US embassy cable - 05KATHMANDU1167

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001167 
 
SIPDIS 
 
STATE FOR SA/INS 
LONDON FOR POL/BELL 
NSC FOR DORMANDY 
 
E.O. 12958: DECL: 06/01/2015 
TAGS: PGOV, PINS, PHUM, NP 
SUBJECT: UPDATE ON NEPAL'S POLITICAL EVENTS 
 
 
Classified By: Charge Elisabeth Millard; Reasons 1.4 (b/d). 
 
SUMMARY 
------- 
 
1.  (U) The Royal Commission for Corruption Control (RCCC) 
jailed former Prime Minister Sher Bahadur Deuba and former 
Minister Prakash Man Singh for refusing to post bail.  On May 
31, the Supreme Court Bar Association (SCBA) decided to 
boycott the RCCC, stating it had been unconstitutionally 
formed.  Seven student unions organized protest rallies in 
prohibited areas against the February 1 Royal takeover. 
Journalists nationwide demonstrated against the government's 
decision to shut down the Communication Corner, a radio 
program production center, on May 29.  Maoists attacked a 
base camp of the Armed Police Force, killing one police 
officer, in Kanchanpur District on May 30.  END SUMMARY. 
 
DECISION OF THE ROYAL COMMISSION FOR CORRUPTION CONTROL 
--------------------------------------------- ---------- 
 
2.  (U) On May 31, the RCCC sent former Prime Minister Sher 
Bahadur Deuba and former Minister Prakash Man Singh to jail 
for refusing to post bail of USD 70 K (5 million rupees) each 
in connection with the Melamchi Drinking Water Project 
(MDWP).  Four others implicated in the case, including Tika 
Dutta Niraula, former Secretary at the Ministry of Works and 
Physical Planning; Executive Director of the MDWP Dhurba 
Bahadur Shrestha; Deputy Executive Director Deepak Jha of the 
same project; and contractor Jip Tshering Lama lacked enough 
time to deposit bail and were not released.  The RCCC filed 
corruption cases on May 16 against these six individuals for 
misappropriating USD 5.39 million (376.1 million rupees) on a 
contract for an access road to the MDWP site. 
 
SUPREME COURT LAWYERS TO BOYCOTT UNCONSTITUTIONAL RCCC 
--------------------------------------------- --------- 
 
3.  (U) On May 31 the Supreme Court Bar Association (SCBA) 
decided to boycott the RCCC, which the SCBA claimed was 
unconstitutional because it was formed under emergency 
provisions, citing Article 115 (7) of Nepal's Constitution, 
but had continued to function after the State of Emergency 
was lifted.  Article 115 (7) states that "After a State of 
Emergency has been declared pursuant to clause (1), His 
Majesty may issue such Orders as are necessary to meet the 
exigencies.  Orders so issued shall be operative with the 
same force and effect as law so long as the State of 
Emergency is in operation."  The SCBA directed its members 
not to appear before the "illegitimate" RCCC bench. 
 
STUDENTS HOLD PROTEST RALLIES IN RESTRICTED AREAS--ONE ARREST 
--------------------------------------------- ---------------- 
 
4.  (U) On May 31, seven student unions, representing the 
seven party alliance, organized rallies in prohibited areas 
of Kathmandu to protest the King's February 1 takeover. 
Police arrested one person.  The students also accused 
Tribhuvan University (TU), the largest and the oldest 
national university, of financial irregularities.  The 
students alleged that TU's Vice-Chancellor betrayed the trust 
of students and employees by spending TU funds to felicitate 
the King.  Police arrested former Secretary Baburaja 
Chitrakar of the Free Students Union of Kirtipur Multiple 
Campus affiliated with TU. 
 
JOURNALISTS DEMONSTRATE AGAINST GOVERNMENT ORDERS 
--------------------------------------------- --- 
 
5.  (U) On May 29, hundreds of journalists across the country 
demonstrated against the government's May 27 shutdown of the 
Communication Corner, a radio program production center for 
FM and community radios.  The Ministry of Information and 
Communications ordered the closure citing "illegal 
operations."  Media employees, under the banners of the 
Federation of Nepalese Journalists (FNJ) and FM and Community 
radio organizations, staged protest rallies in restricted 
areas in downtown Kathmandu.  On that same day, journalists 
in Banke District (mid-western Nepal) wore black armbands as 
a sign of protest, and local publications hung black flags at 
their offices.  In Chitwan District (central Nepal), local FM 
stations sounded conch shells.  Similar protest programs were 
also held in Kaski, Panchthar and Saptari districts. 
 
MAOISTS ATTACK POLICE POST IN KANCHANPUR DISTRICT 
--------------------------------------------- ---- 
 
6.  (U) On May 30, a Maoist attack resulted in a clash 
between the Armed Police Force (APF) and militants in 
Kanchanpur District (far-western Nepal), which left one 
policeman and one Maoist dead.  Police claimed that at least 
six insurgents died in the attack.  According to reports, 
security forces seized one 303, four M-16 rifles and dozens 
of socket bombs from the site. 
 
7.  (U) On that same day, one Maoist was killed in a clash 
with security forces in Banke District (mid-western Nepal). 
The fight broke out at night inside the premises of Sharada 
Lower Secondary School when the Maoist tried to hurl a socket 
bomb at security forces. 
 
COMMENT 
------- 
 
8.  (SBU) The RCCC's actions against those it has implicated 
in the Melamchi Drinking Water Project (MDWP) might be 
largely seen as the government's attempt to fulfill the 
public's desire to fight corruption.  However, possibly 
because the process has not been transparent, the MDWP case 
has failed to garner public support.  Moreover, legal experts 
believe that at a time when the constitutional status of the 
RCCC is itself questionable, any prosecution conducted or 
verdict given by the RCCC would remain a case without 
legitimacy. 
MILLARD