Identifier
Created
Classification
Origin
04KATHMANDU251
2004-02-09 09:41:00
CONFIDENTIAL
Embassy Kathmandu
Cable title:  

NEPAL: MAOIST EXTORTION: ONE BUSINESSMAN'S

Tags:  ECON ASEC PTER CASC NP 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L KATHMANDU 000251 

SIPDIS

STATE FOR SA/INS; LONDON FOR POL/GUERNEY, NSC FOR MILLARD

E.O. 12958: DECL: 02/08/2014
TAGS: ECON ASEC PTER CASC NP
SUBJECT: NEPAL: MAOIST EXTORTION: ONE BUSINESSMAN'S
EXPERIENCE

Classified By: POL PMAHONEY. REASON: 1.5 (B,D).

C O N F I D E N T I A L KATHMANDU 000251

SIPDIS

STATE FOR SA/INS; LONDON FOR POL/GUERNEY, NSC FOR MILLARD

E.O. 12958: DECL: 02/08/2014
TAGS: ECON ASEC PTER CASC NP
SUBJECT: NEPAL: MAOIST EXTORTION: ONE BUSINESSMAN'S
EXPERIENCE

Classified By: POL PMAHONEY. REASON: 1.5 (B,D).


1. (C) A prominent Nepali businessman who is also a member
of the Nepal-USA Chamber of Commerce admitted to Econoff that
his company paid approximately USD 800,000 to the Maoists
"sometime last year." The businessman indicated that he
decided to pay after five Maoists strapped with grenades and
carrying bombs entered his Lumbini hotel, threatening to blow
it up if payment was not made within 24 hours. The
businessman said he contacted the municipal and security
authorities for assistance, but his requests went unanswered.
He claimed that at least six other hoteliers in Lumbini paid
similar amounts to the Maoists during the same timeframe,
with one establishment owned by a Japanese company reportedly
paying an even higher premium.


2. (C) Comment: Nepali businessmen readily admit that they
are regularly subject to extortion. Rarely, however, do they
admit (at least to us) that they pay. Our contact's unusual
candor offers a rare window into the scale of demands facing
business owners--and the pressure they obviously feel to
comply. Our source's information, if accurate, also provides
some equally rare insight into the sums of money the Maoists
are able to command from frightened members of the besieged
business community. End Comment.
MALINOWSKI