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

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

Unlike many countries, there is not much incentive in Nepal for the private sector to fund charities and non-profits. Donations and grants are not tax-deductible.
Yet there are corporate entities that have Corporate Social Responsibility (CSR) in their portfolio of activities through foundations that they have set up. Some do it loudly to gain public relations mileage, while others are quiet about their <a href="https://nepalitimes.com/opinion/comment/norway-supports-himalayan-climate-research?mdrv=www.nepalitimes.com&amp;=1">generous support</a>.
The CSR outlay of factories and manufacturing companies is regulated by Industrial Enterprise Act (IEA), while the Nepal Rastra Bank oversees grants banks and financial institutions contribute and requires them to set aside 1% of their net profit for CSR activities.
The guideline requires banks and financial institutions to donate to activities covering education, health, environment and financial literacy, among others. Recently, the Supreme Court directed the government to formulate a Bill in the parliament to standardise and regulate the private sector’s CSR activities.
“We receive guidelines from Nepal Rastra Bank and follow them,” says Pranisha Shrestha who heads the CSR Department at NMB Bank. “We have got a notice about updates on those guidelines, and we will adapt accordingly.”
<a href="https://nepalitimes.com/news/greening-nepal-s-tourism">Environmental sustainability </a>is one of the important components of CSR for Nepali companies, and there have been many initiatives aimed at urban renewal. One of the most visible is of the telecommunication company Ncell, which is among Nepal’s largest taxpayers.
Five years ago, Ncell adopted a 6km stretch of the Ring Road from Ekantakuna to Koteswor-Kalanki, planting 12,000 saplings. They have now grown into<a href="https://nepalitimes.com/opinion/seeing-the-forest-and-trees-in-nepal"> a thick forest</a> along the embankment of the road.
Not only is the lush greenery in an overbuilt part of Lalitpur soothing to the eye, it also helps in reducing temperature within <a href="https://nepalitimes.com/news/in-the-heat-of-the-moment-5xcycyot">the urban heat bubble</a>, and also contributes to reducing air pollution and traffic noise.
“We started a pilot project along 600m of the Ekantakuna section of the Ring Road during the pandemic,” recalls Bishakha Lakshmi Khadka, Director of Corporate Communications and Sustainability at Ncell. “It went really well, and after that we extended the<a href="https://nepalitimes.com/here-now/saving-cities-with-trees"> tree planting</a> and upkeep to Kalanki.”
Sustainability also means making younger Nepalis aware of <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>and environmental sustainability, which is why Ncell has also undertaken a Green School initiative in and around Kathmandu Valley. Besides its One-Tree-One-Youth and 1 Million Trees campaigns, the initiative also aims at behavior change about littering with its waste hackathon in schools.
“The young students can be catalysts with a multiplier effect beyond their schools to society at large, and it has inter-generational impact into the future,” explains Khadka.
Indeed, while <a href="https://nepalitimes.com/banner/tree-mendous">Nepal has doubled its forest cover </a>in the past 30 years to 46% of the country’s area, urban centres like Kathmandu do not have much open spaces and greenery left. And that is where companies like Ncell, Jawalakhel Group of Industries, and others have focused on CSRs.
NMB Bank also runs financial literacy programs for youth where they can learn more about social media safeguards, digital payment systems, with a focus on safety and security. Such training not only helps build skills for the future but also protects young Nepalis from online crime.
“<a href="https://nepalitimes.com/opinion/protecting-children-from-anti-social-media">Threats to young minds through social media</a> use are growing as platforms feed algorithm-driven content,” says Shrestha. “We felt media and digital literacy are important in all seven provinces not just to protect young people, but also give them the confidence to use digital financial systems.”
The bank has a special focus on women in leadership programs, and provides scholarships provided in schools across Nepal on environment and sustainability in higher education. Health is another sector where private companies have worked with donating medical equipment, sponsoring health camps and conducting blood donation drives.
CSR or PR?
Other companies heavily involved in CSR include NIMB Bank which contributes to heritage conservation and education, Buddha Air helps farmers in Morang to increase productivity, VOITH with its motto ‘Little things We Do’ provides scholarships to students and has gifted &nbsp;vehicles to hospitals and nature conservation groups, Dwarika’s Hotel promotes organic farming and zero waste initiatives, heritage conservation and helps revive traditional handicrafts.
Although some CSR activities have been criticised for masquerading as PR and for greenwashing, many Nepali companies are actually contributing to improve the situation for individuals in need and underserved communities.
It also brings a sense of accountability to the corporate sector so they look beyond shareholder profit with greater involvement in the public good. In Nepal, where government delivery mechanisms are not up to speed in the social sector and environmental sustainability, CSR is a vehicle for public-private partnerships.
Collaboration with the government is an important aspect of these initiatives since that allows localised campaigns to be scaled up by showing what is possible. For example, the three Metropolitan Cities of the Valley and other private companies are trying to emulate what Ncell has achieved on the Ring Road.
“The Ring Road plantation project has been massively successful,” says Khadka “We were recognised by the Lalitpur Metropolitan City and the Forestry Department for adding greenery to what would have been just an asphalt strip.”

Corporates responsible to society

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;

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