Ncell announces ‘Facebook Free’

Ncell has announced a scheme entitled Facebook Free which allows its customers to use most of the features of the popular social networking site without charge.

The privately owned telecommunication service provider said all prepaid and postpaid customers would be able to post their status, upload photos, read other people’s updates, like, share and post comments without any data charge by using Android apps. 

After Facebook Free is opened, a ‘Go to Free’ button will appear on the top right corner of the Facebook page by default, and Ncell customers will be able to browse the free version of Facebook by clicking it.

“I am delighted to unveil Facebook Free as part of our larger vision—‘Internet for All’, which aims at enhancing access to internet through affordable and innovative products,” said Simon Perkins, managing director of Ncell, after jointly unveiling Facebook Free with Anna Nygren, chief representative and head of Growth Partnerships for Asia Pacific region at Facebook. 

“Social media are catalysts of internet adoption, and platforms like Facebook have been enabling youth and families of migrant workers to share every moment and stay connected with their loved ones.” 

“We are happy for the partnership with Ncell and bringing in the Facebook Free initiative to Ncell customers. Our hope is that initiatives like this will bring extra connectivity to Nepal,” said Nygren, speaking on the occasion. According to Facebook, more than 8 million people from Nepal are currently connected socially through Facebook.

Facebook Free will come into effect on Wednesday and remain in place for 90 days. The offer is globally configured and synced with Facebook. It does not require any activation process for customers to enjoy features under the offer.

Nepal government has won a case against Axiata Group, the parent company of Ncell mobile telecommunications company, in its dispute over the determination of capital gains tax (CGT) levied on the company during its acquisition of Ncell in 2016.

On May 20, 2019, the Axiata Group filed a case at the International Centre for Settlement of Investment Disputes (ICSID), an international investment dispute settlement body established by the World Bank, claiming damages worth $420 million (Rs55.54 billion), citing breach of the bilateral agreement, injustice and unjustified taxes levied on the company, justice for which, the company claimed, was also not given.

Besides claims of damages, as much as 16 percent interest till the date of payment from the beginning of filing of case and arbitration expenses were also sought.

“The case filed four years ago concluded on Friday as the ICSID ruled in favour of the Nepal government,” said Phanindra Gautam, chief of International Law and Treaty Agreement Division at the Ministry of Law, Justice and Parliamentary Affairs. “Had we lost the case, Nepal would have had to pay as much as $500 million or around Rs66 billion including interest and arbitration expenses. With the ICSID verdict, the main allegation levelled against us was that of justice not being served. Fundamentally, these charges have been dismissed.”

However, the government will still be liable to pay some amount of compensatory damages to the telecommunications conglomerate.

“The amount to be paid has not yet been finalised, although it will be a small price to pay for the huge problem we have gotten off of our backs,” Gautam said. “More significantly, the doubts of international investors that had clouded Nepal due to the accusations by Axiata have been cleared.”

Moreover, the state is no more liable to pay Rs66 billion as demanded by the company. In its case, the telecommunications conglomerate had demanded that the Nepal government return the capital gains tax amount that the state had levied on the company during its acquisition of an 80 per cent stake in Ncell.

The international body ruled that the state need not pay back the demanded amount.

Although Axiata had filed a case at the ICSID in May of 2019, the Nepal government had initially refused to participate in the legal procedure.

Later in October of the same year, the international investment dispute body itself appointed an arbitrator to advocate on behalf of Nepal to pursue the case further.

Following these developments, the Nepal government appointed five law firms—UK-based Nepali-origin lawyer Surya Prasad Subedi’s ‘Three Stone’, Washington-based law firm ‘Foley Hoag’, US-based legal practitioner of Nepali origin Khagendra Kshetry’s ‘Kshetry and Associates’, Nepal-based law firms Prudential Law Associates and Abhinawa Law Chamber—to represent itself in the case.

Additionally, constitutional lawyer Bipin Adhikari and former finance secretary Vidyadhar Mallik were also appointed as legal and tax experts.

The said case is a first where a Nepal-based company has called on an international organisation for help.

The Axiata Group had moved the Supreme Court challenging the tax evaluation, made by major audit firms, of a massive Rs40 billion that the company was liable to pay after its acquisition of Ncell.

The top court, however, had ruled in favour of the government in February 2019, following which the telecommunications conglomerate, in May of the same year, had taken its case to the international dispute settlement body.

The move came following Axiata Group’s acquisition of Reynold Holdings from Telia Sonera, a Norwegian telecommunications company, on April 11, 2016.

The case claimed that the Nepal government violated the bilateral investment promotion and protection agreement signed between Nepal and the UK on March 2, 1993.

Ncell’s parent company Axiata, though based in Malaysia, argued that the investment dispute must be settled as per British jurisdictions since the acquisition of Reynolds Holdings, a company registered in the British Virgin Islands, was made through Axiata’s subsidiary Axiata Investments, which is registered in the UK, making it a Nepal-Britain concern.

Reynold Holdings is the company that owns an 80 percent stake in Ncell.

The Nepal government, through its legal representatives, had argued that the case did not fall under international jurisdiction since the Office of the Company Registrar in Nepal was provided with no information when the acquisition was made as it was carried out through a shell company, based in a tax haven, to avoid paying taxes.

Telia Sonera didn’t pay the capital gains tax after selling its stocks to the Malaysian company. But concerns about an alleged tax evasion in the largest corporate deal in Nepal’s history didn’t die down.

After its 54th annual report, the Office of the Auditor General, for the first time, said the deal was taxable in Nepal as per Clause 57 of the Income Tax Act and stated that the government needs to raise Rs 32 billion as capital gains tax from the buyout deal worth Rs144 billion for an 80 percent stake. This report reinforced the belief that the deal is taxable and encouraged an anti-Ncell campaign.

In a public interest litigation filed with the Supreme Court on January 28, 2017 by six petitioners, including the former government secretary Dwarika Nath Dhungel, the Supreme Court ruled that since Telia Sonera had already left Nepal, Axiata and Ncell were responsible for the taxes.

Acting on the court’s February 2019 order, major audit firms carried out tax assessments on Ncell. As per their report, Ncell’s 80 percent stake was sold for Rs144.78 billion wherein a profit of Rs143 billion was made. The total capital gains tax was capped at 25 percent, which amounted to Rs35.91 billion.

An additional 50 percent penalty was levied due to the company’s failure to file taxes on time. With further interest, the total figure of tax to be paid stood at Rs62 billion. Although the company had already paid Rs23 billion of the total amount, Ncell knocked on the doors of the Supreme Court once again on April 22, 2019, claiming that it had been overcharged by Rs39 billion.

The company had claimed that its outstanding dues should be just Rs14.36 billion.

On August 26, 2019, the Supreme Court scrapped the tax determined by the Large Taxpayers’ Office for Ncell, questioning the authority’s tax determination process.

In the full text of this verdict released on November 21 of the same year, the Supreme Court said the private sector telecom company was required to pay only Rs21.1 billion in outstanding tax.

On December 6, 2019, the Large Taxpayers’ Office determined capital gains tax at Rs 22.44 billion, including fines and ordered Ncell to pay it by December 19. But the telecommunication company continued its legal fights at the international dispute settlement body.

“With the latest decision by the international body, the dispute has been settled by both the national as well as international bodies,” Gautam said.

Viewing others’ photos and videos on Facebook will attract charges at the prevailing rates. Customers can switch to the paid version which is just a click away by pressing the ‘See Photos’ option that is seen in the top right corner of the Facebook page. 

Customers will also be notified if they want to switch from the free to the paid version of the Facebook application.

Meet Karna Bahadur and Lokendra Bahadur Rana, the brothers who are competing in the electoral race against each other for the post of chairperson of Dilasaini Village Council.

Karna Bahadur, who is a former district vice-chairman of Nepali Congress’s youth wing, Nepal Tarun Dal, is representing the NC in the race and Lokendra Bahadur, a former Maoist combatant, is the CPN (Maoist Centre)’s candidate.

And they are prepared to battle it out as political rivals in the second phase of the local elections slated for June 28.  

While the two brothers say they feel honoured by the decision of their respective parties to nominate them, it is their family members and friends who have been left with the terrible task of picking a favourite.

Their father, Janjali Rana, himself a Panchayat-era local representative, knows a thing or two about politics and rivalry. But he had never imagined that his sons would one day run in an election for the same post.

“I am not going to pick a favourite, at least not now. Because two of my sons are vying in the election from different parties, I have not even asked the villagers to support either of them,” he says.

He has also suggested his other children and close relatives to try to remain neutral in the run-up to the election and vote their conscience. 

The third brother, Gobinda, says he will heed his father’s advice. 

“I am definitely proud of my two brothers and wish both of them best. However, I am not participating in either of their election campaigns.”  

A similar story is playing out in Bardiya’s Gulariya Municipality-1. Brothers, Krishna and Tanka Prasad Adhikari, are contesting in the local elections for the post of ward chairperson, one from the NC and the other from CPN-UML. 

Their mother, Santu, meanwhile, has decided not to vote, saying she cannot vote for one son and not the other.

Murder case filed against ex-state minister, 39 others

DOLAKHA: A murder case has been filed against 40 individuals, including CPN (Maoist Centre) leader and former Minister of State, Devi Khadka, at the Dolakha District Court in connection to the death of Kul Bahadur Tamang in the run-up to the first phase of local level elections held on May 14.

Kul Bahadur, 33, was reportedly murdered by the Maoist Centre supporters in Gaurishankar Village Council on May 10.

He was the son of CPN-UML election candidate, Gore Bahadur. The district attorney’s office on Sunday filed the murder case against the suspects based on the investigation report of police.

Nine suspects were arrested in the aftermath of the incident. The other suspects, including Khadka and Maoist Centre’s central secretariat member Ganga Karki, are yet to be arrested.

Dr Govinda KC broke his hunger strike on the 22nd day on Sunday morning after he reached a 12-point agreement with the government the previous night. As public concern about KC’s health and anger over the government’s reluctance to come to an agreement were mounting, many breathed a sigh of relief when the two sides finally struck a deal. We urge the government to stick to its commitment to enforce the deal, in accordance with the statement issued by a member of the government talks team.

This is crucial since there is a frustrating pattern to such deal-making. This was the 10th and the longest hunger strike in the last four years by Dr KC, who has remained steadfast in his determination to bring about necessary reforms in the country’s medical education sector. Successive governments have offered equally staunch resistance to an agreement. Even after an agreement is eventually signed after days into the hunger strike, implementation has been a fiasco.

There are a few reasons for the government’s reluctance to implement past agreements with Dr KC, but one stands out. There exists a dirty nexus between the political establishment and the medical fraternity. One of KC’s long-standing demands is to stop granting new affiliations to medical institutions before the Health Profession Education Bill is endorsed by Parliament. This is a major obstacle, for example, for Kathmandu’s National Medical College, an extension of the Birgunj-based National Medical College, which allegedly has big investments from cadres of the CPN (Maoist Centre). It is no wonder that many politicians are fighting tooth-and-nail to block passage of the bill or to pass a watered-down version of it.

Dr KC’s years-long advocacy for reforms in medical education has earned him such politicians’ wrath but considerable popular support. On Saturday morning, for example, hundreds of protestors had marched in Kathmandu as a gesture of solidarity with Dr KC. Anger with politicians has also mounted in recent times amid reports of their frequent medical sojourns abroad at the tax payers’ expense.

The government’s habitual failure to honour its deal and implement past agreements with the senior orthopaedic surgeon is largely responsible for his repeated fasts-onto-death. The good doctor has consistently and firmly maintained that he would not hesitate to launch more hunger strikes if the government continued to drag its feet over his demands. 

As such, the onus lies on the government to make sure that the good doctor will not be compelled to stage his 11th hunger strike. A government that fails to keep its word over and over again loses legitimacy. We hope the latest agreement settles the issue.

Major parties are found to have violated the election code of conduct by using children in their election promotion campaigns in major thoroughfares in Sindhupalchok district. The Nepali Congress, the CPN-UML and the CPN (Maoist Centre) were found using children during their campaigns on Thursday. 

A truck full of schoolchildren, carrying Maoist Centre flags and wearing red T-shirts, were seen chanting party slogans at Sangachok Bazaar of Chautara Sangachok Municipality. 

Moments later, a truck campaigning for the UML was seen carrying children holding the party flags and chanting ‘zindabad’ in the area. 

Later on, another truck carrying children with the NC flags was spotted during the party’s election campaign.

The children said the parties offered them pocket money and free lunch. Most of the children were from Syaule, Gaurati, Ghalegaun and Chature villages.

“I arrived here in a truck. I was offered one thousand rupees and free lunch,” said 13-year-old Sabin Tamang of Syaule, who was out on the Maoist Centre campaign. “My school is closed now. As we get money for our idle time, I came along with my friends,” he said.

Another schoolboy Nabin Gurung, 13, of  Chautre, who was participating in the UML’s campaign, said that he was also offered an attractive pay for his services.

The parties had made commitment not to use children during their campaigns for the elections.

Over 1,000 public officials from elected representatives and the government employees at the local levels have not submitted their property details, National Vigilance Centre data, updated up to Tuesday, shows.

The NVC has received property details of 75,858 public officials at the local levels as on Tuesday.

Almost five months have passed since the last fiscal year 2017-18 ended, yet 1,020 public officials from the local levels have not submitted their property details.

Clause 50 of the Corruption Prevention Act-2002 stipulates ‘a public official should submit personal property details within 60 days of assuming any public office, and those engaged in a public office should submit the details within 60 days of completing each fiscal year.

“We are yet to receive details from around 200 local units. So number of those submitting property details and those failing to do will increase,” said Bishnu Raj Lamichhane, spokesperson at the NVC.

The NVC does not have details about how many public officials should submit property details at the local levels. It believes it could be over 100,000 including elected local representatives, locally recruited staffs, temporary teachers and other staffs at the local levels. They should submit the property details at the concerned local government offices as per the notice issued by the government in Nepal Gazette on June 4 this year.

There is no data available to compare whether there has been any improvement in submission of property details. As the elections were not held in all the local units, the NVC had not made the property details of local levels as a part of its report on the issue.

As many as 131 elected local representatives had not submitted the property details last year, according to NVC. The government employees working at local levels had submitted their property details to the Ministry of Federal Affairs and Local Development. So, comparative data of two years is not available currently.

After collecting the property details, the NVC submits its report to Commission for Investigation of Abuse of Authority (CIAA), the constitutional anti-graft body.

The CIAA imposes a fine of Rs5,000 on those who fail to submit property details as per the anti-corruption law and such person may be subject to corruption investigation.

As per the government’s notice, the local governments should submit the property details received from the individuals to the Office of Chief Minister at the Provinces within 30 days after the submission deadline property details. They should also submit the same details to the NVC through software within two months after the submission deadline.

It means, the NVC should receive details from the local levels by mid-November through the software system. Around 200 local units have not yet submitted the details, mostly from Province 2. They have not entered property details in the software, according to NVC.

Almost all local units from Province 5 have entered property details into software and it is available at the NVC.

The NVC has not received the details from the local units such as Biratnagar Metropolitan City, Hetauda Sub-Metropolitan City, Kalaiya Sub-Metropolitan City, Dhankuta Municipality, Budhanilkantha Municipality, and Dhuli Bheri Municipality.

Biratnagar Metropolitan City and Hetauda Sub-Metropolitan city officials told the Post they have already submitted details to the respective offices of Chief Ministers.

“We are entering the details in the system,” said Kumar Prasad Dahal, chief administrative officer at Biratnagar Metropolis.

Climate change has become a global issue with it’s rising impact on different sectors. But the question is whether it impacts all people, communities and genders equally. Most studies show that poor communities and women in particular are more vulnerable to climate change. This is because of the difference in socially structured roles as per gender, and also high reliance on climate dependent livelihoods such as agriculture and fishery in which the poor and women are engaged. In Nepal, women comprise a majority of the poor; and lately, women’s involvement in farming has increased due to outmigration of males.

A study was conducted in Lele, Lalitpur in a bid to explore the nexus between climate change and women. The overall objective was to explore how women involved in agriculture have been impacted by climate change. The study has shown that the major impact on agriculture from climate change is soil compaction and an increase in pests and weeds in the study area. Due to soil compaction, the number of days required to plough a field and the number of labourers has doubled. This has increased the cost of production and drudgery of women. Phul Kumari Dongol of Lele complained that she used to get 13 muris of rice every year, but this year her harvest dropped to 4 muris due to pest infestation (1 muri equals approximately 64 kg).

As per the Agricultural Service Office in Chapagaun, the pest Tuta absoluta was first seen in Lele in tomatoes. Women in the study area are facing pest infestation problems during food storage, especially when storing potatoes. Women are using more pesticides than before. They used to apply them every fortnight, but now they are doing so twice a week. And what is a matter of concern is that they are not aware about the kind of chemicals they are using. They are exposed to potential hazards because they are not adopting any safety measures.

Another impact of climate change is an increase in different kinds of weeds. Because women need to spend more time weeding amid increased temperatures, they face immediate health issues like headache, dizziness and weakness. 

Climate change has affected women in the study area by increasing the burden of  agricultural work due to which they have less time for other activities, increasing their exposure to pesticides which is impacting their health in the short and long terms, increasing their dependency on market food due to a decline in production affecting their nutrition, and also increasing the cost of production due to increased number of labourers and work days and quantity of pesticides.

Climate change is and will be impacting women involved in agriculture; that is why policies and programmes should focus on increasing the adaptive capacity of women and introducing climate smart practices which can help women to save time and labour, increase production and lessen their reliance on pesticides.