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

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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

<figure><img width="2090" height="1386" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161120/636d178d9c7e80680e0ac773jpeg.jpg" alt=""/><figcaption></figcaption></figure>A global investigation by the International Consortium of Investigative Journalists (ICIJ) has revealed that well known political and business figures are using tax havens for money laundering. Among the names in the latest leaks is that of Nepal’s richest man, as well as other prominent businessmen in the country.The names are contained in the ‘Pandora Papers’ leaks, a sequel to the ‘<a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/new-autocrats-global-investigative-journalism-conference-South-Africa,4058">Panama Papers</a>’ that had already exposed thousands of people around the world, as well as revealed their secret email correspondence with banks and investment partners to hide their wealth.The Washington DC-based ICIJ provided to the Centre for Investigative Journalism Nepal (CIJ) documents pertaining to Nepal that involve the Chaudhary Group, Golchha Organisation and other notable Nepalis with political connections. <img width="640" height="646" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d17909c7e80680e0ac774jpeg.jpg" alt="">The ICIJ and 600 collaborating journalists in 117 countries pored through a trove of 11.5 million leaked documents in the largest media collaboration ever to reveal the findings. The ‘data tsunami’ in the Pandora Papers reveal shady offshore dealings of people like the leaders of Ukraine and the Czech Republic, the King of Jordan, former British Prime Minister Tony Blair and people from Imran Khan’s inner circle.From the leaked documents ICIJ provided CIJ, the secret correspondence and other seem to show that Nepal’s top businessmen violated the laws of the land by having investments abroad, buying and selling shares and setting up shell companies in tax havens like the British Virgin Islands, Cyprus, Mauritius, Singapore and other financial centres.Nepali investigative journalists Krishna Acharya and Ramu Sapkota led a team that analysed the Pandora Papers and found that the Nepali companies had front entities registered in the British Virgin Islands (BVI) in the names of family members and associates through which they moved money to a series of shell companies to launder money without detection. <img width="640" height="850" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d17949c7e80680e0ac775jpeg.jpg" alt="">Prominent among the names in the leaked papers is that of Binod Chaudhary, Nepal’s only known dollar billionaire who was ranked the 2,141st richest man in the world by Forbes in 2018. The Pandora Papers reveal that he has companies in the BVI in the names of his wife and three sons, Nirvana, Varun, and Rahul.The leaks provided to CIJ show that the Chaudhary family has registered the companies Cinnovation Incorporated, CG Hotels and Resorts Limited, Sensei Capital Partners Inc. in BVI, and CG Hospitality Holdings Global Pte Ltd in Singapore. Officials at Nepal Rastra Bank told CIJ that Chaudhary did not have permission to hold these investments abroad.  Chaudhary has argued that his foreign investments are all legitimate, but he has admitted to using loopholes in Nepal’s Income Tax Act allowing citizens living abroad for more than 183 days a year to invest around the world.Chaudhary says in his biography published in 2013: ‘I took advantage of this (loophole) and decided to stay abroad for more than 183 days a year and become a temporary citizen of my own country. Today, my two sons Rahul and Varun are doing business abroad as non-resident Nepalis.'In a response to CIJ's query, Binod Chaudhary's son Rahul said his group had not violated any Nepali or international laws, including those governing foreign investment. "CG and its group of companies are in partnership with some of the most respected, reputed and leading multinationals globally, information of which is readily available in the public domain," he added. "We do not wish to comment on allegations against our business partners."When CIJ showed Nepal’s former Finance Secretary Rameshore Khanal the leaked documents, he said Chaudhary had clearly misused the system because the law does not allow a Nepali citizen to take money out of the country as Chaudhary appears to have done. He and two of his relatives named in the leaks are Nepalis citizensThe Pandora Papers has minute details of company correspondence, share and money transfers and other transactions between Chaudhary family members and partners. Some of the names mentioned are Pakistani, Singaporean, Sri Lankan and Bangaldeshi. One of those involved in Cinnovation in Chaudhary’s company registered in BVI is US national of Bangladeshi descent, Abdul Awal Mintoo, who was investigated in 2018 by the Anti-corruption Commission in Dhaka over money laundering and loan extortion allegations.In releasing the Pandora Papers leaks, ICIJ says that there is a vast underworld of global money transfers that work through layers and layers of offshore shell companies that are difficult to trace.“There is a shadow economy, a shadow world out there that we are not aware of that is enriching people who are already rich. Shell companies are essentially the getaway vehicles for crime in the offshore world,” ICIJ director Gerard Ryle told Australia’s ABC tv in an interview ahead of the release of the Pandora Papers. He added: “The offshore world exacerbates poverty. It leads to inequality.” Although some of the businessmen named in the papers have been nominated to Nepal's Parliament by parties, there has not been any direct involvement of politicians in money laundering through offshore companies. <img width="640" height="916" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d17969c7e80680e0ac776jpeg.jpg" alt="">But the Centre for Investigative Journalism Nepal says politicians seem to be colluding with their business partners because there has been no investigation after <a href="https://www.nepalitimes.com/latest/nepalis-in-tax-havens-swiss-banks-money-laundering/">its 2019 NepalLeaks</a> revelation of the <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/new-autocrats-global-investigative-journalism-conference-South-Africa,4058">Panama Papers</a> that brought out names of dozens of Nepalis with unlawful offshore companies.  ‘The silence of the regulatory bodies appears to be encouraging the Nepalis’ investment in tax haven countries. Pandora Papers is an outcome of that surprising silence,’ CIJ says. The other prominent Nepali business house implicated in the Pandora Papers is the Golchha Organisation. Leaked documents show it also has offshore companies in the British Virgin Islands (BVI) under the names of its patriarch Lokmanya Golchha, his brothers late Diwakar Golchha, late Mahendra Kumar Golchha, cousin Chandra Kumar Golchha and Diwakar’s son Hitesh Golchha. Leaked documents examined by CIJ show that a Geneva-based law firm named Overseas Management opened an account at Barclays Bank in Switzerland in 2008 on behalf of Flatwood Limited operated by Golchha family members. The paper trail also shows that  Diwakar Golchha bought shares of Eastern Sugar Mills Limited in Nepal in 2008 through Flatwood Limited. Golchha Organisation is one of the pioneer industrial houses in Nepal and its founders established the Biratnagar Jute Mill nearly 70 years ago. In fact, the 2019 NepalLeaks mentioned that Golchha Organisation was the first Nepali company to bring in foreign investment from the British Virgin Islands through Flatwood to operate companies in Nepal.  Earlier CIJ investigations in 2017 showed that in a questionable deal, Golchha’s Eastern Sugar Mills was allowed by the Tax Settlement Commission to get away with paying only Rs400,000 when it owed the treasury Rs52 million in back taxes. Two members of the Commission and the director of the Inland Revenue Department are still facing corruption charges in the Special Court for granting allegedly illegal tax breaks to the Golchhas.  Political links Like Binod Chaudhary, Diwakar Golchha was also nominated by the Nepali Congress to the Constituent Assembly-Parliament in 2008, showing the political links of many of the businessmen named in the ICIJ documents.  The other person with close links to Maoist Centre leaders is Ajeya Sumargi Parajuli, who was exposed in the CIJ NepalLeaks for allegedly transferring money from Nepal to tax havens the suspected ill-gotten wealth of politicians. The papers also showed that Sumargi’s Zhodar Investments in BVI transferred $48,372,222 to his companies in Nepal in 2010. Zhodar’s co-owner is Cyprus national Sotirios Pittas, a lawyer and Sumargi business partner, the leaked documents show.  According to Pandora Papers, Sumargi also invested in Worldwide Incredible Limited in the BVI in 2011, and several other companies based in the tax haven. Some of the monies from BVI have been transferred indirectly to Sumargi’s companies in Nepal, including Hetauda Lime Industry Pvt Ltd, Everest Mineral Products Pvt Ltd, Muktishree Pvt Ltd, according to the Pandora Papers.  CIJ also found leaked documents that show Sumargi’s other company, The New Digitek getting permission to hold 50% share in Nepali mobile companies, including Nepal Telecom Private Limited.  Among the Pandora Papers is also a slew of email correspondence from BVI lawyers at Trident Trust Limited who warned that action would be taken if  Sumargi did not provide mandatory details for Zhodar Investments.  While poring through the Pandora Papers, CIJ’s investigative journalists Krishna Acharya and Ramu Sapkota found that Sumargi’s business partner in Nepal, Arjun Prasad Sharma, also registered a company in BVI in 2019.  In a convoluted money trail that involved several other shell companies, Sharma and Sumargi are seen to have worked in 2019 with the same Cypriot investment company, Sotioris Pittas &amp; Co LLC.  Other names The other prominent people named in the Pandora Papers leaks is Radhe Shyam Saraf and his family, who own the Taragaon Regency Hotel and Yak &amp; Yeti Hotel in Kathmandu. The documents that CIJ reviewed appear to show that the family has channelled money through companies in the British Virgin Islands to invest in Nepal.  CIJ also found documents in the leaked papers showing that the Saraf family are involved in companies in Belize, Lichtenstein and Mauritius and there appear to be questions regarding their investment in Hyatt International. Saraf had already been embroiled in controversy in Nepal over the Taragaon property and has been investigated by the Office of the Auditor General, the anti-corruption agency and the Ministry of Tourism. The other Nepali businessmen mentioned in the Pandora Papers who have invested in suspected shell companies offshore tax havens include Rajendra Shakya, Purushottam Poudyal, Sudhir Mittal, and others.  Detailed report on the Pandora Papers in Nepali and English of the Centre for Investigative Journalism Nepal (CIJ): <a href="https://cijnepal.org.np/">https://cijnepal.org.np</a>

Nepal’s richest man in the Pandora Papers

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131144/636a4fd29c7e80680e04fd2bjpeg.jpg" alt="" width="2922" height="1834"/>Nepal will be evaluated for international money laundering activities by the APG (Asia Pacific Group) of the Financial Action Task Force (FATF) during 2019, and may be blacklisted if the government does not adequately crack down on illegal cross-border money transfers.If Nepal is not able to come up with a workable mechanism to identify criminal activities and bring offenders, including prominent businesspersons and politicians, under the purview of the law by the end of 2020 it faces the danger of being blacklisted by the task force.The FATF was established in 1999 to track down and stop money laundering and funding of terrorist activities around the world. Nepal is a member of its associate organisation APG, which investigates regional member countries. With an investigation due, Nepal had hastily passed the Money Laundering Prevention Act in 2008, but took 2 years to implement it.An APG working committee evaluated Nepal, and concluded that its attempts to control money laundering were not effective enough. On February 2010, it put Nepal on an international monitoring list. Nepal then established a Money Laundering Investigation Department. With the help of the IMF and World Bank, the government created legal structures and adopted policies to prevent money laundering. After it took these steps, it was removed from the international monitoring list, which meant that it was not prohibited from doing financial transactions with other countries or international organisations.Though Nepal improved its legal stance on money laundering after the first international investigation, it does not seem to have made much progress since then in actually preventing tax evasion and money laundering.Read also: <a href="https://www.nepalitimes.com/opinion/so-youd-like-to-do-business-in-nepal/" target="_blank" rel="noopener">So you’d like to do business in Nepal?</a>, Ritu Pradhan MallaIn the past, the APG had evaluated Nepal on the basis of its legal safeguards and policies. However, in future it will be looking for concrete action to see if Nepal implemented the 40 suggestions and 11 results that it made in 2010. “The next evaluation will be focused less on laws and more on implementation and results,” admits Binod Lamichhane, spokesperson of the Money Laundering Investigation Department. “So if our implementation remains as weak as it is, it could create problems for us.”Experts say the government will find it very difficult to implement its own laws because so many of those involved are powerful businessmen enjoying political protection. “If the Money Laundering Prevention Act is implemented, then politicians and officials will have a hard time showing the source of their earnings. Which is why implementaction of the Act never became a priority for Nepal. Clearly, it was created only as a showpiece to assuage foreigners,” a former director general of the department confided.Indeed, although everyone agrees that corruption and tax evasion are rampant in Nepal, there is no record of prominent persons being investigated for it. However, since the APG will be investigating on its own next year, the department has been forced to conduct its own secret probes. Director General Rup Narayan Bhattarai says he cannot speak about the investigations at the moment but according to sources, well known Nepalis, including a businessman who is expanding outside Nepal, another tycoon who created an international business network after the 2006 movement, a prominent trader accused of gold smuggling and an industrialist who suddenly switched to tourism, are under investigation.However, the going is not expected to be easy, because the Money Laundering Investigation Department lacks coordination with other powerful agencies, which is international practice and considered essential to investigate money laundering. Though the law states that Nepal Rastra Bank should coordinate with other agencies and provide information to the department about suspicious financial transactions, the implementation of this law is weak.“Since our mechanism for identifying illegal wealth is weak, we are not able to figure out if the money, property, shares, gold, etc, deposited in banks are legal or not,” says an official of the bank. “So at the moment we are unable to effectively pass on useful information.”Currently, FATF has blacklisted Iran and North Korea, while 12 countries, including Sri Lanka, Pakistan, Cambodia, Ethiopia, and Syria, are currently on its international monitoring list. Nepal risks joining these countries if the APG evaluation does not meet international criteria for transparency.

Nepal risks being blacklisted on money laundering

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

Nepalis in tax havens, Swiss banks, money laundering

Robert Redford was an A-list megastar who had dominated Hollywood throughout the 1970s, generally considered the high water mark of American cinema.&nbsp; In those days Nepal was a fashionably remote destination, so it was not unusual for us to be looking after celebrity visitors. But Robert Redford was huge by any standards.&nbsp; “Call me Bob,” was the first thing he said to me, with that wonderful embracing smile that had lit up screens and quickened heartbeats around the world throughout the previous decade.&nbsp; We met over a cosy Mountain Travel dinner in Al Read’s brick and stucco house in Dhobighat. The floors were traditional terracotta tiles, the low beams darkly varnished and a cheerful fire warmed the October chill.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921110940_32dd66ba4b578a843bbbf6a74bca7d47f9ac7083c3bf50f8213ac3e5322974fd.jpg" data-media-id="editor_0" data-image-id="20250921110940_32dd66ba4b578a843bbbf6a74bca7d47f9ac7083c3bf50f8213ac3e5322974fd" data-rendition-name="original" width="1396" height="920" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford in 1982 at Meghauli airfield in Chitwan with young Kirsten Annapurna Read, the daughter of Al Read, managing director of Mountain Travel Nepal.</figcaption> </figure>  Our heroes often seem diminished in real life and Redford was shorter than expected, though taller than his friends and co-stars Paul Newman and Dustin Hoffman. But most striking was his pock-marked skin which must have challenged makeup artists over the years.&nbsp; I was disappointed he was not wearing his trademark cowboy boots, but Bob’s fame infused the room with his gentle politeness and low-key glamour. Next morning I picked him up from the Malla Hotel for some light sightseeing around the Valley. Under strict instruction from ‘his people’ that any fuss from fans was to be minimised, I was surprised to see him wearing a Sundance tee-shirt – just in case no one recognised him.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921040916_1674398340a9501127e9f8b6b775f41b35703253f772ee05c6ab064819cd0abb.jpg" data-media-id="editor_1" data-image-id="20250921040916_1674398340a9501127e9f8b6b775f41b35703253f772ee05c6ab064819cd0abb" data-rendition-name="original" width="840" height="1280" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford exploring the Kathmandu Valley in 1982. Photo: GALEN ROWELL </figcaption> </figure>  Unmolested, we walked the ancient streets of Bhaktapur, and Bob was duly entranced by the visual impact of Malla Newar’s enduring culture. Robert Redford’s main purpose in Nepal was to trek in the Khumbu with his friend Galen Rowell, an adventure photographer, conservationist and mountaineer who met a premature death in 2002 in a small plane crash in Bishop, California.&nbsp; There may have been some talk of a film about Everest, but nothing came of it. After the trek, Bob and Galen explored the grasslands and forests of Chitwan, staying with us at Tiger Tops Jungle Lodge to view wildlife from the back of a well-trained elephant.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921110948_7c2339d73cedfcc9e659169d1d1bc2239d3d9973f6c4b1a945bfeb74b9b74d19.jpg" data-media-id="editor_2" data-image-id="20250921110948_7c2339d73cedfcc9e659169d1d1bc2239d3d9973f6c4b1a945bfeb74b9b74d19" data-rendition-name="original" width="723" height="958" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford in Chitwan, with Tiger Tops Manager KK Gurung on 9 December 1982. Photo: GALEN ROWELL</figcaption> </figure>  Confiding that he was not much of a traveller, Bob told us Nepal was one of his first trips outside the USA. Bob preferred his homes in Malibu on the Pacific coast and the wide open spaces of Utah, which he named Sundance after his favourite role.&nbsp; SOARING GRANDEUR With his strong affinity for the outdoors, Redford’s horizons must have been significantly expanded by the soaring grandeur of Nepal's sublime mountains, untamed rivers, and tiger and rhino infested lowlands. Galen’s knowledge and enthusiasm for all things Himalayan made him the perfect person to introduce this prominent novice tourist to Nepal’s wild places. Framed photographs of Bob taken by Galen’s skilled camera still grace tourist lodges on the Everest trail, and I confess to having one hanging in our downstairs loo.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921070932_7bff2986293742e6e97c91c879f2549f2a99095f1f4a98c50e3b74c7f91f7b84.jpg" data-media-id="editor_3" data-image-id="20250921070932_7bff2986293742e6e97c91c879f2549f2a99095f1f4a98c50e3b74c7f91f7b84" data-rendition-name="original" width="1076" height="1624" loading="lazy" alt="Rovert Redford in Nepal"> <figcaption>Robert Redford in snowbound Namche Bazar in 1982.</figcaption> </figure>  His movie classics that defined our youth included the iconic Butch Cassidy and the Sundance Kid, The Sting, All The President’s Men and The Way We Were. With many Oscar nominations, his personal best was Ordinary People, his directing debut which swept the award board in 1980, shortly before his Nepal trip. But Robert Redford was more than just an all American action man actor and successful film director. He chose roles that highlighted his political and social outlook. He was admired as an active environmental campaigner, using his fame to fight for clean air and pure water, serving as a trustee of the Natural Resources Defence Council.&nbsp; Redford once said: “The danger of success is that it forces you into a mould. I prefer independence.” Choosing the wilds of Utah over the jungles of Hollywood, in 1981 he started the Sundance Institute to cultivate controversial and independent movie talent.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921040916_081aa6b2c1f9f82f3ea6a550c6887d9a991f2983a0a976456d627d711ae8a2e2.jpg" data-media-id="editor_4" data-image-id="20250921040916_081aa6b2c1f9f82f3ea6a550c6887d9a991f2983a0a976456d627d711ae8a2e2" data-rendition-name="original" width="2448" height="3264" loading="lazy" alt="Robert Redford in Nepal"> <figcaption>Robert Redford being shown around Bhaktapur by Lisa Choegyal on 21 Nov 1982. Photo: GALEN ROWELL</figcaption> </figure>  Festival screenings and workshops gave thousands of film people a chance of artistic freedom, nurturing a galaxy of filmmaker greats. At the end of his long life, Redford’s Sundance is widely recognised as having profoundly influenced American cinema.&nbsp; I like to think that Robert Redford’s rare overseas holiday amidst the stunning natural beauty of Nepal’s high mountains, Sherpa villages, living heritage and endangered animals might have opened his eyes and perhaps even sparked his lifelong concern for social and environmental issues.&nbsp;

The Sundance Kid in Nepal

This text has been updated. Ten days after being nominated caretaker, Prime Minister Sushila Karki has added four more members to her Council of Ministers: Magsaysay winner Mahabir Pun, tv anchor Jagadish Kharel, former Justice Anil Kumar Sinha and Samata Foundation chair Madan Pariyar. Karki was under pressure to complete her compact Cabinet quickly. But it appears that her attempt to find professionals with non-political background, integrity, a record of professionalism while making the selection inclusive has not been easy.&nbsp; Several candidates that Prime Minister Karki had approached is said to have refused to join the interim government. Some have political ambitions and were worried that they would not be able to campaign ahead of early elections called for 5 March 2026.&nbsp; Among those who opted out for various reasons include famed ophthalmologist Sanduk Ruit who said his main responsibility was running his Tilganga Institute of Ophthalmology. Also considered for the role of the Health Minister was cardiologist Bhagwan Koirala who is thought to have declined because of his association with Min Bahadur Gurung, owner of Bhat-Bhateni supermarket chain who had pledged Rs410 million to his Kathmandu Institute of Child Health. Twelve Bhat-Bhateni stores across the country were looted and set on fire during the GenZ protests on 9 September.&nbsp; The Prime Minister had finalised public health expert Sangita Kaushal Mishra for Health Minister, sending her name to the President's office along with the other Cabinet picks on Sunday evening. But the PM withdrew Mishra's name from the list on Monday after it emerged she was under a corruption investigation.&nbsp; Mahabir Pun of the National Innovation Center is the new Minister of Education, Science and Technology. Tv talk show host Jagadish Kharel who runs a popular current affairs program will lead the Ministry of Communication, while Anil Kumar Sinha seems set to be named Minister of Law, Justice and Parliamentary Affairs. Sinha and Mishra are from the Madhes. The new ministers will be sworn in on Monday. The names of the new ministers were finalised in consultation with the representatives of the GenZ protesters. Appointments of new ministers last week, especially of advocate Om Prakash Aryal as Home Minister, was rejected by Sudan Gurung of Hami Nepal, one of the GenZ campaigners, who even demanded resignation of the newly appointed Prime Minister Sushila Karki because his group was not consulted. Last week, advocate Om Prakash Aryal was appointed Home Minister as well as Minister of Law, while former CEO of NEA Kulman Ghising as Energy Minister Urban Development Minister and Minister of Physical Infrastructure, and former finance Secretary Rameshwore Khanal as Finance Minister last week and were sworn in on 15 September. The new ministers have their work cut out as Prime Minister Sushila Karki has set elections for the House of Representatives for 5 March 2026. Electoral reform such that Nepalis outside the country could vote remains a challenge due to time limitation and because of the dissolution of Parliament. The interim government could ask for two more months beyond the initial six to prepare for voting.&nbsp; KNOW THE MINISTERS Names of possible ministers and their portfolios: Mahabir Pun, Minister of Education, Science and Technology  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921150956_5e04418c4d79e283ac66932fbe9cffa8bfdccb8973c7ba867b3a241d0a5c19a4.jpg" data-media-id="editor_0" data-image-id="20250921150956_5e04418c4d79e283ac66932fbe9cffa8bfdccb8973c7ba867b3a241d0a5c19a4" data-rendition-name="original" width="2365" height="3143" loading="lazy" alt="Mahabir Pun"> </figure>  He is the founding chair of the National Innovation Center which was set up in 2012 and most recently restored 484 medical devices including ventilators, dialysis machines, X-rays and autoclaves worth Rs243 million in government hospitals.&nbsp; Pun, 70, is the recipient of the prestigious Ramon Magsaysay Award for community leadership in 2007 for his effort in connecting rural Nepal with wireless internet. Jagadish Kharel, Minister of Communications and Information Technology  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921150956_25b90f5febc65782a3e74a288212175d075b4078802cdd1c0fe16767cf9dd95c.jpg" data-media-id="editor_1" data-image-id="20250921150956_25b90f5febc65782a3e74a288212175d075b4078802cdd1c0fe16767cf9dd95c" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="Jagadish Kharel"> </figure>  He is a tv journalist with nearly 20 years of experience. He is currently the news head of Image Channel as well as the host of the show Hot Seat, and is known for in-depth political and government policy analysis and commentary. Kharel was previously thought to have been invited to join Rabi Lamichhane’s Rastriya Swatantra Party (RSP) after it emerged as the fourth biggest party in Parliament after the last elections. Anil Kumar Sinha, Minister of Industry, Commerce and Supply; Minister of Law, Justice and Parliamentary Affairs; Minister of Land Reforms, Cooperatives and Poverty Alleviation  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921150956_ba224a8c2d4c4434ed6e08e858d798b382a06c8606583841c935f927acb5d2f4.jpg" data-media-id="editor_2" data-image-id="20250921150956_ba224a8c2d4c4434ed6e08e858d798b382a06c8606583841c935f927acb5d2f4" data-rendition-name="original" width="1200" height="710" loading="lazy" alt="Anil Kumar Sinha"> </figure>  Anil Kumar Sinha was appointed as a Supreme Court Justice in 2016, and retired in 2023, after reaching the age limit of 65. Home Minister Om Prakash Aryal was formerly also given the responsibility of leading the Ministry of Law. Sinha specialises in tax and corporate law. Most recently, Sinha was a member of the Supreme Court bench that issued a verdict allowing an investigation into misappropriation of government land at Lalita Niwas in Baluwatar. Sinha played a significant role in the eventual impeachment of the then chief of the Commission for the Investigation of Abuse of Authority (CIAA) Lokman Singh Karki ion 2016 over legality of his appointment. He also resolved the dispute concerning the first dissolution of the House of Representatives by then-Prime Minister KP Sharma Oli on 20 December 2020. Madan Pariyar, Minister of Agriculture&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250921180928_83a9a885704826f04b439cf5096063a0596544a750f78b5ff02ee82df43ca0cf.jpg" data-media-id="editor_3" data-image-id="20250921180928_83a9a885704826f04b439cf5096063a0596544a750f78b5ff02ee82df43ca0cf" data-rendition-name="original" width="640" height="640" loading="lazy" alt="Madan Pariyar"> </figure>  Madan Pariyar is a scholar with notable research contribution in several fields including poverty alleviation, inclusion, good governance, agriculture, industry resource management. He obtained his doctorate and master'sin enginerring from the Asian Institute of Technology in Bangkok and Bachelors of Science in Agricultural Engineering from the Allahabad Agricultural Institute in India. Bcck in 2011, the government appointed Pariyar the chair of the State Restructuring Commission (SRC) which was tasked with advising the Constitutional Assembly on the best possible model of federalism to be adopted for Nepal. Pariyar is also the chair of Samata Foundation that advocates for the rights of the Dalit people and their capacity building.&nbsp; OTHER NAMES Ajaya Bhadra Khanal, research director of the thinktank Center for Social Innovation and Foreign Policy (CESIF Nepal) is likely to be appointed the chief adviser to the Prime Minister. GenZ campaigners have also suggested the name of veteran Nepal Airlines aptain Vijay Lama for the Minister of Culture, Tourism and Civil Aviation. Rights activist Mohna Ansari, heritage conservationist Ganapati Lal Shrestha and Mansi Bhattarai, daughter of former Maoist prime minister Babauram Bhattarai have also been floated for various ministries. PM Karki has said she will limit her cabinet to 11 members for 22 ministries. Karki is likely to handle two or more ministries herself. At present, Kulman Ghising is leading three ministries while Om Prakash Aryal has two.&nbsp;

Nepal PM expands her Cabinet

What does a journalist do when young protesters are shot in front of her? Does she do her job and stay neutral? Can you stay neutral?&nbsp; As protests engulfed Kathmandu, Nepal's journalists found themselves reporting a story that was personal. While doing their job, some of them were even targeted by mobs.&nbsp; Dart Asia Pacific Fellow <a href="https://www.linkedin.com/in/arunkarki/" target="_blank">Arun Karki</a> visited their newsrooms and spoke with his colleagues on their experience of reporting the GenZ protests that erupted on 8 September. These are the first-hand accounts of journalists who witnessed the turmoil in the city they call home. Sunita Karki was at a workshop in a hotel on 8 September. She saw the first waves of protests through hotel windows. Curfew alerts flooded her phone, a vehicle belonging to a human rights group sat burning across the road, young boys were taking their wounded friends on motorbikes to the Everest Hospital, and police were beating a teenager with hands raised up.&nbsp; “I cried a lot,” she said, but the tears were not out of fear -- they were because she felt guilt. “I couldn’t write the news. We were witnessing these scenes from a five-star hotel.” By evening, the death toll had reached 19. On 9 September at about 3:35 p.m. &nbsp;her outlet, the Annapurna Post's office in Tinkune, Kathmandu, was set on fire. Staff had to leave the building as parts of the newsroom burnt down.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250924040948_e1cc49c9e4fcc4bd4cd3c0163c782fc4e9956bf633cff7b53a63cf8e2dd74cff.jpg" data-media-id="editor_1" data-image-id="20250924040948_e1cc49c9e4fcc4bd4cd3c0163c782fc4e9956bf633cff7b53a63cf8e2dd74cff" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="Dart Centre Asia Pacific"> </figure>  When she knew her office was burning, she anxiously told her husband that she would resign from the job: "If we have to hide our identification cards in every protest, what kind of journalist am I?" she asked herself. She filed a story the next day, but her emotions kept bouncing between that of a journalist’s duty and shock. She said that in moments like this, it’s hard to feel truly neutral. After watching the police beat people, she felt a strong urge to step in, not just stand back and report. The first real calm came later, when people came to the street and lit small candles together. “This was a sort of victory procession. I felt some relief after brutal days,” she said. <a href="https://www.linkedin.com/in/angaddhakal/" target="_blank">Angad Dhakal</a> a photojournalist who works at Kantipur National Daily, was standing outside his office building when protesters stormed in and set parts of it on fire. He had already been informed that protesters were planning to torch his office building and &nbsp;rushed to his office hoping to save his hard drives containing ten years of photography work. He failed. He raised his camera and "forcefully" pressed the shutter - more to document the scene than out of "professional enthusiasm or duty".&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250924040948_ebafaacb85c4ea045c41f2c63f1eff06fee9a4ddb5fbf419724e1a5d533781fa.jpg" data-media-id="editor_3" data-image-id="20250924040948_ebafaacb85c4ea045c41f2c63f1eff06fee9a4ddb5fbf419724e1a5d533781fa" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="It is hard to feel neutral NT"> <figcaption>Photo: GAURAV POKHAREL</figcaption> </figure>  “My office was burning. What should I photograph?” he recalled. A few moments later, a protester noticed the “PHOTO” label on his yellow Press jacket. Dhakal deflected it by saying he was an early career freelancer and YouTuber. So that protesters wouldn't find out, he went to one corner and took his jacket off. When it comes to covering street protests, &nbsp;Angad usually stands near the police because it feels safer. But on 8 September, fire and gunshots made even that area unsafe. A rubber bullet hit his friend Dipendra Dhungana that badly injured him.&nbsp; He thought, “Where do we go now? If we stay here, we’ll be hit.” After witnessing two days of protests, violence, and killings, and seeing his own office burning, he couldn't sleep for days. The same afternoon that government buildings burned and Kantipur was attacked, a message in a protest Discord forum talked openly of 'attacking Kantipur'.&nbsp; Rumours spread to other outlets. Outside OnlineKhabar's office, where <a href="https://www.linkedin.com/article/edit/7376157229248528384/?author=urn%3Ali%3Afsd_company%3A79132377#" target="_blank">Gaurav Pokharel</a> works, the newsroom manager saw “very suspicious people were walking around”. They lowered blinds, avoided windows, locked the front gate and dispersed staff to other places across the city. The outlet was threatened and effectively locked down, but not torched. Pokharel hid his press ID. “ I never showed the ID card. Sometimes I had to enter the crowd shouting slogans, just to blend in among the protesters,” he said. He watched people fall under gunfire, he helped pull one surrounded journalist out of a hostile crowd.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250924040948_3b335eee57280373cb51f460534ca4476df23f89c787ba9e4a66d116a537b1a3.jpg" data-media-id="editor_5" data-image-id="20250924040948_3b335eee57280373cb51f460534ca4476df23f89c787ba9e4a66d116a537b1a3" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="It is hard to feel neutral NT"> <figcaption>Photo: GAURAV POKHAREL</figcaption> </figure>  As a freelancer, Gaurav also contributed articles for international outlets. Later, while transcribing an interview of a young protest organiser, he wrote to his editor at an international outlet : “This was very hard to write. I cried many times while doing it.” He had been working at a stretch for days battling bouts of exhaustion and low blood pressure.&nbsp; Protesters vandalised and set fire within the Singha Darbar complex housing Nepal Television and Radio Nepal. They tried to disrupt public broadcasting.&nbsp; Surendra Paudyal began the day with his press ID hanging on his neck, thinking it would let him move freely. But when he reached Singha Darbar around 3:30PM, the situation felt dangerous.&nbsp; He put the ID in his pocket. When asked what mattered most, he answered without pause: life comes first. In that moment, he felt real fear and a strong duty to protect his team.&nbsp; His focus narrowed to basic things: stay calm, find exits, get everyone out safely. Later, they were able to keep the 8 pm news on air through a regional link. He felt mixed emotions and a sense of relief that the broadcast continued, but also sadness and anger that their own studio had come under attack. Reprinted with permission from the Dart Centre Asia Pacific, a regional hub that provides trauma-informed support and advice to journalists.

"It is hard to feel neutral"

Among the songs GenZ protesters were chanting at the Mandala on 8 September was Amrit Gurung’s folk-rock rendition of the Panchayat-era patriotic song, <a href="https://www.youtube.com/watch?v=0iXnL31W93c">रातो र चन्द्र-सुर्जे जङ्गी निशान हाम्रो</a>. But amidst waving double pennants that day in Kathmandu were strands of Gopal Yonjan singing <a href="https://www.youtube.com/watch?v=N7D8P-g3Uw4" target="_blank">बनेको छ पहराले</a> and <a href="https://www.youtube.com/watch?v=57SlGf4m7R4" target="_blank">देशले रगत मागे</a>. The irony is that the message of Nepali nationalism the musician was trying to convey 50 years ago with his lyrics carries a new resolute relevance in today's context: I am a son of Nepal who will never kowtow to anyone.&nbsp; You can behead me, but I will never bend the knee. &nbsp; I can withstand fire, but will not stand injustice.&nbsp; If the nation demands blood, I will sacrifice myself. My mother will not weep, for she is the daughter of a Nepali. This was pure patriotic poetry that only someone like Gopal Yonjan could write. They are inter-generational and immortal — speaking as much for the GenZ today, as it was for the early days of nation-building when they were recorded in vinyl and broadcast over Radio Nepal.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092210094_4d5f65bf3ba2d2823e3da8aff6a77f2b9aa4eff4b1e1b6a8eeed8c0bcb58e47b.jpg" data-media-id="editor_3" data-image-id="2025092210094_4d5f65bf3ba2d2823e3da8aff6a77f2b9aa4eff4b1e1b6a8eeed8c0bcb58e47b" data-rendition-name="original" width="2000" height="1600" loading="lazy" alt="Gopal Yonjan NT 1"> <figcaption>Gopal Yonjan was an adept flautist from a young age in Darjeeling.</figcaption> </figure>  Those two songs together have over 20 million views on the Music Nepal YouTube channel, and many of the comments have been posted after the 9 September massacre and the raging conflagration at the epicentre of the Nepali state&nbsp; They attest to the emotional depth of Nepali nationhood and love of motherland in every citizen of every generation no matter how dreadful the circumstances — and especially when the future looks fragile and uncertain.&nbsp; The release of Gopal Yonjan: The Man &amp; His Music by his wife Renchin could not have come at a more momentous time in Nepal’s history to celebrate this iconic legend of modern Nepali music. Yonjan would have been 82 today, and as a poet, lyricist, singer innovated and improvised using Nepal’s folk traditions to infuse modern arrangements, meld melody with harmony, and lend them words that made the songs eternal.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092308098_76c4e4df756de0c1bea9858e1da0bcb6acb8145f27963e1679f5509a6ac2f078.jpg" data-media-id="editor_4" data-image-id="2025092308098_76c4e4df756de0c1bea9858e1da0bcb6acb8145f27963e1679f5509a6ac2f078" data-rendition-name="original" width="2712" height="3900" loading="lazy" alt="Gopal Yonjan Narayan Gopal"> <figcaption>Narayan Gopal with Gopal Yonjan, the ‘Gopal Duet’ at Swayambhu circa 1963.</figcaption> </figure>  HOMECOMING Renchin Yonjan brings us an intimate family album of historic photographs of Gopal growing up in school in Darjeeling, his arrival in Kathmandu and the decision to make Nepal his home. She quotes Gopal: ‘I was deeply moved by the very glimpse of Nepal. I was enchanted by the greenery of Kathmandu, the gentle nature of the people, their pure thoughts, and their hospitality … how wonderful it would be to spend my live in such a beautiful and serene place.’ It was a kind of homecoming for Gopal Yonjan, the land his ancestors left to migrate to British India. In Kathmandu he found kindred spirits and musicians as passionate about their craft as himself: Narayan Gopal, Nagendra Thapa, Ratna Shumsher Thapa, Shiva Shanker, Pushpa Nepali  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250922100920_99a97f6cd76c130d5df91a38ac236906bcb21ba6fc2d2d693ba51e0a97c045d4.jpg" data-media-id="editor_5" data-image-id="20250922100920_99a97f6cd76c130d5df91a38ac236906bcb21ba6fc2d2d693ba51e0a97c045d4" data-rendition-name="original" width="1500" height="1071" loading="lazy" alt="Gopal Yonjan"> <figcaption>Gopal Yonjan arriving at Kathmandu airport in 1963 and greeted by Nepali singers Pushpa Nepali, Dilmaya Khati, Shiv Shanker Shrestha, among others. </figcaption> </figure>  Gopal Yonjan and Narayan Gopal hit it off right away, complementing and inspiring each other with their shared love for meaningful music. They came to be known as the ‘Gopal Duet’, and Yonjan wrote in Nepali in his diary on 21 April 1963 about their first meeting: ‘I was immediately struck by his talent and presence. There was something in both his artistry and demeanour that drew me in. It didn’t take long for us to draw close.’ Towards the end of his life, Gopal Yonjan drifted away from themes of patriotism and unity to celebrate music in its purest form in his Gopalaya Studio in Kathmandu. It became art for art’s sake.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250922100912_f9aeec8d96049c580a4b63789664e1ae80971d3be3c7809acfe51b84e3e31cd1.jpg" data-media-id="editor_6" data-image-id="20250922100912_f9aeec8d96049c580a4b63789664e1ae80971d3be3c7809acfe51b84e3e31cd1" data-rendition-name="original" width="2000" height="1304" loading="lazy" alt="Gopal Yonjan"> <figcaption>Gopal Yonjan at his Gopalaya Studio in Kathmandu in 1992.</figcaption> </figure>  The words of his song <a href="https://www.youtube.com/watch?v=D8ZHg3wkvzw" target="_blank">मेरो गीत मेरै प्रतिविम्ब होइन</a> immortalised by Narayan Gopal has lines that give goosebumps to anyone who listens to them: मेरो गित भन्ने अधिकार छैन, गित को पो म हूँ मेरो गित होइन (I have no right to call this my song. This song does not belong to me. I belong to this song.) &nbsp; In Nepal, Gopal Yonjan also found a more complicated story. There were grand historical narratives of nationalism, bravery and glory, but there was an undercurrent of fear and control. Renchin writes in the chapter, Tell Me Where My Country Lies: ‘[Gopal saw] national pride slowly erode in the face of social exclusion, political silence, and economic disenfranchisement.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250922100912_57578ebebc7e405cf6ad3080611366893bee30cfc071567e6509038da866b2f2.jpg" data-media-id="editor_8" data-image-id="20250922100912_57578ebebc7e405cf6ad3080611366893bee30cfc071567e6509038da866b2f2" data-rendition-name="original" width="1500" height="1043" loading="lazy" alt="Gopal Yonjan"> <figcaption>Renchin and Gopal Yonjan in their garden in Kathmandu in the late 1980s.</figcaption> </figure>  Gopal Yonjan’s song <a href="https://www.youtube.com/watch?v=Zru8yWSuRCI" target="_blank">भनिदे नेपाली दाइ मेरो देश कहाँ पर्यो</a> is ‘as much an elegy as a manifesto’ with searing lines like ‘Where is the river that ran red with Nepali blood? Where is the battlefield where our defenders wiped their khukri?’ Gopal Yonjan sings this song himself, reminding Nepalis of the sacrifices made to forge this nation, and for us not to squander them.&nbsp; In his song <a href="https://www.youtube.com/watch?v=_pVKpsK6Wy8" target="_blank">लाहुरे</a>, Yonjan celebrates Nepal’s illustrious history written in blood both to keep the nation free and then spilling it to defend other countries. Today, the same song takes on added meaning of Nepali lahure shedding not blood but sweat and tears as they toil abroad to send money to families back home. It evokes the pain of separation, and an anger at an uncaring state that drives them to leave. Gopal Yonjan died aged 53 in 1997 in a New Delhi hospital, leaving a legacy that still defines the Nepali nation in ageless musical compositions. The US-based <a href="https://www.gopalaya.org/" target="_blank">Gopayala</a> and the Gopal Yonjan Foundation have worked to remaster some of the tapes and recordings that are in safekeeping at Cornell University’s Carl A Koch Library.&nbsp; Renchin Yonjan has collected some of that valuable documentation in her book, Gopal Yonjan: The Man &amp; His Music. Her concluding paragraph sounds prescient because of what Nepal has just been through: ‘Gopal’s patriotic compositions remain timeless not because they repeat old slogans, but because they ask new questions, and demand that we answer not with our voices, but with our lives.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025092210090_3d0b5ecad2313b09e83e0de91bf510004f1ff836d7e66f0543ccd49432bb6386.jpg" data-media-id="editor_12" data-image-id="2025092210090_3d0b5ecad2313b09e83e0de91bf510004f1ff836d7e66f0543ccd49432bb6386" data-rendition-name="original" width="1136" height="518" loading="lazy" alt="Gopal Yonjan"> </figure>

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