Ram Sahaya Yadav elected as third Vice-President of Nepal

Ram Sahaya Yadav has been elected as the third Vice-President of Nepal. In the election held at the Lhotse Hall of Parliament building in New Baneshwor on Friday, Janata Samajbadi Party leader Yadav was elected as the Vice-President. He was elected as the Vice-President defeating Astha Laxmi Shakya of the CPN-UML and Mamata Jha of the Janata Samajbadi Party. Out of 52,628 weightage-based votes, Yadav secured 30, 328 votes while his closest contender Shakya garnered 16, 328 votes. Similarly, Jha obtained 2, 537 votes. Yadav was supported by ruling coalition parties—Nepali Congress, CPN (Maoist Center), CPN (Unified Socialist), Janata Samajbadi Party, Janamat Party and Rastriya Janamorcha Party. According to the Election Commission, out of 332 voters of federal Parliament and 550 voters of Province Assembly, 829 cast their votes. The weightage of a vote cast by a member of federal Parliament was equivalent to 79 whereas the weightage of a vote cast by a PA member was equivalent to 48. The Election Officer’s office said that 53 lawmakers were absent in the election. A total of 42 lawmakers of Rastriya Prajatantra Party and four of Nepal Workers and Peasants Party did not cast their votes. Two types of ballot papers were printed for the election. The ballot for the federal Parliament members was of red color while it was of green color for the Province Assembly members. The Vice-President shall be assigned to look after affairs in the absence of the President. The tenure of the Vice-President is five years. Parmananda Jha was elected as the first Vice-President of Nepal in 2008 while Nanda Bahadur Pun from the UCPN (Maoist) was elected as the second Vice- President of the country in November 2015. Who is Vice-President elect Ram Sahaya Yadav? Ram Sahaya Yadav was born on July 24, 1970. He started his political career from the Nepal Sadhbhawana Party. Yadav was elected as a member of the first Constituent Assembly in 2007. He became the General Secretary of the Federal Socialist Party formed after the unification of Madhesi Janadhikari Forum Nepal and Federal Socialist Party in 2015. Yadav, who was seriously injured during the Madhes Movement in 2015, was elected as a member of the House of Representatives from Bara-2 in 2017. He also became the General Secretary of the Samajbadi Party formed after the unification of Federal Socialist Forum Nepal and Naya Shakti Party in 2018. Yadav, who was appointed as the Minister for Forest and Environment in 2021, was re-elected as a member of the House of Representatives from Bara-2 in 2022.      

As CIAA becomes weak, corruption thrives

Corruption continues to thrive at all three levels of government, despite the anti-graft body’s claim of having a strong monitoring mechanism in place. Hardly any day goes by when there is no incident of corruption, mainly concerning civil servants taking a bribe, in the media. Senior journalist Hari Bahadur Thapa says news stories about bribery that comes in the media are usually minor ones, and that there are much larger corruption cases taking place in the shadows. Thapa suspects the Commission for the Investigation of Abuse of Authority (CIAA) is deliberately turning its attention away from big cases because of high-level political involvement. “The CIAA is failing to catch big fishes. It has abandoned the investigation of big scandals involving political leaders and focusing only on small cases,” he says. “This is because all the state mechanisms have been captured by the political parties.” After a long gap, the Special Court in Kathmandu last week slapped two former ministers—Badri Prasad Neupane and Tek Bahadur Gurung— with nine-year jail terms and Rs 12m fine. But it was a one-off case of politicians getting convicted of corruption in the country. In Nepal, even courts are known to delay the hearing of cases involving politicians or those people who have high-level political connections. A cursory look at the CIAA documents also shows where its focus lies when it comes to curbing and investigating corruption cases. People are registering more and more complaints with the CIAA.  A majority of complaints (4,459) received by the commission in the fiscal year in 2021/22 were in the form of written applications. Complaints were also recorded via postal service, e-mail, and directly to the CIAA website. Around half of the complaints (50.55percent), which also include those from previous fiscal years, are currently under investigation at the CIAA central office. Among the various regional offices of the anti-graft body, the highest number of complaints is being handled by the Bardibas office (8.68percent), while the Nepalgunj office (3.07percent) and Pokhara office (4.59 percent) have the lowest number of complaints, according to the report. Likewise, the Kathmandu head office of the CIAA has settled the highest number of complaints (9,509) compared to its branches. Among the offices outside of Kathmandu, the Butuwal office had the highest percentage of settled complaints (84.52 percent), while the Bardibas office had the highest number of settled complaints (1,196).  The Itahari office of the CIAA settled the fewest number of complaints in terms of percentage (53.36 percent), while the Nepalgunj office had the fewest number of settled complaints (524). The report also showed that approximately half of the complaints filed at both the head office and regional offices of the CIAA were against the local governments and their agencies (47.08 percent). About 40.96percent of the complaints were against agencies under the federal government. In terms of provinces, the highest number of complaints was received against the offices in Bagmati, followed by Madhes, Lumbini, and Koshi. Number of corruption complaints against provincial government offices in Gandaki, Karnali, and Sudurpashchim was comparatively fewer. In terms of agencies under provincial and local governments, the highest number of complaints has been filed in Madhes (28.10 percent), while the lowest was in Gandaki (8.47 percent). Lumbini accounted for 15 percent, Sudurpashchim 13.73 percent, and Koshi 12.79 percent of the total number of complaints filed. Bagmati and Karnali accounted for 11.78 percent and 10 percent respectively. The report also showed that complaints against sectors such as federal affairs, education, health, land administration, forest and environment, physical infrastructure, and home affairs were comparatively higher. A significant number of complaints were related to fake academic certificates and amassing of illegal properties. In terms of sector-wise distribution, complaints in federal affairs (including local government) were the highest (33.14 percent), followed by education (15.31 percent); land administration (7.71 percent), forest and environment (4.62 percent); health and population (3.99 percent); physical infrastructure and transport (3.88 percent); home administration (3.75 percent); tourism, industry and commerce (3.23 percent); energy, water resources and irrigation (3.09 percent); water supply and urban development (2.98 percent); finance and revenue (1.96 percent); agriculture and livestock (1.88 percent); and communication and information technology (0.99 percent). After preliminary investigation, the CIAA head office settled 9,509 (77.31 percent) of the 12,300 complaints filed in 2021/22, said the report. The commission’s branch offices settled 7,660 (63.67 percent) out of 12,031 complaints. In total, the CIAA settled 17,169 (70.56 percent) out of 24,331 complaints recorded during the fiscal year 2021/22. The remaining 7,162 complaints have been carried over for 2022/23. In 2021/22, following a comprehensive investigation, the CIAA decided to register charge sheets in 130 complaints. Including one charge sheet decided in 2020/21, the commission filed a total of 131 charge sheets at the Special Court in 2021/22. Additionally, the anti-graft commission issued 80 suggestions and 17 written instructions, while 637 complaints are in the notice service process. It also took 41 other decisions. In 2021/22, the CIAA held 79 meetings and made 975 decisions related to filing charge-sheets, appeals, reviews, dispositions, and pending of investigation, among other matters. Of the 131 cases charge-sheeted in 2021/22, 35 were related to causing damage to public property, 34 to seeking illegal benefits, and 32 to corruption. Seven cases were related to illegal amassing of properties, six to fake academic certificates, five to revenue leakage, and 12 to other offenses. In 2021/22, the CIAA also filed appeals at the Supreme Court against decisions of the Special Court in 57 cases. A total of 637 complaints — 42 against illegal amassing of properties and 595 others — filed in 2021/22 have been kept in disposition as per Clause 19 (12) of CIAA Act, 1991, and Rule 10 CIAA Regulations, 2002. The performance of the Special Court, through which cases related to corruption are settled, is dismal. For instance in the fiscal year 2078/79, altogether 792 cases were filed, but the court delivered on only 339 of them. Most of the cases filed at the Special Court are related to illegal earning, policy corruption, fake certificate, bribery, and money laundering. Nepal was ranked in the 110th position out of 180 countries in the corruption perception index report of Transparency International in 2022. The country had ranked at 117th spot in 2021. But despite the year-by-year improvement in corruption perception, observers say it does not take account of irregularities that are happening at the local level. They say corruption and irregularities are thriving at provincial and local levels, and there are no reliable mechanisms to check them. This is true particularly in development projects, which have boomed in provinces after Nepal adopted federalism. According to the National Vigilance Center (NVC), corruption has flourished mainly in big development projects. In one of its reports, the NVC states that the quality of big infrastructure projects is seriously compromised due to nexus between politicians and contractors. To check the quality of infrastructure projects, NVC has set up laboratories but it falls short of sufficient human and other resources. Padmini Pradhananga, president of Transparency International Nepal, says anti-graft agencies in Nepal are not paying attention to the corruption happening at the local level. “We are receiving complaints that corruption and irregularities are happening in the health, education and construction sectors,” says. “There are also reports of the CIAA keeping big corruption scandals on hold and investigating only small cases.”

Revenue collection takes a blow due to macroeconomic headwinds

After the import control measures led to a big slump in revenue collection, the government first lifted the over seven-month ban on the imports of automobiles, liquors, and expensive mobile sets effective from mid-December last year. Then, on January 20, the Nepal Rastra Bank (NRB) annulled the nearly year-long provision of cash margin of up to 100 percent in the banks to open letters of credit (LCs) for the imports of around 300 goods. However, the decisions of the government and NRB to roll back their previous steps, which were introduced a year ago to tackle the worsening problems in the external sector of the economy have not been fruitful for the government in terms of meeting the revenue targets. According to the Financial Comptroller General Office (FCGO), the government’s revenue collection continues to remain dismal totaling Rs 584.29bn as of mid-March, 2023 compared to Rs 688.38bn in the same period of the last fiscal year 2021/22. The revenue collected so far is not enough even to cover the recurrent expenditure of the government which stands at Rs 610.21bn as of mid-March, 2023. The Department of Customs (DoC) and Inland Revenue Department (IRD), the major agencies of the country's tax regime, have reported dismal revenue figures as of March 15 of the current fiscal year. According to DoC, it collected Rs 250bn, which is 58 percent of the target of Rs 433bn. “The impact of the policy reversal on import control has not been reflected in the customs revenue,” a senior DoC official said.  The country receives nearly half of its revenue through taxing imported goods. Import taxes on vehicles are among the largest sources of revenue. But even after the government lifted the import ban, automobile dealers have not rushed to import the vehicles.  In fact,  the automobile dealers have not yet cleared around 2,800 four-wheelers parked at Birgunj and other customs yards of the country, according to the customs officials. The vehicles were imported in recent months based on LCs opened before the import restrictions were imposed in April last year. “We have long been asking the auto dealers to get them cleared but they have refused to do so, complaining about the non-availability of loans in the automobile sector,” the official said. In FY 2021/22, the government collected revenue of Rs 66.30bn from the imports of four and two-wheelers,  DoC data shows. The story is the same with the inland revenue collection. According to IRD,  the revenue collection as of mid-March of this fiscal year stood at 79.68 percent of the target. A total of Rs 281.99bn has been collected by IRD as of mid-March against the target of Rs 353.91bn. The department had raised Rs 284.88bn in revenue during the same period of the last fiscal year. In late January, the government decided to reduce administrative expenditure by 20 percent. Subsequently, the government trimmed its expenditure plan (budget) for the current fiscal year 2022/23 by 13.59 percent through the mid-term review of the budget. This translates to a reduction of a staggering Rs 243.83bn in the budget for FY 2022/23. The revised budget now amounts to Rs 1,549.99bn. On May 29,  former finance minister Janardan Sharma had presented a budget of Rs 1,793.83bn with an ambitious 8 percent economic growth target. But during the first quarter of the current fiscal year, the economy grew by just 0.8 percent. Industrialists and businesspersons say the demand for goods and services has slumped as the economy is facing several problems currently. According to revenue administration officials, meeting the revenue targets is difficult because of the macroeconomic headwinds.

World Cup calling?

Nepal reached the ICC Men’s Cricket World Cup Qualifiers after defeating the UAE by nine runs. The game was decided by Duckworth-Lewis (DL) method as the second innings had to be reduced to 44 overs due to bad light.  Nepal scored 269 runs by losing six wickets in their final match of the triangular series of the World Cup League 2 played at the TU cricket ground on Thursday. 

For Nepal, Kushal Bhurtel played a half-century of 50 runs in 35 balls with three fours and four sixes. Similarly, Bhim Sarki got out after playing a magnificent knock of 67 runs in 76 balls with nine fours while Aarif Sheikh made 52 runs off 62 balls with two fours.

Gulshan Jha remained unbeaten on 50 runs while Dipendra Singh Airee scored not out 10 runs. Junaid Siddiqui took the most wickets (three) for UAE,  while Ayan Khan and Zahoor Khan got two and one, respectively. UAE decided to bat first after winning the toss and made a total of 310 runs by losing six wickets.

Asif Khan, who came to the crease at number six for UAE, scored an aggressive century with four fours and 11 sixes in 41 balls and remained not out. Vriitya Aravind, who shared 135 runs partnership with Khan for the sixth wicket, played an innings of 94 runs off 138 balls with eight fours and two sixes.

UAE skipper Muhammad Wasim returned to the pavilion after making 63 runs off 49 balls with two fours and six sixes.  For Nepal, Airee bowled economically by giving 19 runs in eight overs. He took two wickets with two maidens. On their part, Lalit Rajvanshi, Sompal Kami and Sandeep Lamichhane took one wicket each. With this win, Nepal climbed to the third position of the league and has secured a place in the global qualifiers for the World Cup that will kick off in Zimbabwe on June 18.

Scotland have already become League 2 champions while Oman have finished second. Both teams will join Nepal in the global qualifier.  It will feature ten teams in total, the bottom five teams from the World Cup Super League, the top three teams from the World Cup League 2, and the top two teams from the 2023 World Cup Qualifier Play-off. 

It is certain that Nepal will play against Zimbabwe, the Netherlands, Oman and Scotland in the qualifier, while the remaining five teams are yet to be decided. Top two teams from Zimbabwe qualifiers will play the ICC World Cup that is set to take place in India, in October 2023.