KATHMANDU, JANUARY 31

The private sector has slammed the allegations of corruption levelled against cement manufacturers.

Issuing a joint statement today, the three umbrella organisations of the private sector - Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce - have said the corruption charge has despaired the entire sector.

The Commission for the Investigation of Abuse of Authority, on January 26, filed a corruption case against 18 persons, including Director General of the Department of Mines and Geology Ram Prasad Ghimire and directors of nine companies for their alleged involvement in corruption.

The CIAA claimed that nine companies - Sarbottam Cement Ltd, Siddharth Minerals Pvt Ltd, Maruti Cement Ltd, Annapurna Quarries Pvt Ltd, Udaypur Minerals Tech Pvt Ltd, United Cement Pvt Ltd, Sonapur Minerals and Oil Ltd, Kanchan Quarries Pvt Ltd, and Dolomite Limestone Industries Pvt Ltd - excavated more than the permitted quantity of limestones and caused a loss to the deposit of minerals. It said the companies adversely impacted the environment.

The CIAA accused Siddhartha Minerals Ltd of causing a loss to the government to the tune of Rs 4.9 million. Maruti Cement Ltd has been accused of embezzling Rs two million. Other companies face the allegation of embezzling between Rs 10 million and 160 million.

Among the individuals named by the CIAA was Pashupati Murarka, the former president of FNCCI and the director of Siddharth Minerals Pvt Ltd.

The joint statement today has stated that the latest allegations are a major blow to the private sector that is struggling to recover from the devastation caused by the coronavirus pandemic.

The demand for cement surged following the earthquakes of 2015 as the country geared up for rebuilding. 'As opposed to imports of cement clinker worth Rs 11.70 billion in fiscal year 2015-16, Rs 26.10 billion in fiscal 2016-17 and Rs 31.70 billion, the country has now become self-reliant in cement,' the statement reads.

'Against this backdrop, it is unfortunate that the cement industry that has the potential for exports is being reprimanded.'

The umbrella organisations have said that the industries were paying the royalty as prescribed by the government and that there was no way the industrialists would be aware of internal studies conducted by the Department of Mines and Geology.

'Hence, the private sector is stunned the CIAA decided to file corruption case against the industrialists at the Supreme Court without even holding a discussion with them.'

They have warned that such activities could not only demotivate the private sector, but also affect investment, job creation, revenue and overall development of the country.

It is to be noted that on Friday, Nepal Cement Producers Association, a joint body of cement producers, had also expressed reservations against the case filed by the commission to probe the abuse of authority against cement manufacturers.

In a statement, the union had claimed that the authorities had registered the case to discourage the cement and clinker sector from moving towards self-reliance.

A version of this article appears in the print on February 1, 2022, of The Himalayan Times.