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

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SLAPPing Democracy

A cabinet meeting last week appointed former journalist Sharad Ojha as the chair of the Nepal Insurance Authority, the regulator of the sector. Ojha has no qualifications for the post as required by Nepal’s Insurance Act.&nbsp;
His family ties to Nepali Congress president <a href="https://nepalitimes.com/news/deuba-5-qh371fm4">Sher Bahadur Deuba</a> has been cited as the reason he got to bypass appointment criteria.
This is just the latest example. Bending the law to appoint <a href="https://nepalitimes.com/here-now/nepal-s-crony-communism-exposed">cronies</a> and special interest groups to leadership positions in regulatory bodies has <a href="https://nepalitimes.com/editorial/crony-communism">become the norm in Nepal</a>.
Ojha’s predecessor was former Home Secretary Surya Prasad Silwal, who was suspended two months before the end of his term in December after the <a href="https://nepalitimes.com/news/ciaa-traps-small-fish-lets-big-ones-go">Commission for the Investigation of Abuse of Authority (CIAA)</a> filed a corruption case against him in the Special Court. Days after Ojha’s appointment, the court cleared Silwal of corruption charges.
Read also: <a href="https://nepalitimes.com/search?q=corruption+case">Nepal’s corruption carousel</a>
Before Silwal, the Nepal Insurance Authority was led by Chiranjivi Chapagain, a relative of Chandra Dhakal of the IME Group. Chapagain is accused of granting approval to 10 insurance companies under dubious circumstances and favouring <a href="https://nepalitimes.com/business/ime-insurance">IME Life Insurance’</a>s approval.
Meanwhile, intense lobbying by interest groups with ties to both <a href="https://nepalitimes.com/news/nepal-government-changes-again">Prime Minister Oli</a> and PM-in-waiting Deuba allowed Santosh Narayan Shrestha’s appointment as the chair of the Securities and Exchange Board of Nepal (SEBON) in December. Shrestha promptly paid his dues to the groups that put him in office by making preparations to grant them permission to operate stock exchange.
Shrestha was preceded by hotelier Ramesh Kumar Hamal, the recommendation procedure and committee for whom were changed to ensure his appointment.
During his tenure, Hamal hastily amended a law that allowed specific companies to sell premium stocks amid ongoing debates, &nbsp;and another one allowing the operation of stock exchanges with private sector investment instead of public companies. None of this raised eyebrows.
Hamal’s predecessor Bhishma Raj Dhungana, a former Nepal Rastra Bank official, was dismissed as SEBON chair following allegations of irregularities.&nbsp;
Most of these recent individuals were appointed heads of regulatory bodies under PM Oli and Finance Minister Bishnu Paudel and probably at their behest.
The appointments at the Nepal Insurance Authority and SEBON reflect a blatant disregard for the <a href="https://nepalitimes.com/opinion/federalism-rule-of-law-and-the-judiciary">rule of law</a>. Such practice is also rampant in the cooperatives and real estate sectors, where <a href="https://nepalitimes.com/here-now/nepal-risks-being-blacklisted-on-money-laundering">illegal financial dealings</a> and bad faith business is modus operandi.
Meanwhile, Energy Minister Deepak Khadka, also a hydropower entrepreneur, is set on ousting <a href="https://nepalitimes.com/from-the-nepali-press/more-than-half-of-nepal-s-electricity-imported-from-india">Nepal Electricity Authority (NEA)</a> managing director <a href="https://nepalitimes.com/latest/kulman-ghising-to-stay-on">Kulman Ghising</a>. He previously ordered the removal of Dudhkoshi Hydropower Project CEO Bimal Gurung for criticising him on <a href="https://nepalitimes.com/news/no-comment">social media</a>.&nbsp;
The minister has a major conflict of interest because of his involvement in private energy sector, and is pressuring parliamentary committees and regulatory bodies to amend the law to allow the sale of 50% of the shares of <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">hydropower projects </a>during the so-called 'lock-in period', which prevents the sale of promoter shares.
Now, lobbyists have set their sights on the Nepal Rastra Bank (NRB). Maha Prasad Adhikari’s tenure ends in April, and the same groups behind the appointment of the chiefs of regulatory bodies like SEBON and Nepal Insurance Authority are going door to door of governing coalition leaders to have their candidate appointed.&nbsp;
The book Why Nations Fail by Daron Acemoglu and James A. Robinson—co-winners of last year’s Nobel Prize for Economics with economist Simon Johnson—describes how public institutions are misused, weakened, and pushed toward failure by those with access to power.
Regulatory bodies are crucial to maintaining fair competition and ethical market practices. They exist to serve Nepal’s public. However, they are being deliberately undermined by special interest groups paying off authorities for plum positions that will enrich them and their political patrons. &nbsp;
The government ordered the Department of Money Laundering to ‘wait’ as the body sought permission to take action against Ajeya Sumargi for illicit dealing.
It was thus unsurprising that the Financial Action Task Force (FATF) placed Nepal on its grey list in February for failing to take effective and result-oriented action to prevent money laundering.
Read also: <a href="https://nepalitimes.com/news/black-white-and-grey">Black, white and grey</a>, Ramesh Kumar
The international community has raised a red flag against malgovernance, political interference, conflicts of interest, and impunity. The world is watching, but Nepal’s politico-corporate interests are too deep in greed to care.
Ramesh Kumar

Public-Private Collusion

Nepal Rastra Bank Governor Maha Prasad Adhikari said last month that an assessment by the Asia/Pacific Group on Money Laundering (APG) had put Nepal at risk of being placed on the grey list of the Financial Action Task Force (FATF), the global money-laundering watchdog.
The final decision will be made during the FATF plenary 17-21 February in Paris. The country was previously greylisted from 2009-2014.
The watchdog had advised legal, policy and <a href="https://nepalitimes.com/news/near-debt-experience">structural reforms for Nepal</a> to implement within a year. And while some laws were amended, implementation is another story.&nbsp;
“Nepal’s FATF rating has deteriorated due to the inaction against major cases of <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">corruption</a>, tax evasion, and abuse of financial institutions,” explains Rup Narayan Bhattarai, former Director General of the Department of Money Laundering Investigation.&nbsp;
Sticking to the tradition of blame game, <a href="https://nepalitimes.com/news/nepal-government-changes-again">Prime Minister KP Oli</a>, has blamed the delay in legal reforms on the previous Pushpa Kamal Dahal government.
The APG— of which Nepal has been a member since 2002— is an associate member of the FATF. The organisation had already placed Nepal on the observation list for failing to amend and implement necessary laws to prevent <a href="https://nepalitimes.com/news/nepal-figures-in-leaked-money-laundering-report">money laundering</a> after an evaluation last year.&nbsp;
The assessment looked into Nepal's efforts to combat money laundering in two parts: the first one being technical compliance— the legal and structural reforms to prevent money laundering— and the second being the effectiveness of their implementation.
Nepal has achieved relatively satisfactory results with technical compliance— the assessment found that the country had abided by at least 21 of the 40 criteria laid out by the FATF. Since the evaluation, Nepal has amended and enacted additional laws to meet an additional 10 criteria.&nbsp;
However, the evaluation found the country’s progress in effectively implementing laws to prevent money laundering to be very weak, with Nepal only ‘moderately compliant’ with four out of the 11 standards.
Bhattarai points to the lack of transparency and commitment to preventing money laundering. “It is not enough to just make laws and regulations, they must be implemented and produce noticeable results,” he says. “But we have failed to see such results, due to which our country’s international standing has deteriorated.”
Cooperatives and real estate transactions have also long been used to conceal and legitimise ill gotten wealth. Cooperatives are reluctant to provide details of suspicious financial transactions.
Read also: <a href="https://nepalitimes.com/here-now/cooperatives-leave-nepalis-high-and-dry">Cooperatives leave Nepalis high and dry</a>, Ramesh Kumar
“International authorities have taken issue with the absence of a strong legal and structural system to prevent money laundering in cooperatives and real estate,” says a government insider. “They are well aware of the absence of political will to monitor these sectors.”
In 2023, while banks and financial institutions reported details of 6,255 suspicious transactions to the Financial Intelligence Unit, cooperatives reported only two.
Following an objection by the APG last year regarding large amounts of black money circulating in cooperatives, legislators introduced a proposal to amend the Cooperatives Act to set an individual deposit limit of Rs2.5 million in cooperatives.
But the proposal was rejected after pressure from lobbyists as well as parliamentarians connected to the cooperatives sector.&nbsp;
In December, the government issued an ordinance to amend cooperative-related laws which included a provision allowing depositors to save up to Rs5 million in cooperatives depending on the scope of the institution.&nbsp;
Meanwhile, real estate agents in Nepal do not require a licence, and the government’s flexibility to accommodate <a href="https://nepalitimes.com/news/the-business-of-politics-in-nepal">wealthy businessmen</a> has meant there are no institutions to keep track of land and property dealings and investigate the suspicious financial activity.&nbsp;
“There is no monitoring to see who is buying and selling real estate at what price, and there is no legal framework to prevent money laundering in<a href="https://nepalitimes.com/here-now/kathmandu-s-unreal-real-estate-prices"> real estate</a>,” says the Nepal government official.&nbsp;
Casinos are also a breeding ground for laundering money, also lack a strong regulatory system.
Another shortcoming pointed out by the APG are delays in and ineffectiveness of investigations and prosecutions relating to money laundering. There has been international attention on scams like the Nepal Airlines Corporation Airbus 330 purchases.
In fiscal year 2022/2023, the Financial Intelligence Unit received 7,115 reports of suspicious transactions and activities and sent 505 cases for investigation. But only a few of them were ever investigated.
The Department of Money Laundering Investigation only took 12 cases to court during the first 6 months of this fiscal year and had similarly taken only a dozen cases involving a total of Rs1.74 billion last year.&nbsp;
The department was hastily set up in 2011 after the FATF warned that Nepal would be blacklisted, but so far, it hasn’t gone beyond appeasement and whitewashing.
“If money laundering cases are to be investigated, they would involve either those at the upper echelons of power or those connected to them,” a former government official who worked at the department told us, “How then would any investigation move forward?”
The Home Ministry has also been slow to prepare a list of people suspected of terrorist activities and make such a list available for monitoring even though it is an international requirement.&nbsp;
Nepal has also not worked on a new assessment report to recommend measures to prevent money laundering since the last report was prepared in 2020.
Nepal will most certainly be on that grey list later this month, and this will negatively impact the country’s reputation on the global stage as well as its foreign investment prospects.&nbsp;
In December, Nepal had received a ‘BB-’ rating from the US credit rating agency Fitch, becoming the second-highest rated country in South Asia, after India. Government officials have been suggesting that this raiting would help attract foreign investment.
As it stands, financial institutions here may bear the brunt of the grey list status. Banks may find it difficult to conduct international transactions, and transaction costs may rise, which will in turn make imports more expensive and hinder exports.&nbsp;
Nepal being on the FATF grey list also means that the government will find it more difficult to obtain financial assistance and concessional loans from donor countries and international organisations. Interest rates on loans taken by Nepal’s government and private financial institutions from abroad will also go up.
Additionally, as soon as Nepal is placed on the grey list, financial institutions will begin to closely monitor transactions made by the <a href="https://nepalitimes.com/editorial/brain-drain-into-brain-gain">diaspora around the world</a>, which will affect Nepali students and <a href="https://nepalitimes.com/here-now/a-long-way-to-europe">migrant workers</a> seeking to open accounts in foreign banks, as well as those <a href="https://nepalitimes.com/editorial/the-new-equaliser">sending remittances back home</a>.&nbsp;
“Any obstacles in the flow of remittance through official channels will spell a disaster for Nepal’s economy,” a government official told us.&nbsp;
Nepal government and relevant authorities must actively try to get out of the grey list as soon as possible. The FATF and APG will give Nepal a year to get off the list of countries at risk, failing which Nepal will be placed on the blacklist and be isolated from the global stage.&nbsp;
Says Bhattarai: “It is not enough to have made laws, we need results. Nepal must be committed to acting against leaders, lobbyists, and those with access and connections involved in criminal financial dealings.”

Black, white and grey

Corruption is conventionally – and misleadingly – measured as a one-dimensional problem. Global corruption indices, including Transparency International’s Corruption Perceptions Index (CPI) and the World Bank’s Control of Corruption Index, assign a single score to countries.&nbsp;
These metrics consistently show that rich countries are ‘very clean’ while poor countries are ‘highly corrupt’. For example, the 2023 CPI ranks the United Kingdom (scoring 71) as the world’s 20th least corrupt country, much cleaner than China (42) and Brazil (36). Most CPI users, including media outlets, companies, and analysts, interpret these numbers as a fact.
But are richer countries really less corrupt than poorer ones? One-dimensional metrics like the CPI obscure the fact that qualitatively different varieties of corruption cannot be reduced to a single score.&nbsp;
These metrics also systematically under-measure the corruption of the rich, which tends to be legalised, institutionalised, and ambiguously unethical, as opposed to corruption of the poor.
In poorer countries, corruption takes clearly illegal and outrageous forms, such as stealing public funds and taking bribes. In rich countries, by contrast, many believe the problem has disappeared.&nbsp;
Read also: <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">Nepal’s corruption carousel</a>, Editorial
In The Quest for Good Governance, Alina Mungiu-Pippidi even concludes that advanced economies have reached an end state of ‘ethical universalism’, where ‘equal treatment applies to everyone’. Britain is ‘the classic historical performer’ in this respect, followed by ‘British empire splinters populated mostly by populations of European descent’. In short, the rich West is clean.
But given the rise of populism in high-income democracies today, much of it a backlash against the outsize advantages enjoyed by the rich and politically connected, 'ethical universalism' seems more illusory than real. As a blistering 2020 exposé by the New York Times revealed, half of UK government contracts for medical supplies during the Covid-19 pandemic went to ‘companies run by friends and associates of politicians' through a special ‘VIP Lane’.
How, then, did the CPI rank the UK as the 20th least corrupt country? The score is based not on surveys conducted internally by Transparency International, but on a combination of various third-party polls. Almost all of these come from Western organisations such as the Economist Intelligence Unit, and they tend to rely heavily on responses from Western business executives.
Moreover, the wording in these surveys is often vague. For example, the World Competitiveness Yearbook, one of CPI’s sources, presents business executives with a crude binary choice: ‘Bribery and corruption: exist or do not exist.’ No wonder the CPI shows that rich countries are ‘very clean’ year after year, even as their ordinary citizens disagree.
Recognising that there were no alternatives to these conventional metrics, despite numerous critiques, I piloted the Unbundled Corruption Index (UCI) which is a perceptions-based metric of corruption that relies on expert surveys.&nbsp;
Read also: <a href="https://nepalitimes.com/news/heads-roll">Heads roll,</a> Nepali Times
However, it unbundles corruption into four distinct varieties: petty theft (extortion by street-level officers), grand theft (embezzlement by politicians), speed money (small bribes to overcome bureaucratic hurdles or harassment), and access money (big payoffs in exchange for exclusive, lucrative privileges such as contracts and bailouts).
While the first three varieties of corruption, the ones endemic in poor countries, are brazenly unlawful and directly harmful, access money might be illegal (as with bribery) or permissible (as with campaign finance). Sophisticated methods of buying privileges may involve entire institutions where no individual is corrupt.&nbsp;
For example, money laundering, for which London is a known hub, can involve moving funds seamlessly across borders through widely respected financial institutions. In the United States, banks collectively spent billions lobbying for lax regulations, leading to the 2008 financial crisis, yet only one banker was indicted.
The UCI uses an original expert survey to rate all four types of corruption. To improve the quality of measurement, I employ stylised vignettes that ask respondents to rate the prevalence of specific representative scenarios rather than overall corruption levels.&nbsp;
In my prototype covering 15 countries each country’s total UCI score appears at the top and is broken down into the four categories of corruption. Now we can compare not only aggregate levels of perceived corruption, but also the type and configuration of corruption across countries.
Read also: <a href="https://nepalitimes.com/editorial/nepal-gets-gold-medal-for-corruption">Nepal gets Gold Medal for corruption</a>, Editorial
One illuminating comparison is between the US and China. The US is less corrupt than China overall, but the gap is narrowest in the category of access money, the dominant type of corruption in both countries. Notably, America’s access-money score is higher than that of lower-income countries like Thailand and Ghana. If we relied solely on bundled scores, we would conclude that the US is clean. But once the scores are disaggregated, we can explain the appeal of populist promises to ‘drain the swamp’.
Even more interesting is that different forms of access money prevail in the US and China. In a comparison based on a vignette about bribe-taking through politicians’ personal networks, China clearly dominates. Yet when we turn to revolving door practices and regulatory capture through lobbying, the US takes the lead.
In short, access to money in the US is primarily institutional, whereas the problem in China is still enmeshed within personal relationships involving bribery and piles of buried cash. China isn’t necessarily more corrupt than the US, but its corruption certainly has a different quality.
Mismeasuring corruption is no mere technicality. Fundamentally, it reinforces the illusory, hypocritical, and often Eurocentric message that high-income countries have achieved a lasting state of ethical purity. In reality, corruption did not necessarily disappear as countries grew richer – rather, it evolved, becoming more sophisticated and imperceptible.
We must continue to fight ‘corruption of the poor’, but by unbundling corruption, capitalist democracies can also direct urgently needed attention toward some of their most pressing problems, including rising inequality, declining public trust in government, and what USAID Administrator Samantha Power calls “modern corruption” (such transnational networks of illicit finance). Overcoming these challenges requires measuring them accurately, rather than pretending they don’t exist. &nbsp;
Read also: <a href="https://nepalitimes.com/news/rot-at-the-top">Rot at the top</a>, Shristi Karki
© <a href="https://www.project-syndicate.org/commentary/corruption-perception-index-does-not-give-the-whole-picture-by-yuen-yuen-ang-2024-03">Project Syndicate</a>
Yuen Yuen Ang, Professor of Political Economy at Johns Hopkins University, is the author of How China Escaped the Poverty Trap - Cornell University Press, 2016) and China’s Gilded Age (Cambridge University Press, 2020).

Mismeasuring corruption lets rich countries off the hook

Nepalis are proud to proclaim that the Buddha was born in Nepal, but the over-development of <a href="https://nepalitimes.com/here-now/telling-the-story-of-buddha-s-lumbini">Lumbini</a> may mean that the nativity site could be struck off the World Heritage Sites listing. &nbsp;&nbsp;&nbsp; Nepal is internationally recognised for its cultural landmarks and their protection, but &nbsp;corruption, commercialisation and over-development are endangering sites like Lumbini and Pashupatinath Temple.&nbsp; World Heritage Sites are designated by UNESCO for their historical, cultural or natural significance, and Nepal has four landmarks in the listing: Kathmandu Valley, Sagarmatha National Park, Chitwan National Park and Lumbini.&nbsp; It is difficult to be struck off the list, but UNESCO can put some landmarks in the List of World Heritage in danger. The spotlight is now on Lumbini and Pashupati because of recent construction. U Thant, the United Nations Secretary-General from Burma who <a href="https://nepalitimes.com/here-now/u-thant-kenzo-tange-and-the-buddhas-birthplace">visited Lumbini in 1977</a>, hired famous Japanese architect Kenzō Tange to devise a masterplan for the site. It has taken nearly 40 years for Tange’s scheme to more or less be put together, but the Lumbini Development Trust (LDT) has been flouting the Tange design. For example, a concrete and glass structure is coming up right next to Mayadevi Temple, an area of unexcavated archaeological significance. More recently, LDT announced that it was <a href="https://nepalitimes.com/news/lharkyal-lama-s-lumbini-inc">leasing out to a private company</a> for 99 years the sacred Ramgram Stupa, 35km east of Lumbini, one of eight sites in the Subcontinent with corporeal remains of the Buddha. &nbsp;&nbsp;&nbsp; The plan was cancelled in January by Parliament’s Public Accounts Committee which also demanded a corruption probe into the Rs7 billion deal to lease 81 hectares around Ramgram for 99 years. The deal was to the Singapore-based Moksha Foundation and its Nepali counterpart The Promised Land, owned by Prime Minister Pushpa Kamal Dahal’s landlord’s son.&nbsp; LDT is now headed by political broker and shady former lawmaker Lharkyal Lama, who was appointed by Prime Minister Dahal despite knowledge about his murky past. &nbsp; Neither the Ministry of Culture nor the Department of Archaeology had prior knowledge of the Ramgram proposal, and this lack of oversight and accountability has further eroded the LDT’s credibility, increasing concern about conflict of interest and political patronage.After the controversy erupted, an LDT executive committee meeting shelved the Ramgram agreement. &nbsp;&nbsp; The Heritage Site listing doubts come just as another ancient Buddha-era settlement of Tilaurakot near Lumbini is about to be added to the UNESCO Heritage List.&nbsp; Meanwhile, in Kathmandu, the Pashupati Area Development Trust (PADT) also faces the risk of having one of Hinduism’s holiest shrines delisted from the World Heritage Sites.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024032213038_4d830080d521db354a577a999e97d850282dab6cbf6795b04cab76535d1300cc.jpg" data-media-id="editor_3" data-image-id="2024032213038_4d830080d521db354a577a999e97d850282dab6cbf6795b04cab76535d1300cc" data-rendition-name="original" width="1574" height="1000" loading="lazy" alt="Pashupati NT"> </figure>  The reason is similar to what has tainted Lumbini: political interference. LDT and PADT are chaired by the Minister of Civil Aviation and Culture, but are supposed to operate autonomously from the government. The minister has just been replaced by another Maoist confidante of Dahal, Hit Man Tamang. PADT’s director Laxmi Pun was suspended soon after her appointment because she did not meet qualifications for the job. There is also a brewing controversy involving the Digital Copyright Act about the right to film the Ganga Arati evening prayer ritual at <a href="https://nepalitimes.com/here-now/the-healer-of-pashupati">Pashupati</a> by the entertainment company Budha Subba Digital.&nbsp; The company says it signed a deal with PADT, but this is denied by spokesperson Rewati Raman Adhikari whose signature is on the agreement between Budha Subba Digital and PADT. Now, both PADT and Adhikari vehemently deny any ownership or knowledge of such an agreement.&nbsp; “We don’t know how they got the stamp, this is nonsense,” Adhikari told Nepali Times. He added that PADT is working on crowd management at the evening prayers after several near stampedes. &nbsp; Adhikari says the Ganga Arati is not under the jurisdiction of PADT, but organised by a separate entity. He notes that the prayer ritual adopted more than a decade ago is not inherently a part of Nepali culture.&nbsp; Our investigation shows that on 15 June, 2023 former Minister of Tourism and Culture Sudan Kirati signed an agreement permitting the Kirat ethnic group to <a href="https://nepalitimes.com/here-now/life-after-death">bury their dead</a> within the sacred Shleshmantak forest until a permanent burial site was found in three months.&nbsp; Six months have passed but no alternative site has been designated. Nabin Manandhar of Kathmandu Metropolitan Office had no idea about the agreement Kirati signed. Rewati Raman Adhikari also had no idea about an agreement. PADT has already been wracked by a corruption scandal over missing gold used to make a new necklace for the main Pashupati deity. Thapa is facing charges related to corruption in that case which goes back to when K P Oli was Prime Minister in 2021. &nbsp;

Alisha Sijapati

Unholy developments at holy sites

Just two weeks into the new Maoist-led 5-party coalition government, Prime Minister Pushpa Kamal Dahal has found a new best friend in Home Minister Rabi Lamichhane.
So desperate is Dahal to stay on as PM that he has sacrificed his bishop, comrade-at-arms Krishna Bahadur Mahara who is Maoist vice-chair and has given new meaning to his party designation.&nbsp;
Lamichhane is out to show that he has the pluck to go after high profile politicians, and has convinced Dahal that he had to do what he had to do to restore flagging public support.
It was convenient that Lamichhane could use an inquiry commission report implicating Mahara in 60kg of gold being smuggled in from Hong Kong as motorcycle brakes last year, and another 9kg gold a Chinese passenger was caught hiding in a consignment of e-cigarettes in 2022.&nbsp;
Read also: <a href="https://nepalitimes.com/editorial/skeletons-in-the-cabinet-k5x6py1v">Skeletons in the Cabinet</a>, Editorial
Lamichhane met the Prime Minister last Friday, and the two seem to have agreed that Mahara was expendable. Mahara got wind of this, and was caught while trying to escape to India via the Kapilvastu border. He is currently being detained in a hospital in Kathmandu.
Lamichhane is said to be targeting senior opposition Nepali Congress (NC) leaders next, and Mahara’s arrest was necessary to prove that he is not sparing party figures from his own coalition. His predecessor, Narayan Kaji Shrestha who is now Foreign Minister, had selectively gone after UML and NC leaders.&nbsp;
Dahal’s decision to sacrifice Mahara may have been easier because the former House speaker was already a tainted figure, with ties to telecom kickbacks and accusations of syphoning off money meant for ex-guerrillas. &nbsp;There was no probe into either allegation.&nbsp;
In 2010, an audio recording was leaked to the press of him demanding Rs500 million from a Chinese national to buy lawmakers to keep the Maoist coalition intact. Despite this, he became House Speaker in 2017.&nbsp;
Mahara was finally arrested in 2019 after a female staffer of the Parliament secretariat accused him of rape. He resigned as Speaker, but was eventually acquitted by the courts.
Read also: <a href="https://nepalitimes.com/editorial/what-difference-does-it-make">What difference does it make?</a>, Editorial&nbsp;
Former Maoist leader Muma Ram Khanal says this time, too, the case against Mahara may fizzle out. “It could just be another stunt that the Prime Minister is pulling with his Home Minister,” he told our sister publication, Himalkhabar.
As of press time Thursday, it was not clear whether Mahara’s four-day arrest would be extended. The evidence against Mahara that he pressured customs officials to release smuggled gold, and made multiple phone calls to the accused may not be deemed enough by the courts to convict him.&nbsp;
Seeing that Lamichhane may be coming after its own Arzu Rana Deuba and Binod Chaudhary next for their involvement in the fake refugee scandal and the Bansbari land grab, the NC is trying to snare the Home Minister in a case involving the misappropriation of funds from cooperatives to fund a media company Lamichhane co-founded with businessman G B Rai.
Suspiciously, one of Lamichhane’s first acts as Home Minister was to transfer CIB chief Kiran Bajracharya, who was heading the investigation of the cooperatives fraud case. Bajracharya was blamed for her unwillingness to investigate Mahara and others in gold smuggling.
Read also: <a href="https://nepalitimes.com/news/catapulting-to-singha-darbar">Catapulting to Singha Darbar</a>, Kunda Dixit
The NC has threatened to obstruct Parliament unless Lamichhane is investigated in the cooperatives case even though Prime Minister Dahal this week staunchly defended his Home Minister.&nbsp;
If all this was an attempt by the RSP to show that it is serious about curbing corruption, the public does not seem all that convinced. Many see the investigations as vendetta and political drama. The web of corruption is so tangled that every politician has something on another politician, and they all tend to cancel each other out.&nbsp;
Mahara was questioned about his alleged connection with the smuggling racket last year, and his son Rahul has been in police custody since August for his involvement in the case. Other political leaders including incumbent Finance Minister Barsaman Pun, former speaker Onsari Gharti Magar, and Dipesh Pun, son of former vice-president Nanda Bahadur Pun, have all also been accused of being a part of the gold trafficking ring.&nbsp;
Former prime ministers, ministers, and political leaders have been questioned, even detained, for their involvement in cases ranging from the Baluwatar real estate scam to the fake refugee scandal, but they have either been spared completely, released on bail, or the investigations have hit a dead end.&nbsp;
All the leadership seems to care about is to push probes into corruption cases when they are in power and rivals are in the opposition. In that respect, though, Mahara’s detention is an outlier — he has been taken in while his own party boss is Prime Minister.
Read also: <a href="https://nepalitimes.com/editorial/nepal-gets-gold-medal-for-corruption">Nepal gets Gold Medal for corruption</a>, Editorial
Shristi Karki

Nepal’s corruption carousel

In what seems to be a replay of an initiative 13 years ago by the shadowy Asia Pacific Cooperation and Exchange Foundation (APECF) to invest billions in the ‘development’ of <a href="https://nepalitimes.com/here-now/u-thant-kenzo-tange-and-the-buddhas-birthplace">Lumbini</a>, a new scandal has erupted about a lease of the nearby Buddhist shrine of Ramgram to a private entity. The Hong Kong-based <a href="http://www.apecf.org/en/work_projects/lumbini/index.html">APECF</a> purportedly signed an MoU with <a href="http://www.apecf.org/en/work_projects/lumbini/lumbini05.html">a United Nations office in Beijing</a> in June 2011 for the Lumbini Buddist Cultural Special Zone project with the aim of turning it into an international tourist destination having the world’s tallest Buddha statue. The new Ramgram proposal, meanwhile, was pushed by a shady former lawmaker named Lharkyal Lama, who heads the Lumbini Development Trust (LDT) and involved leasing 82 hectares of the sacred site for 99 years to the Singapore-based Moksha Foundation to build hotels and other structures. Interestingly, both projects involve Prime Minister Pushpa Kamal Dahal. The APECF was chaired by Dahal after he resigned as prime minister in 2009 during his first tenure. And the local counterpart of the Moksha Foundation is Promised Land, owned by the son of Dahal’s landlord in Kathmandu. The vice-chair of APECF Xiao Wunan <a href="http://www.apecf.org/en/foundationnews/20230630.html">visited Kathmandu in June</a> last year and met Dahal after which Dahal is said to have offered to support the foundation’s ‘core focus’ of Buddhist culture. The APECF project has been in limbo ever since then UN Secretary General <a href="https://archive.nepalitimes.com/news.php?id=19159">Ban Ki-Moon cancelled a visit to Lumbini</a> to endorse it after geopolitical pressure and the <a href="https://archive.nepalitimes.com/news.php?id=19096">controversy</a> in Nepal, <a href="https://archive.nepalitimes.com/news.php?id=19096">reported by this paper at the time.</a> Then, last week the LDT cancelled the MoU with Moksha Foundation and Promised Land after a directive from the Parliament’s Public Accounts Committee, which also ordered the Commission on the Investigation of Abuse of Authority (CIAA) to probe the deal. Prime Minister Dahal appointed Lharkyal Lama to head LDT in August 2023 despite knowledge about his nefarious past. Proximity to powerful leaders across the political spectrum has allowed Lama to keep being reincarnated despite allegations ranging from <a href="https://nepalitimes.com/editorial/nepal-gets-gold-medal-for-corruption">corruption</a> to sedition.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240221080248_5bc713d63c962d3ad00716a8c4da9eb7e78758d8a96c4a8b20be6af8c0678733.jpg" data-media-id="editor_8" data-image-id="20240221080248_5bc713d63c962d3ad00716a8c4da9eb7e78758d8a96c4a8b20be6af8c0678733" data-rendition-name="original" width="800" height="533" loading="lazy" alt="Lharkyal Lama NT"><figcaption>Lumbini Development Trust vice chair Lharkyal Lama.</figcaption></figure>  “With Gautam Buddha and Maya Devi as my witnesses, I will promise to never denigrate this holy place and to uphold the dignity of Lumbini,” Lama declared after his appointment last year. The story about Ramgram, 35km east of Lumbini, was broken in January by a Kantipur investigation which revealed that Promised Land was owned by Nikesh Adhikari, the son of Sharada Adhikari, Prime Minister Dahal’s landlord. Tourism and Culture Minister Sudan Kirati, who chaired LDT before Lama’s appointment, had previously also attempted to hand over the same land to Moksha Foundation and Promised Land but the deal was blocked by other branches of government, including the Department of Archaeology. Lama tried to bulldoze the agreement despite the objections. One out of the eight relics of Gautam Buddha that were distributed among his disciples was sent to the ancient kingdom of Koliya, where present-day Ramgram stupa is located. Experts have long pushed to <a href="https://nepalitimes.com/here-now/buddha-s-birthday-in-his-birthplace">archaeologically substantiate</a> the site’s history and include it in the World Heritage list. “What they tried to do with <a href="https://archive.nepalitimes.com/news.php?id=7358">Ramgram</a> is heartbreaking,” says Bhairawa-based cultural expert Geetu Giri. “It seems that the Prime Minister has been using Lama and the Lumbini Development Trust as proxies to monetise Lumbini in collusion with cronies.” Lharkyal Lama was hugely controversial even before being appointed to the LDT. Media investigations showed that his citizenship paper states that he was born in Helambu on 28 November 1964, and came to Kathmandu to study Buddhism. Papers made public by Lama in 2016 state that he obtained a Khenpo degree from the Ngagyur Nyingma Institute in Karnataka in 2000, but the institute’s website shows only one person graduated that year and it was not Lharkyal Lama. During the newly post-Panchayat era, Lama was close to powerful Nepali Congress (NC) leader Khum Bahadur Khadka, who himself would go on to be convicted of several counts of corruption in August 2012. In 2001, during his second tenure as Prime Minister, the NC’s Sher Bahadur Deuba appointed Lama chair of the Monastery Management and Development Committee.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240221080248_7ec49626c0b71a8f2df46c4ab1ac32b6fdf288260e07b22fdff0e5c0de293768.png" data-media-id="editor_11" data-image-id="20240221080248_7ec49626c0b71a8f2df46c4ab1ac32b6fdf288260e07b22fdff0e5c0de293768" data-rendition-name="original" width="568" height="426" loading="lazy" alt="Ramgram stupa NT"><figcaption>Ramgram stupa. Photo: LUMBINI DEVELOPMENT TRUST</figcaption></figure>  Lama then pivoted to the UML in 2007, and was close to Ishwar Pokharel and Amrit Bohara who lined up a proportional representation seat for him in the 2008 Constituent Assembly election. He was appointed state minister for finance by Prime Minister Jhalanath Khanal in 2011 but had to resign just two weeks into office after it was revealed that he possessed two Nepali citizenships, an Indian passport, and a Tibetan refugee ID card. A Home Ministry investigation further revealed his close ties to an emissary of the Dalai Lama and leader of the Free Tibet campaign. The investigation was never completed due to ‘non-cooperation by government agencies’. Lama then left the UML and joined the Maoist party in 2014 and was appointed lawmaker in 2015 despite the Election Commission's objections. Maoist chair Pushpa Kamal Dahal wrote four letters to the Commission on Lama’s behalf. Even Maoist leaders objected to his appointment, but Dahal went ahead with it. Lama was once again investigated by the CIAA in 2016 during his second stint in Parliament after illegal wealth and bullets were discovered inside his bank locker. He spent nine days in custody and was released on a mere Rs60,000 bail. The CIAA filed a case in the Special Court, but Lama was acquitted. Lama’s appointment to the LDT was also heavily criticised from within the Maoist party, but Dahal overruled objections. The Promised Land deal that Lama pushed therefore could have the backing of the highest office in the land. Basanta Bidari, who has worked as an archaeologist at the LDT for 28 years, says that Lama’s tenure has been disappointing but he is not surprised. He says, “There is no need for me to comment on appointments by Dahal and Kirati. We never had any expectations from Lama.” The LDT was established in 1985 to develop and promote the birthplace of the Buddha, and was under the tutelage of the royal palace. But even then there were allegations of misappropriation of funds and lack of progress in developing the nativity site. Four decades on and with multiple changes in government, political interference in Lumbini’s development continues. Meanwhile, the contrast between the heritage site and the surrounding <a href="https://nepalitimes.com/here-now/telling-the-story-of-buddha-s-lumbini">Greater Lumbini region</a> is starker than ever. Says Bhairawa-based observer Ram Bikas Chaudhary: “There are two Lumbinis here, separated by a wall. Inside it is beautiful, prosperous, and peaceful, while the outside is ugly, poor and chaotic.”

Lharkyal Lama’s Lumbini, Inc

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>

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

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

It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

30 years after Baby Arun

Nepal has shut down dozens of social media platforms in a move that is widely seen as an effort to tax the revenue they generate in the country, and to control content critical of government. The sites were blocked as of midnight on Thursday, 4 September and affects all Meta products including WhatsApp and Messenger, Threads, and others. Although YouTube, Google and X are also on the government’s list, they were still working as of Friday midday.&nbsp; The government says it took the action after repeated warnings to the platforms to open offices in Nepal, a Cabinet decision last month setting a deadline, as well as a 17 August Supreme Court ruling also requiring them to register and pay requisite taxes. However, the Bill cited in the ban, ‘The Operation, Use, and Regulation of Social Media in Nepal’ has not yet been passed by Parliament. Some social media platforms which were already paying taxes in Nepal even though they are not officially registered, have also been blocked. The move is the latest in <a href="https://nepalitimes.com/news/big-beautiful-bills" target="_blank">a slew of draft legislations</a> designed to undermine Nepal’s open society. A Bill amending the Print and Publications Act would allow district bureaucrats to shut down media. Another draft Bill would allow political appointees to head a new Media Council with the power to revoke the licenses of journalists.&nbsp; A counter-intelligence Bill would let just about anyone in government to arbitrarily tap phones, read emails and trail citizens. On Wednesday the government announced new immigration requirements that would allow it to track the movement of all foreigners in the country. Yet another draft Bill has been set to Parliament to dissolve the <a href="https://archive.nepalitimes.com/news.php?id=10675" target="_blank">Social Welfare Council (SWC)</a> and move registration and monitoring of non-governmental organisations, nonprofits and charities to the Ministry of Social Welfare. Seen in this light, the blockage of social media platforms this week is seen as the latest government attempt to constrict freedom of press. Nepal is one of the few remaining open societies in Asia, and now appears to be drifting towards authoritarianism. The government’s sudden shutdown of social media has been greeted with howls of protest on platforms that still remain open, like Viber and TikTok, as well as in Nepal’s mainstream press. Even senior members of the ruling UML-NC coalition have sharply criticised the move, asking if the government is trying to “turn Nepal into North Korea”.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656.jpg" data-media-id="editor_2" data-image-id="2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656" data-rendition-name="original" width="4280" height="5187" loading="lazy" alt="social media ban in Nepal"> </figure>  The Regional Director of the New York-based Committee to Protect Journalists (CPJ) Beh Lih Yi said in a statement: ‘Nepal’s sweeping ban on social media sets a dangerous precedent for press freedom. Blocking online news platforms vital to journalists will undermine reporting and the public’s right to information. The government must immediately rescind this order and restore access to social media platforms, which are essential tools for exercising press freedom.’ Besides undermining press freedom, blocking social media platforms will also hurt commerce and the economy since so many small and medium business trade through Instagram, Facebook and other platforms. Nepal’s vibrant social media has also been a boost or citizens to assert identity, build solidarity against injustice and play an adversarial role when the mainstream media does not do it. Social media platforms have also become the tenuous link for Nepali families scattered across the world to keep in touch with each other — its importance growing with the increasing size of the diaspora. The government wants social media platforms to register, pay taxes and remove posts on their sites that ‘undermine the national interest and Nepal’s territorial integrity, disturb social and religious harmony’.&nbsp; In response, rights activists have said while there is need for the government to regulate extreme content and hate speech, officials appear to be more intent on clamping down on free speech and trying to force platforms to share the revenue. On Friday, the government had allowed WhatsApp back online, but there were reports that it had instructed the Nepal Telecommunication Authority (NTA) to instruct mobile and internet service providers to block by Friday night all platforms, including Facebook, Instagram, Messenger, WhatsApp, X (Twitter), YouTube, LinkedIn, Reddit, Threads, Snapchat, Pinterest, Signal, Clubhouse, Rumble.&nbsp; Platforms that have registered and are allowed include TikTok, Viber, Nimbuzz, Popo Live, WeTalk, Global Diary and the Nepali portal Hamro Patro. TikTok was banned last year for ‘disturbing social harmony’ and it was lifted after the platform registered its office in Nepal. But even while it was banned, many users simply switched to VPN. Telegram was also banned for ‘financial crimes’ and it has since also been allowed back. NTA officials confirmed that some Asia-Pacific regional offices of platforms, including Meta had been in touch overnight inquiring about the registration process.&nbsp; Nepal is not alone in regulating social media. China bans most Western platforms, Russia and Turkey regulate their and require platforms to locate their data servers in the country. Gulf countries allow social media but keep a tight control on dissent.&nbsp; Experts have said even the government will not dare close down YouTube since so many Nepali individuals and companies make money with posts on that platform, and closing it would also impact on Google and Gmail. Facebook had also just launched a monetisation scheme for videos and reels, and Nepalis uploading content would lose revenue.&nbsp; Blocking the platforms has already hit content creators, influencers and cut small businesses from reaching customers. A survey of social media use in Nepal by Sharecast Initiative showed that 94% of those with smart phones used YouTube, followed by Facebook (92%) while TikTok was in the 50-60% range. X and Instagram were in the single digits. A YouTube ban will also hurt the mainstream media since up to 20% of the revenue of Nepal’s main tv channels came through YouTube. Some 11.1 million Nepalis watch YouTube content every day, the survey showed. ‘For global giants like Meta or Google, Nepal is a small market, and they may not even flinch — but for millions of Nepalis, these platforms are central to daily life, livelihoods, and connections across the world,’ wrote AI consultant Naresh Newar in a LinkedIn post. Some experts said the government’s sweeping ban on social media networks was untenable and the government would be forced to rollback sooner or later. Said editor Shiva Gaunle: “The platforms had given citizens a voice and broken the monopoly of the government, legislators, the courts and journalists over public opinion. This is an effort to reassert that monopoly, but Nepal can never be turned into a North Korea.”

Protest grows against Nepal’s social media ban

<a href="https://www.youtube.com/watch?v=x2fZXyjsE28" target="_blank">Yog Narendra Malla</a> became king at age 18, and ruled Patan from 1684-1705 — his reign marked by a cultural and architectural renaissance of the city state. He put up a statue of himself in the palace square with a little bronze bird sitting on the guardian serpent above his head. It is said he told his subjects that he would look after their welfare till the day the bird flew off. During<a href="https://nepalitimes.com/here-now/lessons-not-learned-from-2015-o2etq6zu"> the 2015 earthquake</a>, the pedestal collapsed and the statue was damaged. The bird was lost, only to be located in a pile of debris and reinstated when the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/piece-by-piece-patan-darbar-square-reconstruction,3782" target="_blank">statue was consecrated</a> two years later. <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/x2fZXyjsE28?si=jYfIb4p6zCLXYQ1T" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div> History remembers Yog Narendra Malla as a wise king, but like most<a href="https://nepalitimes.com/here-now/preserving-king-birendra-s-family-home"> royalty of the day</a>, he had a weakness for women. He is supposed to have consorted with 30 queens and numerous concubines. At least 33 of them self-immolated themselves on the king's funeral pyre when he died, adhering to the prevailing <a href="https://archive.nepalitimes.com/article/review/Jhola,947">practice of sati</a>. When Yog Narendra Malla’s favourite queen found out that he was carrying on with yet another woman, she got the local community of the Kwelachhi neighbourhood to stage a shadow sex play to quite literally expose his unfaithfulness. Actors enacted the explicit exploits of the king and his mistress, a bright butter lamp projecting the moving shadows of their lovemaking on a thin white drape to entertain those gathered in the square below. The queen made sure that the show was designed to face the home of the king’s paramour to shame them both. She also paid for a group to chant a bhajan with lyrics that ridiculed the king’s extramarital affair. The Jhyalcha Guthi community trust that the queen set up three-and-half century ago is still active to this day, and performs the annual shadow play in the same building in Kwelachhi the day before <a href="https://nepalitimes.com/banner/the-legend-behind-the-myth-of-indra-jatra">Indra Jatra </a>every year. This year’s show is on Friday evening, 5 September. The opening lines of the chants that accompany the play are the same words approved by the queen all those years ago: “Raja Yog Narendra ya aparadh…” (King Yog Narendra’s crime…) The community leader of the Kwelachhi neighbourhood, 62-year-old Baburaja Awale, explains the importance of the event: “This Jhyalcha is our<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/saving-the-intangible,3303"> intangible heritage</a> and oral history. We do not have a written format, it has been passed down from generation to generation. Every word of the bhajan is the story of King Yog Narendra Malla.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250904070952_249e85b32cbd99bb8515151557e0ec1a65d44a34ef1aacabaaeb469622d12664.jpg" data-media-id="editor_8" data-image-id="20250904070952_249e85b32cbd99bb8515151557e0ec1a65d44a34ef1aacabaaeb469622d12664" data-rendition-name="original" width="1750" height="1167" loading="lazy" alt="Sex and the city of Patan"> <figcaption>The statue of Yog Narendra Malla being reinstated after it toppled in the 2015 earthquake. Photo: GOPEN RAI/ NEPALI TIMES ARCHIVE</figcaption> </figure>  Jhyalcha Pyankha, as the ceremony is called, starts with a puja for the Bhimsen — the god of wealth and prosperity, a popular <a href="https://nepalitimes.com/here-now/the-homecoming-of-nepal-s-gods">deity in Patan</a> who has a temple dedicated just to him in the palace square. This is immediately followed by a bhajan of Bhairab performed with <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Buzz-house,670">traditional Newa musical instruments</a>. Community members serve snacks consisting of samay baji beaten rice, water buffalo chunks, soybean, green veggies, lentils, ginger, garlic and aila liquor. “In the first act of the shadow play, the man initiates the lovemaking, and in the third it is the woman,” says Laxmi Lal Awale, also a member of the trust that organises the show. The shadow action is all uncensored, but interspersed with <a href="https://nepalitimes.com/review/between-the-sacred-and-everyday">scenes of everyday life</a>: the woman is spinning a thread, the king is going about his royal chores, and the two sit down to share sanacha fermented pickle that is popular this time of year. <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/qZ3twuG1wNQ?si=yRfkoC3A-X9cIl8r" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div> “Back then, there was no tv, films or YouTube, and yet we managed to stage the shadow play using our own resourcefulness,” says Baburaja Awale. “It is important to continue the tradition.” The challenge now is to ensure that the<a href="https://nepalitimes.com/opinion/the-reign-of-the-god-of-rain"> younger generation takes over</a>, learning the lyrics of the ancient bhajan. The dafa khala group that performs all over Patan during festivals and religious events is now training teenagers to play the musical instruments and act in the shadow play. The Jhyalcha was staged even after the 2015 earthquake when the falcha where the bhajan is performed collapsed and they made-do in a tin shed. The structure was later rebuilt with a grant from the group, Photo Circle. Lalitpur Metropolitan City sets aside a budget of Rs50,000 to organise the Jhyalcha Pyankha every year, but this is not enough and is supplemented by individual donations. The performers including musicians and actors are all volunteers, and take part in it because it is their community duty. The erotic shadow play was way ahead of its time, not just in its graphic content but the use of contemporary local technology as well as improvisation and pure imagination. Says Laxmi Lal: “Whatever its origin in the legend of King Yog Narendra Malla and his queen, Jhyalcha also served as a medium of <a href="https://nepalitimes.com/here-now/lets-talk-about-it">sex education</a>. In the past, women were discouraged from watching the shadow play, but today everyone is welcome, we all watch it together.” Jhyalcha Pyankha Kwelachhi, Chyasal, Patan 7PM onwards Friday, 5 September

Sex and the city of Patan

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;

corruption