A newly released report has revealed that most of the institutions running as hospitals and health research centres are not doing any research and evading taxes.

A study report prepared after three months of study by Nepal Health Research Council (NHRC) said of the 367 such institutes active in 40 districts till 14 July 2005, nearly 76.5 percent were not conducting health research.

The report states less than 15 percent of such institutes displaying their signboards, as “research centre” did know about the meaning of research. The report further states, “These institutes take the regular check up of the stool, urine and blood as health research activities. The report concludes that the very terminology ‘research’ helps them attract more customers.

“They also said that the main reason behind putting the word ‘Research’ in their signboard was to deduct government tax, compete with other centres and make it fancy and catchy for the public to draw their attention towards their centre,” the report concludes.

The report also said that most of the research institutions are centered in the capital or in city areas.

The report also states that Norvic Health Care and Research Centre, Om Hospital and Research Centre, Medicare Hospital and Research Centre among others in Kathmandu did not allow the council’s investigation team to assess the details of ‘research activities’ carried out by them.

The institutes have been evading taxes while importing goods from other countries in the name of research, the report said.

According to officials, most of the institutes registered for health research have not been carrying out research activities and are involved in tax evasion as well.

The report recommended for making provision of taking pre-approval from NHRC before registration of such research centres and the NHRC should prepare Terms and Conditions for putting the word “Research” in the title name of any organization among others.

Four civilians were injured when a bomb planted by the Maoists went off at the Bankekhola area of east west highway bordering Sarlahi and Mahottrai districts on Thursday.

A press statement issued by the Ministry of Defense (MoD) said three civilians injured are undergoing treatment at Janakpur zonal hospital, while one is undergoing treatment at Birjung.

Maoists obstructed the east west highway placing obstructions in different parts of the highway leaving hundreds of passengers stranded since Thursday.

Transportation to eastern part of the country from Siraha remained stalled due to the obstruction created by the Maoists.

The statement further said one Maoist was killed in a security action carried out by the security forces in Sinchuwa area of Nawalparasi district on Thursday.

Security force recovered equipment used in making electric booby traps and some cash from the dead Maoist, the statement added.

There has been mild rain in Kathmandu on Friday after a gap of more than five months.

According to the Department of Meteorology and Hydrology (DOMH), there has been a 2.3 mm rainfall in Kathmandu. DOMH officials said Friday’s rainfall was due to the “western wind” that was flowing from western parts of India and Nepal and was moving towards eastern region. They said the impact of “western wind” will remain till Saturday and there will be improvement in the weather from Sunday.

Mid-western district of Surkhet had the heaviest rainfall on Friday receiving 14.3 mm of rain, according to DOHM.

Experts said Friday’s rain would have beneficial impact on winter crops and may also augment water sources. It was, however, not clear whether it would help to lessen the impact of countrywide power cuts.

There had been no rain in Kathmandu and other parts of the country throughout winter (during the months of November-February).

In what is seen as a hardening stance of the government towards the opposition, Home Minister Kamal Thapa has accused the seven party opposition alliance of trying to create anarchy in the country in collaboration with the Maoist rebels.

Addressing a conference of party cadres of central region of the Rastriya Prajatantra Party (RPP) faction led by him in the capital on Friday, Minister Thapa accused that the opposition were aiding to increase violence in the country by joining hands with the rebels.

“The government would not let it happen at any cost,” he declared.

Saying that His Majesty the King was in favour of holding talks with all political forces in the country, the interior minister blamed what he called the “stubborn demands” of the agitating political parties for failure in holding talks. He urged the partied to sit in talks with the king to find peaceful solution to the crisis.

“The government was ready to hold talks with the rebels if they were really willing for dialogue,” he added.

Addressing the same function, vice chairman of the RPP (Thapa), Padma Sundar Lawati, accused that Nepal’s southern neighbour, India, was responsible for intensifying the armed conflict in Nepal. He said conflict in Nepal would not subside “unless India stops supply of arms to the rebels.”

India terms Nepali Maoists as “terrorists” and says they pose a threat to its national security. But critics allege that India has not taken keen interest to curb the activities of Nepali Maoists in its territory.

His Majesty King Gyanendra granted audience to the chiefs of security agencies at Ratna mandir palace in Pokhara, Friday.

The King granted audience to chiefs of Royal Nepalese Army-Pyar Jung Thapa, Armed Police Force- Saha Bir Thapa, Nepal Police- Shyam Bhakta Thapa and National Investigation Department- Devi Ram Sharma.

Earlier in the day, His Majesty the King visited the joint security base camp at Pashgaun in Lamjung district.

His Majesty acquired information about the security situation of the area on the occasion.

The base camp was established some two years ago to control growing influence of Maoists in the area.

Their Majesties have been in an informal visit of the western region for the past two weeks. The King had also granted audience to the ministers and leaders of various political parties in Pokhara.

The King came to the cCapital to chair the meeting of the Council of Ministers on Thursday and flew back to Pokhara in the evening.

The fifth central committee meeting of the Federation of Nepalese Journalists (FNJ) has announced new phase of protest programmes against what it called the government’s on-going suppression of Nepali media.

The two-month long protest programme announced by the FNJ include interaction, rallies and other programmes calling for restoration of total press freedom in the country.

The meeting also terminated the general membership of P. Kharel, Jashuda Pradhan, Jib Ram Bhandari, Ram Prasad Khanal, Kumar Yatru, Indra Rizal, Rajesh Jha, Komal Oli, Bhagawan Tripathi, Dinesh Shah, Badri Prasad Kafle, Krishna Pariyar, Nabindra Sharma and Karna Prakhar Dhital alleging them of acting against the movement for press freedom in the country. The journalists in question actively participated in the first conference of National Federation of Journalists (NFJ)—that supports the royal takeover of Feb. 1 last year.

The FNJ has urged the government and Maoist rebels to observe ceasefire immediately and create an environment for peaceful solution to the crisis facing the country. The FNJ has also demanded immediate release of all detainees arrested from peaceful rallies.

The umbrella organization of the country’s media professionals alleged that security forces have been misbehaving with the journalists and media houses in districts and asked the local authorities to take action against the members of security forces involved in such activities.

FNJ said that its agitation will continue unless atrocities against press are stopped and the government withdraws the media ordinance promulgated in October last year.

The priority should be peace process, not the polls that are boycotted by political parties

By Dr. Som P Pudasaini

King Gyanendra on the completion of one year of his takeover on 1 February 2006 claimed that security and people’s confidence improved and international “prestige and credibility” was restored. He promised peace and prosperity within one year and to reenergize democracy through elections at all levels by April 2007. He termed the continuing Maoists violence as “petty crimes” and advised them to enter the mainstream through ballots. Then on the Democracy Day message he called on all “willing” political parties for a dialogue and granted audiences to three dozen politicians and public not too opposed to his February takeover. The mainstream political parties rejected the call for dialogue terming it meaningless. International community continues to be concerned with the crisis and absence of concrete steps towards negotiated settlement. Can one hope for peace, prosperity and restoration of democracy in the coming year?

The Maoists, who still call shots in most of the rural areas, have attacked several urban centers, including Tansen and Ilam, in the past several weeks and destroyed life and properties of many people, including security forces. Many of their cadres have also been killed and wounded in the process. Bandhs and blockades, reported to cost one billion rupees a day, are on the rise and disrupting normal life. The cumulative death toll of over 13,000 is rising unabated. In spite of some military successes, people across the country are terrorized and feel unsafe in view of the increasing action of the Maoists and the security forces.

Political parties, civil society, media and professional organizations are continually agitating. The agitation has now broad support but is yet to develop a full steam. Human rights violations have unacceptably risen. The Maoists and the seven-party alliance have signed a 12-point understanding to fight against the “autocratic monarchy” and resolve the prevalent crisis of security, peace and politics through a constituent assembly election. The alliance is not happy with the implementation of the understanding by the Maoists and they do not seem fully comfortable with them yet.

The municipal elections concluded on 8 February 2006 with no participation of recognized political parties and marred by curfews and arrests of political and civil society leader was termed “hollow” by the international community and a “complete farce” by political parties. Almost fifty percent of the seats were left uncontested. Most of those elected are without proper experiences and qualifications to be suitable for the challenging tasks in the municipalities. Only about 21 percent of vote was cast. While the government claimed that the elections were successful and held without “booth capturing and manipulation,” it was largely seen as a waste of resources and a bad omen to the usefulness of elections proposed for 2007 under the royal proclamation.

The king’s February roadmap is unlikely to ensure peace, democracy and economic wellbeing in the coming year without peace and reconciliation with the political parties.
On 13 February 2006, the Supreme Court scrapped the Royal Commission for Corruption Control (RCCC) and declared all its actions null and void. The landmark judgment also clarified that the king neither has the “authority to assume sovereignty vested on the people” nor the “right to exercise unlimited powers going against the constitution”. Additionally, the article 127 can be used only to remove difficulty in implementing the constitution not to “curtail citizen’s rights guaranteed by the constitution.” It was a clear guidance that the king must give up direct rule and reconcile with the people’s representatives to resolve the conflict and restore democracy.

The economy is not doing well at all. It is growing at a meager 2.3 percent rate per annum compared to over 6 percent envisaged under the Tenth Plan and 7 and 10 percent achieved by our neighbors, China and India . Tourist arrival has dipped by 45 percent between 1999 and 2005 from almost 500,000 to less than 290,000. Both business and pleasure is affected by power “load shedding” of 35 hours a week and will affect more in the coming weeks. Revenue mobilization is poor. Donors are reducing their support. Development work is almost standstill. Security expenses are accelerating.

The international community supports restoration of democracy and resolution of conflict through negotiations. It has expressed its displeasure with the royal take over, including by reducing financial support and by stopping supply of lethal weapons.

India supports constitutional monarchy and multiparty democracy. It wants the king to talk to the mainstream political parties and negotiate with the Maoists. President George W. Bush in New Delhi on 2 March said that India and the US “agreed that the Maoists should abandon violence and that the king should reach out to the political parties to restore democratic institutions”. US Ambassador James F Moriarty on 15 February declared that the authoritarian rule by the king has been “unsuccessful” as it has “emboldened” the Maoist insurgents and widened the division between “the parties and the king”. He advised reconciliation between the king and the political parties. The Ambassador’s antagonism against the 12-point understanding and suggestion to isolate the Maoists has been controversial.

China has begun to encourage reconciliation. Japan has now expressed its concern with the state of affairs, including with the illegal arrests and detentions of leaders. The European Union has been pleading for restoration of democracy by the king and renunciation of violence by the Maoists.

The king’s February roadmap is unlikely to ensure peace, democracy and economic wellbeing in the coming year without peace and reconciliation with the political parties. No lasting peace is possible without dealing with the Maoists. There is no military solution to the insurgency. After one year of royal rule and ten years of insurgency, as the International Crisis Group (ICG) suggests, the priority should be “peace process, not polls” that are boycotted by political parties or a general election “planned by a coterie of hard-line royalists.”

(Dr. Pudasaini has served as Representative of the United Nations Population Fund (UNFPA) in Sri Lanka and Yemen and as country director for Maldives. Please send your comments to [email protected] or [email protected])

(Editor’s Note: Nepalis, wherever they live, as well as friends of Nepal around the globe are requested to contribute their views/opinions/recollections etc. on issues concerning present day Nepal to the Guest Column of Nepalnews. Length of the article should not be more than 1,000 words and may be edited for the purpose of clarity and space. Relevant photos as well as photo of the author may also be sent along with the article. Please send your write-ups to [email protected])

The Rastriya Prajatantra Party (National Democratic Party) led by Home Minister Kamal Thapa is ahead of rest of the small parties that took part in the municipal polls on Wednesday.

People coming of City Hall after acquiring information on the vote counting, amidst tight securing, Thursday morning, Feb 09 06. nepalnews.com

According to the information provided by the Election Commission, out of the results announced for 17 municipalities, RPP (Thapa) candidates have been elected to the post of mayors in eight municipalities and deputy mayors in two municipalities. The only recognized party in the previous election, Nepal Sadbhavana Party has won to the post of mayor in one municipality and deputy mayor in two municipalities. All other elected were independent candidates.

In Lekhnath municipality, less than 3 percent of the voters cast their votes. Of the total 32,644 voters in the municipality, Hari Bahadur Harijan has been declared a winner for the post of Mayor after polling just 401 votes while his nearest rival Chandra Bahadur Ranabhat stood second by bagging 373 votes.

According to the EC, over 72 percent of the total voters cast their ballots in Gaur municipality, the hometown of Madhav Kumar Nepal, general secretary of CPN (UML), while some 35 percent of the total voters turned up in Biratnagar, the hometown of Giorija Prasad Koirala, president of Nepali Congress. Gaur had a total of 16,538 voters and Biragnagar had 95,686 voters.

Of the elected mayors, Dhruba Maharjan of Kirtipur municipality polled the highest votes (5,468) while Bidyadevi Rawal of Tikapur municipality received the lowest (284). Their rivals polled 1,893 and 105 respectively. Kirtipur had a total of 23,831 voters while the number of voters in Tikapur was nearly 24,000.

According to the EC, some 20 percent of the over 1.4 million voters cast their votes in the municipal polls held in 36 municipalities of the country on Wednesday.

Home Minister Kamal Thapa has said that the government has drawn the attention of India to the growing smuggling of explosives and ammunition from across the border and urged the Indian government to monitor the common, open border properly.

Addressing a press meet organised at his office on Wednesday, Thapa urged the Indian government to beef up security arrangements along the border, adding the haul of explosives that entered Nepal through Sunauli border on February 28 could have razed an entire city.

Thapa said that the “consignment” appeared as if coming right from the factory. “The consignment does not indicate it was procured from the open market. They could be from a factory.”

Security forces had seized an Indian truck loaded with 2500 kg of Gelatin, 475 kg of Neogel-90, 7500 meters of safety fuse, 397,000 pieces of detonators near the India-Nepal border.

Thapa also said that the Maoists who clashed with security forces in Ilam could have got their illegal supply of explosives from across the border.

Reacting to the New Delhi visit of some leaders of political parties, Thapa said that “it was unfortunate that the parties were going to New Delhi rather than paying heed to the call issued by the institution of monarchy. That does not bode well.”

He also lamented the way the alliance was trying to enter into a working relationship with the Maoists.

As a clear sign of weak economic situation of the country, the Ministry of Finance (MoF) has slashed the projected GDP growth rate for the fiscal year 2005-06 by one percent to 3.5 percent.

The half-yearly review bases this correction in projection on the overall state of the economy of the country, mobilisation of foreign resources, progress of budgetary policies and programmes and expenditure and implementations of projects.

Increase in the cost of petroleum products in the international market has led to an increment in the average price index by 7 percent in the first six months of the current fiscal year as compared to the 4.6 percent increment over the entire period of the previous year, according to reports.

Inflation however is expected to be maintained at 7 percent with effective implementation of Value Added Tax (VAT).

Deposit mobilisation, which witnessed a 4.2 percent increment in the fiscal year 2004-05, has gone up by 5.8 percent in the current year.

Increase in imports as compared to exports has inflated the trade deficit. Export has increased by 10.5 percent in the first six months of the current fiscal year, amounting to Rs 31.03 billion whereas imports increased by 18.6 percent, amounting to Rs 82.15 billion.

Foreign currency reserve has increased by 7.8 percent, mainly due to increased remittance.

In the first six months, contracts amounting to Rs 14.28 billion have been signed with donor agencies out of which Rs 12.35 billion has been in the shape of aid and Rs 1.92 billion as loans. During the same period last year, foreign resource contracts was worth Rs 23.12 billion.

In terms of development budget expenditure, Rs 40.27 billion has been spent which is a rise by 8.9 percent compared to the previous fiscal year. Current expenditure till mid-January 2006 was Rs 28.54 billion while capital expenditure stood at Rs 4.9 billion. Rs 4.24 billion has been spent for repayment of principle loans.

The revision came at a time when economists have warned that the economy might be bankrupt within a few months if the economic situation of the country remained the same.