Identifier
Created
Classification
Origin
02KATHMANDU1618
2002-08-20 12:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kathmandu
Cable title:  

Seventeen Nepalese Bureaucrats Arrested in Anti-

Tags:  PGOV KCRM SNAR PINR NP GON 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 KATHMANDU 001618 

SIPDIS

SENSITIVE

STATE FOR INL/AAE, INL/C, SA/INS AND DS/ATA
JUSTICE FOR OPDAT
LONDON FOR POL/RIEDEL

E.O. 12958: N/A
TAGS: PGOV KCRM SNAR PINR NP GON
SUBJECT: Seventeen Nepalese Bureaucrats Arrested in Anti-
Corruption Drive

REF: A) Kathmandu 800, B) 01 State 158542

UNCLAS SECTION 01 OF 02 KATHMANDU 001618

SIPDIS

SENSITIVE

STATE FOR INL/AAE, INL/C, SA/INS AND DS/ATA
JUSTICE FOR OPDAT
LONDON FOR POL/RIEDEL

E.O. 12958: N/A
TAGS: PGOV KCRM SNAR PINR NEPAL'>NP GON
SUBJECT: Seventeen NEPALese Bureaucrats Arrested in Anti-
Corruption Drive

REF: A) Kathmandu 800, B) 01 State 158542


1. (U) This is an action message. Please see para 10.


2. (SBU) Summary. Seventeen NEPALese public officials
have been arrested after the government body charged with
investigating corruption raided the homes of 22 revenue
officers on August 17. The houses of two joint
secretaries were among those searched. A special court

SIPDIS
has been named to hear the cases. A commissioner from the
anti-corruption body told us that more such raids are
planned, and that state banks and other government
agencies have been asked to help with the investigation.
Recent legislation granted the CIAA greater powers and put
the burden of proof on public officials to prove where
they obtained their assets. The CIAA has expressed an
interest in obtaining bilateral aid to build its
capacities. The raids were widely lauded, but many
observers hope the CIAA goes after higher-level
bureaucrats and politicians next. Now would be an
opportune time to provide the INL-funded OPDAT course on
prosecuting public corruption, which the GON agreed in
February to accept. End Summary.

Corruption Body Arrests Sixteen in Nighttime Raids
-------------- --------------


3. (U) Sixteen NEPALese civil servants were arrested
during the night of August 17 after officers from the
Commission for the Investigation of Abuse of Authority
(CIAA) searched the houses of 22 officials for evidence of
malfeasance or embezzlement. A seventeenth official
surrendered to authorities August 19. Five individuals
under investigation were out of town, and thus were not
detained. Most worked in offices charged with collecting
taxes or customs duties.

Two Joint Secretaries Among the Accused
--------------


4. (U) The two highest-ranking individuals charged were
joint secretary-level officers (equivalent to a U.S.
Assistant Secretary): Sri Ram Pant, Chief of the Revenue
Section at the Finance Ministry, and Janardan Sharma,
Chief of the Inland Revenue Office, Kathmandu Area Number
Two. Pant was in Delhi at the time of the raid, and
cancelled his planned return to the capital August 18,
citing health problems.


Special Court Nominated to Hear Cases
--------------


5. (U) A three-member Special Court will be constituted to
hear these cases. On August 20 NEPAL's Judicial Council
agreed to put forward the names of three Appellate Court
judges to make up this body. Embassy contacts confirm
that all three judges have unblemished records and
reputations for honesty and probity. One contact noted,
however, that the three had never before been tested in
such high-profile cases.

More Raids Planned
--------------


6. (SBU) More raids are planned against other corrupt
officials, a CIAA Commissioner told us. He added that
successful prosecution depends in large part on the level
of cooperation the Commission gets from both the courts
and the defendants. With only limited personnel and
resources, the CIAA has had to draft officers from other
ministries to help with its investigation. It has also
asked for expert assistance from NEPAL's state banks and
line ministries to evaluate the evidence. Funding from
the Danish aid agency pays for two experts, which is a
great help, the Commissioner noted.

CIAA Exercising New Found Powers
--------------


7. (SBU) The CIAA Commissioner explained that the August
17 raids were the Commission's first attempt to use new
powers granted to it under recently enacted legislation
(Ref A). Under the new law, the CIAA can investigate
anyone who appears to be living beyond his means. The
burden of proof is on the defendant to prove how the
assets were obtained. Those convicted of corruption face
from two to ten years in prison, confiscation of their
assets, and fines proportional to the value of the
illegally acquired property.


8. (SBU) The Senior Governance Officer at the Asian
Development Bank (ADB) in Kathmandu echoed the
Commissioner's comments about new legislation enlarging
the scope of the CIAA's activities. Moreover, the ADB
also has concerns that the CIAA lacks the manpower and
training necessary to implement these changes. The CIAA
has refused the ADB's offer of loans for this purpose, but
has indicated its interest in receiving grant aid from
bilateral donors.

Comment
--------------


9. (SBU) Corruption is rife in NEPAL. Unfortunately,
previous attempts by the CIAA to prosecute corrupt public
officials have failed in court. The newly-enacted
legislation described in Ref A should help to strengthen
the Commission. So far, public reaction to the CIAA's
recent actions has been uniformly positive. Even so, most
observers--both NEPALi and expatriate--add that until the
CIAA lands a big fish (like a Minister or leading
politician),the Commission's efforts will have limited
impact.

Action Request
--------------


10. (SBU) Last year INL agreed to fund Post request for an
OPDAT course titled "Prosecuting Public Corruption" (Ref
B). To obtain approval to sign the INL's letter of
agreement for this course, Post engaged in protracted
negotiations with Finance Ministry, which had to seek
Cabinet-level approval before it would ink the document.
A date for the course has yet to be set by DOJ. Bringing
the course to NEPAL now would help to redress the CIAA's
training deficit and send a strong signal that the USG is
committed to helping NEPAL combat corruption.

MALINOWSKI