By Pratibedan Baidya

Amid reports that Maoists are demanding huge amount of “donations” from joint venture banks and financial institutions in the country, Nepal Bankers Association (NBA) has issued an appealed urging people not to approach banks for any kinds of donations.

A public notice issued by the NBA on Tuesday said that banks collect money from the depositors and mobilize it in different sectors. Banks have to pay the money to the depositors as and when they demand it, so they can’t provide money to anyone as donations or assistance, the NBA said.

Stating that the Nepal Rastra Bank—the central bank in the country– closely monitors their activities and the banks make public their financial reports every three months, the Bankers’ Association said it did expect anybody or institutions demand for such assistance or donations from banks.

Despite repeated calls from Nepalnews, Radhesh Pant, president of NBA, could not be reached for comments. But talking to us on condition of anonymity, officials at the NBA said the Association had issued the statement as bankers in the country were approached to provide donations from time to time from different sectors. They, however, refused to comment on whether the latest public notice by the NBA was in response to the Maoists’ spree to raise “forced donations.”

Sources, however, revealed that NBA’s public notice came after joint venture banks complained that they were being asked for “huge donations” by the rebels over the past few weeks. A source revealed that local unit of the Maoists demanded Rs one million from a Pokhara-based branch of a leading joint venture bank. “Our manager level staff regularly receive threatening calls from the rebels and we are worried about their safety as well as of possibility of armed raids from the insurgents,” a leading banker told us on condition of anonymity.

On Monday, a team of senior army and police officials visited all the commercial banks in Nepalgunj and asked them to further strengthen their security measures. The visit came days after Maoist insurgents raided Karnali Development Bank in Nepalgunj in broad day light and looted Rs 1.8 million.

Talking to Nepalnews, Hari Prasad Koirala, manager of Nepal Bangladesh Bank Nepalgunj branch, informed that the security team inspected the office and received information about the internal security of the bank.

Likewise, Deputy Superintendent of Police Basanta Kumar Lama, one of the members of the security team that visited the banks in Nepalgunj informed that they visited the banks to review the security arrangements of the bank and to better coordinate to avoid any untoward incident.

He informed that they had advised some banks to improve security arrangements, adding that security has been beefed up in the city to avoid any such incidents.

Nepal Rastra Bank

Photo Source : Nepal Rastra Bank
Nepal Bank Limited, one of the oldest banks of the country had shifted or merged its 104 branches across the country due to the security challenge.

According to officials at the Nepal Bank Limited, 29 branches of the Bank had been affected from various insurgency related events.

Cash and property worth nearly Rs 250 million has been looted from the NBL after the onset of the Maoist insurgency.

Similarly, spokesperson of the Rastriya Banijya Bank, Janardan Acharya, said that Maoists have looted property worth 160 million rupees from various branches of the Bank over the past few years.

The RBB has closed a total of 20 branches over the last three years mainly due to security reasons.

Though no businessman has come forward so far saying that he or she has been approached by the rebels “for donations,” privately they admit that they are indeed receiving calls for “donations.”

Industrialist Rajendra Kumar Khetan said that activities of the Maoist affiliated trade union had increased rapidly in the recent days, which had affected the whole business sector. He did not elaborate.

He said that such activities will have not only financial but also social and mental effect, which will hamper the production and growth of the economy in the country.

Despite repeated attempts, Nepalnews could not get response from the security bodies regarding the problem of extortion being faced by the business enterprises including financial institutions.

On Wednesday, two security personnel, three rebels and a civilian were killed when a group of rebels attacked a security team that was providing cover to a vehicle carrying cash from the local branch of RBB to the local security base. The authorities said the rebels, however, could not loot the money. Most of the banks in the districts deposit their cash at the local security bases for security reasons.

A study conducted by the International Crisis Group (ICG)—a Brussels-based think tank—says the CPN (M) is Nepal’s richest political party. In its study entitled “Nepal’s Maoists: Their aims, structure and strategy” published in October last year, ICG quotes a report saying that between February 1996 and May 2003 alone , the Maoists are estimated to have seized over USD 4.6 million in cash and precious metals.

In early 2002, a former Maoist district commander estimated that the rebels needed to spend Rs 10 million every month to keep the war going. This did not include political or administrative expenses, and the movement has grown significantly over the last four years.

“Despite a crackdown on Maoist fundraising since February 2005, extortion continues,” said the ICG report. “Funding a movement of the size and geographical extent that the Maoists have created is not easy but there is no sign that a lack of income alone will prove a decisive factor in weakening the insurgency,” it concluded.