Finance Committee directs government to take action against Sebon and Nepse officials

 Concluding that the officials of Nepal Securities Board (Sebon) and Nepal Stock Exchange (Nepse) misused their posts and took unfair advantage, the Finance Committee -- under the Federal Parliament -- today directed the government to investigate into their alleged involvement in the 'golden share' case of Sarbottam Cement, and  take action against them.

The parliamentary committee also directed the ministry to take action regarding the case and furnish details.

Asking the ministry to prepare a draft of share market policy, legal, structural, managerial, and technical aspects reform, the committee also suggested promotion of transparency, morale, good conduct, responsibility and accountability in the share market.

Answering the parliamentarians questions, finance minister Janardan Sharma informed them of formation of committee to investigate into the case. "The ministry’s attention has been seriously drawn in the transaction of shares of Sarbottam Cement," he said, adding that the committee will recommend legal action, if any ill-intention was found.

The share market has become an alternative to the investors as economic activities have been halted due to Covid-19. The share market has attracted around 3.5 million investors as an alternative investment avenue.

The committee’s chair Krishna Prasad Dahal also asked the ministry to ensure the healthy, fair and transparent transactions in the share market. "The government should remain alert to the possibility of irregularities in the share market," he added.

The parliamentarians were of the view that the connection of Sebon and Nepse officials in share transactions is a moral issue, though the law has not barred the relatives of the officials to trade in the share market.

On the occasion, former finance minister Surendra Prasad Pandey said that the share market is yet to gain public trust. Likewise, lawmaker Ram Kumari Jhankri insisted on investigation of alleged involvement of higher officials of Sebon and Nepse in share trading.

Sebon is the regulatory body of the share market and Nepse is the frontline regulator. But the chair of Sebon Bhishma Dhungana was reportedly found involved in influencing the share market as his daughter purchased 10,000 units of Sarbottam Cement's share, whereas Nepse chief executive officer Chandra Singh Saud had also bought shares of Sarbottam Cement in the name of his wife. The Sarbottam Cement is issuing the public share through book-building.

The finance ministry had sought clarification from the Sebon and Nepse on July 28. The Financial Sector Management and Corporation Coordination Division of the finance ministry had asked Dhungana and Saud to send their clarification within three days. They have also submitted the clarification within three days.

Government extends long-haul transportation, flights operation schedule

 The government has continued the suspension of the operation of long-distance vehicles and domestic flights till September 16.

A meeting of the Council of Ministers held today decided to extend the suspension from earlier deadline of August 17. Earlier, the government has vowed to resume long-route transportation and domestic flight services from August 17 due to a sharp increase in coronavirus infections. 

Likewise, the cabinet has also decided to continue closure of schools and all other educational institutions across the country until further notice. “But the operation of international flights is resuming tomorrow, a schedule has also been released,” according to a cabinet minister. 

In the meeting, some ministers recommended to increase the number of Nepalis to from current 500 Nepalis per day. “The number has to be increased in case a particular company takes responsibility of sending Nepalis back home bearing all their costs of taking PCR tests, hotel quarantine facility among others,” they recommended.

The cabinet has also decided to grant labour permission to those seeking to go to overseas in foreign employment.

Government, World Bank launch Youth Employment and Transformation Initiative Project

The ‘Youth Employment Transformation Initiative’ project has been jointly launched by minister of Labour, Employment and Social Security Rameshwor Raya Yadav and World Bank country director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos.
Financed by the World Bank to promote domestic employment, the project will enable poor and vulnerable youth gain access to employment, skills development and capacity building opportunities, according to a press note issued today by the multilateral development partner. Aligned with the Prime Minister Employment Programme, the $120 million project will be implemented over the next four years with a focus on improving employment services and labour market outcomes, especially for youth.
“With the onset of Covid-19 and the subsequent contraction of the global job market, Nepal’s labour market is also affected with a huge number of job losses. “In this context, result-driven implementation of the project at all three levels of the government is of critical importance,” minister of Labour, Employment and Social Security Yadav said, adding that the project plays a crucial role to expand the employment opportunities in the domestic labour market and to set up an automated system of Labour Information Bank and upgrade the Employment Management Information System by consolidating basic labour market information such as profile of the unemployed persons including knowledge, skills, experience and the potential sector for employment along with the demand and supply aspects of the labor market.
“In addition to the longer term goals of the project, as part of the World Bank’s Covid-19 response, the project funding is being frontloaded this year to support over 75,000 of the most vulnerable unemployed youth at the local level to earn 100 days of wages each through the creation of temporary employment opportunities in the maintenance and upgrading of public infrastructure,” Hadad-Zervos said, adding that working with the government, development partners and the private sector, the World Bank will seek to contribute to a long thread of engagements that align to make a difference in the lives of the most vulnerable people.
The project agreement was signed in November 2019 by the government (Finance Ministry) and the World Bank. Of the $120 million credit, about 90 per cent is allocated to the local levels to create jobs in the maintenance and upgrading of public infrastructure and public services for 100,000 unemployed youth, 60 per cent of whom will be women as per the project’s priority to inclusion. The project will support 753 Employment Service Centers at the local levels to strengthen the workforce and to provide services in registration, profiling, referral, temporary work placement and on-the-job training.

Hoteliers to pay staff from Rs 4000 to Rs 10,000 wages

The hotel and hospitality sector staff will get their minimum wages – from Rs 4,000 to Rs 10,000 depending on the grading of hotel – for the lockdown period.
Hotel Association of Nepal (HAN) and three major trade unions – active in tourism and hospitality sector – sealed the deal ending a longstanding row over the workers’ salary for the lockdown period.
Since the government imposed lockdown on March 24, the hotels have been closed. AS the staff have not been working, the hoteliers have been saying that they will get paid some 12 per cent only. But the HAN today confirmed that the agreement – applicable for the period of April 13 to December 31 by considering that the situation caused by the pandemic coronavirus infection will last till 2020 – the staff will get paid from Rs 4,000 to 10,000 per month depending on the grading of the hotels, from star deluxe hotels to non-start hotels.
The staff working in the hotels having 200 plus rooms will get Rs 10,000 per month, whereas the workers of five-star hotels with less than 200 rooms will collect Rs 9,000 per month. Likewise, the staff of four-star hotels with 100 plus rooms would be given Rs 8,455 per month and Rs 8,000 to those workers employed in the four-star hotels with less than 100 rooms. “The staff of three-star hotels and resorts will get Rs 5,000 per month,” according to a press note issued by the HAN that has organised a press meet in Kathmandu today.

ADB approves $200 million concessional loan

The Asian Development Bank (ADB) has approved a $200 million concessional loan to improve power supply and distribution systems in Nepal.
Nepal has made significant progress in electricity supply after years of chronic power shortages. However, its power transmission and distribution systems need further strengthening to increase network capacity, improve quality and reliability, and remove delays between generation hubs and load centers, according to a press note issued by the multinational development partner.
The project will finance, among others, the reinforcement and modernisation of the power supply system in Kathmandu Valley, Bharatpur metropolitan area of Chitwan district in Bagmati Province and Pokhara of Kaski district in Gandaki Province, where supply interruptions are frequent and prolonged, the press note reads, adding that the project also aims to support Province 2, where the quality of electricity supply is poor and about 20 per cent of households are still without access to the national grid.
“The project will help sustain Nepal’s improved electricity supply momentum over the past two years,” ADB Principal Energy Specialist Jiwan Acharya said, adding that it will facilitate meeting future demand from commercial and industrial activities as well as from communities, particularly women, who can now benefit from electricity-based enterprises and focus on productive economic and social activities. “It is also very timely because the project will create employment opportunities for skilled and unskilled labor during the construction phase as the country adopts measures to mitigate the socioeconomic impact of the coronavirus disease (Covid-19) pandemic.”
Complementing ADB’s loan, the Government of Norway is providing a $35 million cofinancing grant for the installation and upgrading of power distribution networks in Province 2 and various substations to evacuate hydropower in the country. In addition, it is providing a $5 million technical assistance grant for capacity development of the Nepal Electricity Authority (NEA) to ensure that gender equality and social inclusion are strengthened, and new technologies are used to make electricity infrastructure resilient.
The project is aligned with the South Asia Subregional Economic Cooperation (SASEC) programme on intraregional power trade through cross-border power exchange. The upgrading of substations in Khimti, Barhabise, and Lapsiphedi to 400 kilovolts (Kv) will facilitate cross-border power exchange with India.
ADB and other development partners have been engaged in Nepal’s power system reform efforts, including the approval of the Nepal Electricity Regulatory Commission Act of 2017, which created the Electricity Regulatory Commission as an independent regulatory body with respect to tariff-setting and consumer protection.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 from the region.