F OCHA Nepal Situation Overview Is sue No. 31, covering the period 12 July - 26 July 2008 Kathmandu, 27 July 2008 Highlights: • Nepal’s first President and Vice President take office; President calls political party leaders to form Government • Shortage of essential supplies due to indefinite strike in Far-West Region • Floods inundating villages and displacing households in Eastern Region • Violence against civilians in Eastern Region • Nepal faces risk of stagflation, characterised by low economic growth, high unemployment and rising prices. • UNMIN extended for another six months CONTEXT in many parts of the country after he took his oath in Hindi language. In Dhangadhi, Dang, Nepalgunj, Mahendranagar, Political situation Doti, Dadeldhura protestors burnt down the VP’s effigy. Meanwhile, PM Koirala officially handed over his resignation The protracted political struggle continued between the largest to President Yadav. Since 24 July, the President held four parties, Communist Party of Nepal-Maoists (CPN-M), consultations with leading parties on the new formation of the Nepali Congress (NC), CPN-Unified Marxist Leninist (UML) government. Former Speaker and UML leader Subash party and Madhesi Janadhikar Forum (MJF), as they failed to Nemwang was appointed as the CA Chairman unopposed. reach consensus on the candidates for the post of President. On Fourteen political parties including Nepali Congress (NC) and 13 July, the Constituent Assembly (CA) passed the Fifth Madhesi Janadhikar Forum (MJF) supported Nemwang for the Amendment Bill of the Interim Constitution making way to post. elect the President, Vice President (VP) and Chairperson through a simple majority if the parties failed to reach a The President asked the Maoist leaders to take immediate steps consensus on the candidates. As the largest elected party, the to form a government of national consensus. However, CPN-M CPN-M held intensive consultations with the three other main said there were three conditions that would allow consensus to parties, but NC and UML remained firm over their decision to be formed: the termination of the NC-UML-MJF alliance; the nominate their own leaders Prime Minister Girija Prasad Common Minimum Program (CMP) of the 25 political parties Koirala and former UML General Secretary Madhav Nepal. must feature the majority agenda of the Maoists; and finally, all UML was close to forging an alliance with CPN-M but fell out political parties should give a written commitment to allow the as the latter refused to accept Nepal as the presidential next government to function without any hindrances for at nominee and instead asked UML to recommend a female least two years. UML and NC criticised the Maoist for candidate or someone who could represent the marginalized prolonging the political deadlock by floating preconditions to community for the post of President to make the government lead the government. The Maoists, in turn, have been critical of inclusive. The UML had also asked for one of the “power the three party alliance which appears to be against the spirit of ministries” as part of the deal which CPN-M refused. On 16 the Seven-Party Alliance. The Madhesi parties recently told the July, the Maoists declared their own nominee, veteran President that there was an option of the simple majority republican Ram Raja Prasad Singh, for the President. After the provision in the CA if efforts to form a consensus government parties failed to reach consensus, the CA announced elections failed. Terai Madhesh Democratic Party (TMDP) leaders also for President and Vice-President on 19 July. UML and NC also stressed the need for consensus. MJF Chairman Upendra declared their nominees, all of Madhesi origin. claimed that his party should be given the chance to lead the future government if parties fail to form a consensus MJF candidate Parmananda Jha was elected as the country's government. first VP beating his nearest rival Maoist nominee Shanta Shrestha. None of the presidential candidates secured the On July 15, the CA passed a special bill authorising the necessary majority of 298 votes, therefore the CA held a run-off government to incur advance expenditures totalling NPR 73.54 on 21 July. The NC General Secretary Dr. Ram Baran Yadav billion in the new fiscal year beginning from July 16 in absence was elected as the country’s first President in the run-off voting of the Fiscal Year Budget. participated by 590 Members of the Constituent Assembly (CA) and defeated Maoist candidate 72-year old Singh with 308 On 23 July, the Security Council voted unanimously to extend votes against 282. Rastriya Prajatantra Party-Nepal (RPP-N), the United Mission in Nepal (UNMIN) for a further six months which has four seats in the CA, boycotted the election. as a special political mission ending 23 January 2009 to allow Although MJF had earlier announced its support for Singh, it for the completion of its monitoring and management of arms eventually voted for Yadav justifying that a strong presidential and personnel of the Nepal Army and the former Maoist candidate from another party was needed to challenge the combatants. Maoists in the government. Other small parties including National People’s Front (NPF), Chure Bhawar Ekata Samaj Safety and security (one vote), CPN-United and Nepal Workers and Peasants Party (NWPP) also voted in favour of the NC candidate. From 12-14 July, about 25 ‘Riot Control Team Personnel’ of Nepal Police in Nepalgunj took eight senior officers hostage in On 22 July, the Maoist leaders declared that their party would protest of rampant corruption, misuse of resources and not form the new government. On 23 July, President Yadav providing low quality food to the rank and file. More than 200 and VP Jha took oath of their offices. The VP sparked protests police were mobilized to release the hostages. On 13 July, the Nepal Army dispatched its Ranger Battalion from Kathmandu OCHA Nepal Situation Overview, Issue No. 31/27 July 2008 1 to help the Nepal Police, but the standoff ended peacefully after involved in various violent activities. On 13 July, District the agitating police surrendered on the condition that they treasurer of Maoist-affiliated Kirant Mukti Morcha (KMM) receive amnesty. An emergency cabinet meeting on 13 July assaulted the Chairman of the Community Forest Department ordered the Home Ministry to take stern measures to maintain in Morang district for not providing timber as per their discipline in all security bodies. Around 25 police personnel demand. On 15 July, Maoists captured the land belonging to a were arrested between 13 to 17 July as a result of the incident. civilian at Bhawani Kalabazzar VDC, Siraha district. Cadres of ‘Young Youth’ of the Madhesi Janaadhikar Forum (MJF) Strikes continue to have serious repercussions throughout the vandalized the office of a local newspaper Kripa at Sripur of Far-West Region (FWR). Strikes called from Kailali District Rautahat on 16 July. On 18 July, Maoist cadres threatened to since 13 July halted transportation in all Districts of the FWR kill two persons of Namadi VDC in Ramechhap district for to date. From 13-24 July, the Kailali Chamber of Commerce filing a case against them. The Kirant Janabadi Workers’ Party and Industry (KCCI) organised a strike to protest the syndicate (KJWP) cadres have been intensifying violent activities in the system. From 20-26 July the Bus Association imposed a strike Eastern Region. They have been asking donations from local until its demands for compensation of a damaged bus during businessmen, VDC secretaries and NGO workers, and warning the KCCI protests were met. The bus and truck operators that nobody can work in the Kirant area without their regulating the frequency of their service are considered a permission. Local mule owners are being taxed for transporting syndicate system. Bus fares are regulated by the Government of good from Udayapur to Khotang. Nepal (GoN). However, in practice the bus association imposes their own fare, especially in the hilly districts and truckers are Reach of the State often charging more than the market price. The syndicate members physically threatened the independent plying of Frustration among government employees is growing due to trucks and buses. The existing legal provision is ineffective to constant attacks and threats mostly in the Eastern Region. On control the syndicate system, which was abolished by the 12 July in Bhojpur, KJWP cadres torched all official documents Government in 2001. Nevertheless, it is practiced in various of Bhaisi Pankha VDC. On the same day in Khotang district, forms through the creation of committees and associations that KJWP cadres destroyed an under-construction repeater tower protest against the syndicate system. On 9 July, local of the Nepal Telecom situated at Hammapokhari of Kahule businessmen in Dhangadhi of Kailali District, staged a sit-in- VDC for not taking permission from their party for the work. protest at the District Administration Office (DAO), urging an KJWP has intensified their activities in southern VDCs end to the syndicate practiced by the Seti-Mahakali Truck adjoining Okhaldhunga, Udayapur and Bhojpur districts. Their Operators Association (SMTOA) and the Seti-Mahakali Bus prime targets are government infrastructure and employees. Entrepreneurs Association (SMBEA). The Federation of On 16 July, an unidentified group abducted two staff of the Nepalese Commerce and Industry (FNCCI) central Chairman Division for Water Induce Disaster Prevention Office from and Vice Chairman, among others, joined the protest and since Fulbariya VDC of Dhanusha District. The local government 13 July, they organised an indefinite strike. Although KCCI officials in Saptari continue to protest against the alleged ended the strike on 24 July, the SMBEA continued its strike killing of District Education Officer (DEO) Mohammad Hasrat from 20-26 July demanding the government to provide Ansari at the hands of the YCL cadres on 12 July.