Government, loan-sharking victims ink five-point deal, for the second time

The government and representatives of loan-sharking victims signed a five-point deal today evening - on April Fools Day - after the government pledged to form a high-level commission to investigate into the problems of predatory lending victims. As the government has no institutional memory, this is the second time, it reached the agreement with victims in six months. Hopefully this time the government will walk the talk, and the victims will not be fooled, again.

The next cabinet meeting will form a high-powered probe commission and then the agitating committee will call off its protest programmes, according to the agreement that further reads that the government will also expedite the process to amend the law to criminalise unscrupulous lending.

The government will also form a district-level coordination-facilitation committee under the coordination of chief district officers (CDOs) to address the complaints of loan-sharking, the another point of the agreement reads, adding that the committees will have police personnel, district government attorneys, heads of land revenue and survey offices, representatives of banks and financial institutions and representatives of loan-sharking victims as members. “The committees will assist and coordinate the works of the commission, collect complaints and grievances from victims, assist in gathering evidence and facilitate free legal aid and conduct awareness activities.”

Though Prime Minister Pushpa Kamal Dahal ‘Prachanda’ today morning pledged to set up a high-level probe commission to resolve the issues of loan shark victims, the victims are not convinced as most of the loan sharks are affiliated to the political parties.

Talking to victims at his official residence in Baluwatar today morning, the Prime Minister tried to assure the victims that the government is working on amendment of the law that provides a long-term solution to the predatory lending issues. “The government is committed to addressing the demands of victims of illegal money lending,” he added. “The government has also decided to amend the National Criminal Procedure (Code) Act to criminalise illegal money lending.”

The Prime Minister informed the victims that he had instructed the Home Ministry to address the issue. Home Minister Narayan Kaji Shrestha, who assumed his office yesterday, has also reiterated that the ministry is seriously concerned about resolving the problem.

Taking charge of the ministry yesterday, home minister Shrestha approved a file to form a high-level probe panel to solve the problems of usury victims. He has given the formation of a high-level inquiry commission the go-ahead to solve the problems of loan shark victims in accordance with the Commissions of Inquiry Act, 1969.

On Tuesday, the government has also formed a four-member talks-team led by the joint secretary at the Home Ministry Rudra Devi Sharma to initiate talks with the victims. Home Ministry undersecretary Dil Kumar Tamang, undersecretary at the Office of Prime Minister and Council of Ministers Uma Kanta Adhikari, and undersecretary at the Ministry of Law, Justice and Parliamentary Affairs Jang Bahadur Dangi are members of the talks-team.

Loan shark victims, who hail from various districts of Tarai Madhesh gathered in Mahottari of Bardibas and walked to Kathmandu to draw attention to their plight. They had arrived in the Capital on Sunday after walking for 11 days on foot. They had travelled to Kathmandu in September too. But the problem has not been solved, even after signing five-point agreement then, and they are forced to walk to Federal capital again to pressurise the government to get the justice.

The victims have been protesting with 9-point demands, including the formation of a high-level commission of inquiry, scrapping personal mortgaging contracts locally known as ‘Tamasuk’ system, making laws in favor of usury victims, suspending ongoing arrest warrants based on Tamsuk, investigating property of usurious moneylenders and returning the property captured illegally. Among other demands, the victims have requested the government to resolve their pending cases in court and provide them loans at lower interest rates, bring laws against unscrupulous lending, as they are still fearing that their land will be auctioned and they will be arrested before the government initiates any action.

The law
Section-3, sub-section-2 of the Commissions of Inquiry Act, 1969 provides that if it is necessary to form a commission to investigate a matter of public importance, the government of Nepal or the provincial governments can form a commission of inquiry consisting of one or more members. Similarly, according to Sub-section 2 of Section 3 of this Act, such commissions shall be chaired by a judge appointed by the Government of Nepal in the case where there is only a judge or other persons as well. The judicial council should be consulted while forming such a commission. This commission has the power to present a person before the commission and take a statement, to order a person to submit any document, to hear evidence and to extract any document or its copy from any government or public office or court as per the prevailing law.