that impunity has aided and abetted many corrupt officials.&nbsp; “There has been a meticulous legalisation of corruption through amendments in Parliament. So we seem to be creating a corruption-friendly regime,” said Wagle. “Our legal system needs to be able to catch up to those who are corrupt.” The fact that officials from all major parties were involved in the refugee fraud meant that there was “all-party corruption” in Nepal, lawmaker <a href="https://archive.nepalitimes.com/news.php?id=13098">Amresh Kumar Singh </a>who was formerly with the NC and ran as an independent during federal elections last November. Most recently, Singh disrobed in Parliament last week in protest over being denied time on the floor to speak about the scandal.&nbsp; Singh warned that the police have so far only caught the “small fish” of the refugee scam, cautioning that it would be foolish to believe otherwise even as former home ministers are arrested. “This scandal is merely a mirror that has reflected how Nepal is run on patronage by political brokers, reaching the most influential of ministries,” continued Singh. “Nepal is not a democracy, it is a particracy. And corruption supersedes even political parties.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023051509058_1b3a30577fd72a2fea627df2e667593a5a0a5e324796ba3cd229afaba4515eaf.jpg" data-media-id="editor_9" data-image-id="2023051509058_1b3a30577fd72a2fea627df2e667593a5a0a5e324796ba3cd229afaba4515eaf" data-rendition-name="original" width="3071" height="2048" loading="lazy" alt="Swarnim Wagle"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023051509058_597f098672a1d9ad83974ff68d78aa21d83473e9f7c63189edac995cd20fe0f0.jpg" data-media-id="editor_10" data-image-id="2023051509058_597f098672a1d9ad83974ff68d78aa21d83473e9f7c63189edac995cd20fe0f0" data-rendition-name="original" width="3113" height="2048" loading="lazy" alt="Amresh Kumar Singh"> </figure>  Singh added that this scandal marked a political turning point in Nepal and that the future and leadership of the three major political parties are at stake.&nbsp; The four speakers also discussed what the scandal meant for Nepal’s position on the global stage. “Not only political parties, Nepal’s credibility globally, and the people’s faith in the country are at stake,” said Singh.&nbsp; Wagle also spoke to the implications that the scandal could have for the <a href="https://www.nepalitimes.com/banner/migration-not-a-wish-but-necessity-for-nepalis">Nepali diaspora across the world</a>. “Nepal is not isolated anymore, and this scandal will impact the dignity and self-respect of the millions of Nepalis who have either temporarily or permanently migrated outside Nepal,” he said. Globally, geopolitically, and diplomatically, Nepal has historically been on the receiving end, as such the country’s development, economy and global standing is likely to suffer irreparable damage, Upadhyay explained.&nbsp; Meanwhile, Nilamber Acharya noted that there was no reason for Nepal and Nepalis to be embarrassed as long as investigation is moving along in the right direction. The media was also effectively playing a check and balance role in exposing wrongdoing. Said Acharya: “It is not yet time for us to hang our heads in shame on the global stage, as long as we ensure that the corrupt are held to account and justice is served.”

Shristi Karki

In a Federal Kleptocratic Republic of Nepal

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/6372214b9c7e80680e0c02abjpeg.jpg" alt="" width="800" height="466"/>After the Department of Land Transportation (DoTM) issued a 16 July deadline for vehicle owners in Nepal to replace current license plates with embossed ones, it has emerged that the company contracted to do so was blacklisted by the World Bank.The Nepal government repeatedly extended the $44 million contract it granted to a subsidiary of Tiger IT Bangladesh to install the computerised car plates which have camera-readable English digits, and an embedded chip that allows GPS tracking.Nepali Times has obtained official documents that show that on 24 April 2019, Tiger IT Bangladesh and its CEO Ziaur Rahman were blacklisted by the World Bank’s Sanctions Board for ‘collusive, corrupt and disruptive’ practices on a bid for one of its projects in Bangladesh.Read also:<a href="https://www.nepalitimes.com/latest/nepal-goes-electric-but-conditions-apply/"> Nepal goes electric, but conditions apply</a>, Ramesh Kumar<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/6372214d9c7e80680e0c02acjpeg.jpg" alt="" width="456" height="560"><figcaption> </figcaption></figure>The case was heard on 5 March 5 2019 at the World Bank's headquarters in Washington DC in presence of its vice-chair where it concluded, ‘The defendants were found to have colluded in barring open competition.’Tiger IT is said to have bribed top government officials, did not provide required details and documents to the World Bank, and ‘deliberately acted to materially impede the Bank’s investigation into the misconduct’. The company is barred from participating in any other World Bank projects for nine and a half years, and its CEO Rahman for six and a half years.Decatur-Tiger IT, a joint venture of Tiger IT Bangladesh and US company Decatur, was first awarded the contract on 30 May 2016 to install embossed number plates on vehicles in Nepal in a deal worth $43.787 million (Rs4.68 billion).Read also: <a href="https://www.nepalitimes.com/here-now/nepal-risks-being-blacklisted-on-money-laundering/">Nepal risks being blacklisted on money laundering</a>, Sharad Ojha<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/6372214f9c7e80680e0c02adjpeg.jpg" alt="" width="1231" height="487"><figcaption> </figcaption></figure>The initial agreement was to install number plates in 2.5 million vehicles in five years by mid-September of 2021. But after delays, the government renewed the contract for another two-and-half years despite knowing that the company had been sanctioned the previous year by the World Bank in its home country.In 2014, Tiger IT had won a World Bank contract for the 'Identification System for Enhancing Access to Service Project' to establish a secure and reliable national identity system in Bangladesh. But the Bank’s investigation found that Tiger IT and its French partner had committed  fraud to win the bid.Interestingly, Tiger IT has been involved in a slew of other projects in Nepal for the past decade. In 2013 it provided voter registration system software services to the Election Commission with support from the United Nations Development Programme (UNDP). The project, however, did not go ahead for unspecified reasons, but that is not mentioned on the company’s homepage.Read also: <a href="https://www.nepalitimes.com/here-now/nepals-richest-man-in-the-pandora-papers/">Nepal’s richest man in the Pandora Papers</a>, Nepali Times<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/637221519c7e80680e0c02aejpeg.jpg" alt="" width="761" height="397"><figcaption> </figcaption></figure>In 2010 it was involved in the conversion to machine-readable passports in Nepal in collaboration with France’s Oberthur Technologies.Experts find it fishy that a blacklisted foreign company has such insider access to successive governments in Nepal that it wins one controversial contract after another. The passport project was also mired in allegations of kickbacks in high places.The embossed number plate project has also been criticised because the letters and digits are in English and not Nepali when many countries in the region, including Bangladesh itself, have number plates with fonts of the country’s national language.The DoTM deadline requires all vehicles in Gandaki and Bagmati provinces to switch to embossed plates or face a fine. There is an elaborate online process to fill the forms in English, and the process is said to be cumbersome, opening the possibility of further corruption and payoff to middlemen at DoTM offices.Read also: <a href="https://www.nepalitimes.com/from-the-nepali-press/corruption-deep-rooted-in-government/">Corruption deep rooted in government</a>, Nepali Times

Embossed plate company involved in scam

<figure><img width="4208" height="2368" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721bf29c7e80680e0bd465jpeg.jpg" alt=""/><figcaption>Resunga tower in Gulmi. Photo: WIKIMEDIA COMMONS</figcaption></figure>Politicians at all three levels of government in Nepal appear to be racing against time to build a concrete view-tower on every mountain in the country, and a gate outside every town.It is not just a problem of misguided priorities, politicians know exactly what they are doing by putting up these non-essential monstrosities. It is kickbacks that are lubricating these contracts.So, instead of expanding health posts and hospitals, retrofitting school buildings to make them seismic resistant, or ensuring safe drinking water supply, elected people’s representatives are squandering taxpayer money on useless structures.“Nepal’s elected officials have clearly failed to address the true needs of the people, and are wasting money to line their own pockets,” the former official at the Ministry of Federal Affairs Purshottam Nepal puts it bluntly.It is not just view-towers, but high rises in the middle of nowhere, enormous statues of gods and saints, outsized cement replicas of fruits and products municipalities are famous for, and elaborate gates at the entrance of every town or village. A 80m high statue of the saint Byas is being constructed in Tanahu district at a cost of Rs450 million in the hope of attracting pilgrims to a place where the holy man was supposed to have meditated. In Morang, the Sundar Haraicha Municipality has started building the world’s biggest statue of a cow, lavishing nearly Rs1 billion in the project. Near Kathmandu, Kirtipur Municipality has already spent Rs37.5 million to build Manjushree Park and statue at Chobhar. It is soon planning to build one for Kirti Laxmi as well at a cost of Rs8 billion. Read also: <a href="https://www.nepalitimes.com/opinion/still-rising-nepal/" target="_blank" rel="noopener noreferrer">Still Rising Nepal</a>, AssBut Manjushree, Vyas and Kirti Laxmi are mythical figures. There is no historical proof that they actually existed. Says culture expert Basanta Maharjan: “There is no information or physical description of any of these characters for us to be building enormous statues with their imaginary features.”It is not just local government leaders that are at fault. They are just following the example of megalomaniac national leaders bent on leaving a permanent legacy. Former prime minister K P Oli set the stage by laying the foundation stone for a Rs2.5 billion view-tower project in Jhapa’s Damak last year. His rival Pushpa Kamal Dahal of the Maoist Centre was not far behind and inaugurated a $6 billion view-tower on a mountain top in Rolpa commemorating guerrillas killed during the insurgency. It was the Rolpa tower that thrust the view-tower building spree into sharp national focus with banner headlines in newspapers, and netizens pouring ridicule at the extravagance of building these edifices when adjoining government schools do not have proper classrooms and latrines. Bagmati Province has allocated Rs180 billion for over a dozen view-towers projects across central Nepal this year. Gandaki Province has budgeted Rs176 million to develop 44 tourist destinations, most of which will have view-towers on already lofty peaks. Province 1 has allocated a whopping Rs10 billion from its budget for view-towers in 16 sites across eastern Nepal. Even Madhes Province, which is in the Tarai, is putting up a view-tower on Narayan Danda overlooking the plains of Sarlahi district. To many, it appears like local governments have run out of places to dig new and poorly-engineered roads and have been attracted by erecting view-towers to impress voters before <a href="https://www.nepalitimes.com/banner/nepals-local-election-gives-power-back-to-people/" target="_blank" rel="noopener noreferrer">elections</a> this year. Read also: <a href="https://www.nepalitimes.com/editorial/edifice-complex/">EDIFICE COMPLEX</a>, Editorial <figure><img width="1800" height="790" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721bf59c7e80680e0bd466jpeg.jpg" alt=""><figcaption>Damak view-tower under construction. Photo: YAGYA RAJ ANGDEMBE/RSS</figcaption></figure>Lumbini Province, location of the birthplace of the Buddha, has allotted Rs20 million for statues of the Kanakamuni and Krikumuni avatars of the Buddhas in <a href="https://www.nepalitimes.com/banner/buddhas-birthday-in-his-birthplace/" target="_blank" rel="noopener noreferrer">Kapilvastu</a>. Sudur Paschim Province may lag behind the rest of the country in terms of development indicators, but when it comes to building view-towers it is right up there with the others. It has set aside Rs2.5 billion for a view-tower atop Kampasedhura peak in Kailali.  The list of view-towers under construction is long — there is an Rs5 billion tower coming up in Chandragiri and another Rs9 billion project in Rupandehi’s Tilottama.Municipalities that cannot build view-towers are putting up grandiose structures and high rises in the last remaining open spaces.Kathmandu Metropolitan City is building a 29-floor high rise at a cost of Rs5 billion near Tundikhel that is already an eyesore and will be a white elephant. Not to be outdone, Biratnagar is putting up its own high rise at a cost of Rs4 billion.   The only people who benefit from this wasteful spending are cement companies, and contractors. The people who need basic services like health, education, jobs and a clean living environment get nothing. <a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/feudalism-to-federalism/" target="_blank" rel="noopener noreferrer">Federalism</a> was supposed to inject more accountability — at least at the local level. The opposite seems to have happened in the past five years. National parties that control local governments and their budgets appear to be driven by the same greed and misplaced priorities as the national government.Politicians seem unwilling or unable to buck the trend. It could be because view-towers are easy to build, posts can be padded and accord a lot of opportunity for hidden over-invoicing, and the political party gets to show voters it is committed to ‘development’. Read also: <a href="https://www.nepalitimes.com/here-now/nepals-war-tourism-is-a-scam/">Nepal’s ‘war tourism’ is a scam</a>, Mahesh NeupaneMany environmentalists and even engineers have pointed out that Nepal’s high mountains are already so high that they serve as view-towers. Adding an extra few metres on them is illogical and adds nothing to the panorama. They say that if it is the vista that the planners want, viewing platforms would be more appropriate. “Compared to multi-propose projects that can help increase economic activities for the locals, building a view-tower is economically wasteful and an obsolete idea,” says Krishna Prasad Sapkota, former District Development Committee chair of Kavre. This does not deter politicians. The view-tower building spree seems unstoppable. Kaski, Nagarkot and Bandipur are building towers as we speak. Inspired by the Great Wall of China, Helambu Rural Municipality is constructing a 60km stone trail, dubbed ‘the Helambu Great Trail’. Chair Nima Galgen Sherpa boasts that his pet project will cost Rs3 billion, and will “attract tourists” to his district north of Kathmandu.All these view-towers have one thing in common: they are of no help to the local people — they serve no purpose, economic or otherwise. There is no business plan or an analysis of return on investment.  Udaypur’s Lumchungbung Municipality has prepared a project report for an Everest View Tower on a hilltop from which the world’s highest mountain is sometimes visible through the clouds and haze. How will this Rs90 million view-tower benefit the municipality’s 12,000 population? How will it or other view-towers in any way ensure better governance or improve the living standard of people? “The government’s priority should be on skills development, enterprise, education and health,” says former secretary of Local Development, Khemraj Nepal. “But all three levels of government are straying away from their responsibility towards the people.”The priority of the representatives we elected to power should be improving health posts, community schools, food security and sanitation, he says. These are necessities, and view-towers are an extravagance and a waste of time and taxpayer money. Read also: <a href="https://www.nepalitimes.com/latest/infrastructure-for-wildlife-in-nepal/">Infrastructure for wildlife in Nepal</a>, Biraj Shrestha and Pramod NeupaneAdapted from the <a href="https://www.himalkhabar.com/news/13342">Nepali original</a> at <a href="http://himalkhabar.com/">himalkhabar.com</a> by Aria Parasai

Nepal’s shortsighted view-tower craze

<figure><img width="1200" height="1584" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161148/636d1dae9c7e80680e0af3cfjpeg.jpg" alt=""/><figcaption>Illustration: BHANU ACHARYA/NEPALI TIMES</figcaption></figure>During the 2017 elections, Baburam Bhattarai’s Naya Shakti Party propped up the Nepali Congress (NC) elsewhere across the country while seeking support in Gorkha, where Bhattarai himself would run, and Rasuwa where his party’s Prem Tamang was contesting.
But when it came time to register his candidacy, Tamang withdrew from the MP race and chose to run for state assembly instead, putting his support behind billionaire businessman Mohan Acharya, the bankroller of the NC.
Read also: <a href="https://www.nepalitimes.com/here-now/purchasing-power/" target="_blank" rel="noopener noreferrer">Purchasing power</a>, Ramesh Kumar
Acharya had registered his candidacy after convincing party chair and prime minister Sher Bahadur Deuba, presumably with money being exchanged, to let him run for office.
The construction <a href="https://archive.nepalitimes.com/article/nation/bulldozing-democracy-in-nepal,4184" target="_blank" rel="noopener noreferrer">contractor who spent a lot more money</a> while campaigning, would go on to win Rasuwa. A year later during an interview, Bhattarai himself accused his party colleague Tamang of selling out his candidacy to Acharya.
Acharya’s opponent was Janardhan Dhakal, another construction businessman who had the UML ticket. The race in Rasuwa was therefore a battle between who could spend more money. Both candidates hosted lavish parties, had extravagant motorcades, and distributed cash to buy vote banks.
What happened in Rasuwa in 2017 is a reflection of <a href="https://www.nepalitimes.com/latest/the-business-of-politics-in-nepal/" target="_blank" rel="noopener noreferrer">Nepal’s current electoral system</a> — competent candidates have no chance against powerful tycoons who have bought election tickets from party bosses.
Even as they spend extraordinary money to woo voters, Nepal’s political parties have failed to be transparent about their funding in official reports.
Donations from businesses are the primary source of funding for all political parties, and that is where the rot sets in.
However, the amount of financial support received from well-wishers, supporters and businesses are not broken down in the accounts of any of the parties. In fact, they are not mentioned at all.
Read also: <a href="https://www.nepalitimes.com/latest/is-democracy-too-expensive-for-nepal/" target="_blank" rel="noopener noreferrer">Is democracy too expensive for Nepal?</a>, Laxmi Basnet
The fact that all financial assistance is provided in cash and not through the banking system makes it easy for parties to circumvent institutions that oversee election management, even though The Political Parties Act 2017 stipulates that any transactions above Rs25,000 should go through the banking system along with the details of donors.
There is a similar lack of transparency when it comes to details about any fixed assets in the parties’ audit report. In many cases, private donors pick up the tabs for the renovation of party offices just to be above the board, like what the NC’s Umesh Shrestha did to get himself appointed minister by Prime Minister Deuba.
<a href="https://www.nepalitimes.com/here-now/the-business-of-politics-undermines-nepals-democracy/" target="_blank" style="font-size: 15px; letter-spacing: 0.01em;" rel="noopener noreferrer">Nepal’s politico-business nexus</a> began during the post-Panchayat era after the multiparty system encouraged collusion and quid pro quo. This co-dependency between business and politics became more embedded in subsequent elections.
“When political parties have to spend money to win elections, they start cultivating businessmen and then it is you scratch my back, I’ll scratch yours,” explains economist Keshav Acharya.
Over the years, watching from the sidelines was not enough, and Nepal’s rich directly entered politics as the country began its transition into a federal republic following the end of the Maoist conflict.
Former Finance Secretary Rameshore Khanal resigned in 2011 after Finance Minister Bharat Mohan Adhikari sought the counsel of <a href="https://www.nepalitimes.com/here-now/nepals-richest-man-in-the-pandora-papers/" target="_blank" rel="noopener noreferrer">industrialist Binod Chaudhary</a> during the budget formulation process. He says Nepal’s political parties are at present governed not by institutional systems but the will of individual leaders who mobilise money by helping businessmen launder theirs.
“This practice was introduced by Girija Prasad Koirala in the NC and has been continued by both UML Chairman K P Sharma Oli and Maoist Chairman Pushpa Kamal Dahal,” says Khanal.
Indeed, public sector enterprises like Harisidhi Brick and Bhrikuti Paper Factory were privatised under the first elected government led by Girija Prasad Koirala, and turned into prime real estate.
The Ministry of Finance refunded value-added tax (VAT) to entrepreneurs on consumer goods for almost a decade after 2008, essentially putting VAT paid by Nepali citizens into the pocket of businesses, prompting questions of policy irregularities by the IMF.
Similarly, other NC leaders like former finance minister Ram Sharan Mahat formed the Tax Commission in 2014 which gave tax cuts worth Rs21 billion to big businesses, the case related to which is still pending in the courts.
More recently, Finance Minister Janardan Sharma is alleged to have made policy changes to benefit special interests, like the Shanker Group, through a bill to replace the budget brought by the Oli government.
Of late, businesses have also been actively involved in the infighting within parties that has characterised recent Nepali politics.
The photo of NCP co-chairs K P Oli and Prachanda having lunch with <a href="https://www.nepalitimes.com/editorial/red-rice/" target="_blank" rel="noopener noreferrer">red rice at the home of business tycoon Durga Prasai</a> to discuss party unity went viral and prompted widespread ridicule.
The two leaders also held several discussions at the residence of construction contractor Sharada Prasad Adhikari who was untouchable because of his proximity to Dahal, as well as at homes of businessmen like Niraj Govind Shrestha and Ajeya Raj Sumargi. Sumargi often acts as a frontman for Dahal’s business dealings.
Businessmen like Capt Rameswar Thapa and Moti Dugar were actively involved in negotiations related to party unification between UML leaders K P Sharma Oli and Madhav Kumar Nepal, who often met at their private residences.
Similarly, Oli's name has been linked to the Yeti Group, and the <a href="https://www.nepalitimes.com/opinion/so-far-so-good/the-silent-skies/" target="_blank" rel="noopener noreferrer">death of its founder Ang Tsering Sherpa</a> in a helicopter crash in 2019 was a big blow to the former Prime Minister who had close personal dealings with him. Sherpa served as Oli’s fixer and was rewarded with coveted real estate and other deals for his conglomerate.
Entrepreneurs who transition into politics do so with the intention of influencing the state machinery to get business-related benefits. Moreover, interactions between business and politics are not limited to Nepali figures, as evidenced by the audiotape of Krishna Bahadur Mahara asking a Chinese businessman for Rs500 million on behalf of the Maoists during Constituent Assembly elections in 2013.
To be sure, politicians have always been making licensing and policies easier at the behest of banking, insurance, medical education, telecommunications, as well as in the stock market, allowing a select few to take advantage of the resulting decrease in competition.
Congress leader and former vice-chairman of the National Planning Commission Govinda Raj Pokhrel notes that money has become the lubricant in Nepali politics. In fact, voters themselves seem to seek out leaders who can take care of their financial interests.
“Unless we clean up our democratic system, our democracy is headed to the edge of a cliff,” he says.
<a href="https://archive.nepalitimes.com/regular-columns/guest-editorial/Electoral-reform,1083" target="_blank" style="font-size: 15px; letter-spacing: 0.01em;" rel="noopener noreferrer">Former Election Commissioner chief Bhoj Raj Pokhrel</a>, in his recent article 'Political Finance Management: Opportunities for Electoral Reform' has proposed ideas for electoral reform, including the provision of grants to political parties to manage election-related expenses.
This proposal is not a new concept. Past governments have discussed this and former Finance Minister Prakash Chandra Lohani even made a related proposal in the 2004 budget.
UML leader Surendra Pandey argues that if political financing is to be made transparent, the government should provide financial support based on the votes received by each party.
Former Finance Secretary Rameshore Khanal argues that political parties should seek donations from Nepali citizens, which would consequently make them more accountable to the public.
Achyut Wagle, a professor of economics at Kathmandu University, notes that while government funding for parties is a viable option in an ideal democracy, it is questionable whether a country like Nepal can do it honestly.
Says Wagle: “It is more important to have transparency in political financing. Selling political positions for money has become the norm, and we need to ensure a democracy where businessmen cannot buy their way to power.”

The business of politics

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151120/636d09149c7e80680e0a6056jpeg.jpg" alt="" width="1500" height="1000"/><figcaption></figcaption></figure>Nepal is serious about democracy, and that is why we have to keep restoring it every decade or so because we believe in government for the people, by the people, and for the people in government.We also put our faith in reincarnation, and that explains the pressure from some quarters to put the resurrection of the monarchy to a referendum vote, and await His Majesty’s Second Coming.It is a sign of a well-functioning and mature democracy that parliamentary affairs are run by committees. When a dispute cannot be settled without comrades coming to blows, they set up a Special Committee which immediately forms a Sub-Committee to address grievances, and which decides to form a Task Force that will oversee a Working Group made up of members of an Expert Panel.This being Nepal, even the membership of the Special Committee will be challenged in the Supreme Court, and that is when they will have to establish a Dispute Resolution Caucus made up of Caucasian males.And when there is a dispute in the Dispute Resolution Caucus, Nepal’s leaders can fall back on extra-Constitutional means to resolve ego clashes and malcontent members ticked off because they did not get to be made Minister of Midwifery and Animal Husbandry as a reward for helping topple the previous regime.And that is exactly what Prime Minister Dubya has gone and done. To balance both disgruntled and gruntled factions of the five-party alliance, he has constituted a three-member High-level Political Mechanism to decide who gets to be minister of what.This Unholy Trinity is made up of individuals who think they should be in power but aren't. PKD was PM twice, and sorely misses it. MKN is still grumpy even though he toppled KPO. And SBD has found out that one can be prime minister five times in this country even if one loses an election.Maybe we do need new mechanics to fix this mechanism called Nepal. Could it be that the three leaders are so high-level that they need supplemental oxygen just to climb up the stairs at Paris Danda? Soon, there is going to be a power struggle about who is the highest among the high-level members of the Mechanism, the Grand Ayatollah of the Mechanists.Our best bet may be to set up a Not-so-high-level Non-political Mechanism (NSHLNPM) to appoint ministers by lottery to a Jumbo Cabinet. We are on the right track, though, going by making the owner of a hospital chain the Health Technocrat. In the same manner, the Educationist Minister should be none other than the Chair of PABSON, the Hydropowerful Minister can be the CEO of IPPAN, the Physical Infrastructure Minister should go to the Chairperson of the Federation of Tipper Truck Owners of Nepal.Nepal’s problems are so intractable that thank goodness we have a fall back option: an Even-Higher-Level Political Mechanism that includes India, China and the G7.

The Ass

Hi-Level Mechanism

<img width="640" height="269" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121152/636ce60d9c7e80680e096746jpeg.jpg" alt=""/>The Supreme Court on Tuesday declared the Commission for the Investigation of Abuse of Authority's  (CIAA) use of <a href="https://www.nepalitimes.com/here-now/labour-recruiter-netted-in-sting-raid/">sting operations</a> unconstitutional, putting an end to two decades of scare-mongering fueled by personal agenda and impunity.Acting on a petition filed by Advocate Bishnu Prasad Ghimire, the Constitutional Bench of the SC led by Chief Justice Cholendra Shamsher Rana declared the provision for sting operations set out by CIAA Rule 30 (2002) as contrary to the spirit and essence of the Constitution. “The nature of the stipulated provision is found to be encouraging the investigating officer to act in an arbitrary way”, the brief judgment issued today stated. Decried by critics as a tool to further personal interests, Rule 30 gave CIAA operatives the power to procure and set up bribes for stings and exempted them from constitutional law which criminalises the giving of kickbacks.Opportunists then exploited this loophole, conspiring with operatives to set up bribes and implicate low-level employees they had disagreements with.Enforcement of Rule 30 was noticeably higher, and random, over the last few years. Of 206 cases of graft registered in the Special Court by the CIAA last fiscal year, 181 had sting operations, from which 99 involved kickbacks less than Rs 25,000.There were 277 arrests, among whom 69 ranked as non-gazetted officers or lower and 16 were office peons. It is clear that the CIAA is focused merely on the ‘easy work’ of luring low-ranked officers and making arbitrary arrests in an extralegal manner. As the CIAA goes around chasing after small-time offenders and innocents, corruption in the larger scale flourishes. Over the last three years, only four percent of cases registered by the CIAA concerned serious offences, including revenue embezzlement and illegal acquisition of property. “Despite the instructions of the parliamentary committee and the emergence of huge scandals such as Ncell and Wide Body, the CIAA has failed to conduct any meaningful investigation.” says former Chairman of the Special Court Gauri Bahadur Karki. “Sting operations are their way of fudging case numbers to inflate performance.”     <a href="https://www.nepalitimes.com/latest/ciaa-traps-small-fish-lets-big-ones-go/">A Centre for Investigative Journalism (CIJ) report</a> in July last year detailed instances where sting operations had led to arrests of low-level employees.For example, contractor Sujan Poudel filed a complaint at the 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. 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. Rai later accused Poudel of framing him because he had taken action against the contractor for illegal sand mining and quarrying. “CIAA can file corruption case if someone is caught taking a bribe,” said constitutional expert Bhimarjun Acharya told CIJ then, “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.”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.

corruption