Kathmandu, July 2, 2007

The Cabinet today decided to deal with the Tarai developments in a firm manner. Orders to this effect have been passed on to Home Minister Krishna Prasad Sitaula.

The Cabinet is also scheduled to endorse the common annual programme and policy of the government in tomorrow’s cabinet meeting following “clearance of the same from eight-party mechanism.” The same could not get through today following differences between ministers representing various parties.

The draft of the programme and policy drawn up by Finance Minister Dr Ram Sharan Mahat highlighting reconstruction and economic as well as administrative reforms was introduced in the Cabinet today to be distributed among ministers representing coalition partners. “The content of the programme and policy will be passed only tomorrow following eight-party concurrence,” said Minister of State for General Administration Ram Chandra Yadav.

Other highlights of the policy and programme are restructuring of the state as decided by the commission that will be formed. It will also indicate the nature of the budget that will be presented later. However, the issue of naming envoys to 14 countries has been deferred until Maoist and other party leaders reach an agreement on it.

CPN-M supremo Prachanda had been demanding that the envoy to Washington, New Delhi, Beijing or London should be from his party. However, in a decision made earlier, the envoy to China will be from the CPN-UML, while those to the other three capitals will be from the NC.

Summons to Bhattarai, bail for Pradhan

Kathmandu, July 2, 2007

The Special Court today issued summons to Nepal Rastra Bank’s suspended governor, Bijaynath Bhattarai, to record his statement on alleged involvement in cancelling the contract with an American company that caused a loss of Rs 24.5 million to the bank.

A three-member bench of judges Bhoopdhoj Adhikari, Kimal Nath Sharma and Cholendra SJB Rana asked Bhattarai to present himself before the court within 15 days. The bench also granted bail to suspended executive director of the bank, Surendra Man Pradhan, for Rs 50,000 following the hearing today.

Earlier, lawyers Bharat Raj Upreti, Rajit Bhakta Pradhananga, Shiva Rijal, Laba Mainali and Krishna Prasad Sapkota pleaded for the defendants before the bench and demanded the case be dismissed.

The corruption case was filed by the Commission for the Investigation of Abuse of Authority on June 28 holding the duo responsible for the loss of Rs 24.5 million incurred by the NRB while terminating contract with the IEF Inc Lloyd Hill Oakton of the USA in association with KPMG of Sri Lanka last year.

The CIAA had also claimed that though suspended governor had terminated the agreement the NRB had failed to claim Rs 19.5 million from the KPMG.