US embassy cable - 05KATHMANDU2488

C O N F I D E N T I A L KATHMANDU 002488 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR SA/INS 
NSC FOR RICHELSOPH 
 
E.O. 12958: DECL: 11/15/2015 
TAGS: PREL, PGOV, PHUM, EAID, NP 
SUBJECT: NGO CODE OF CONDUCT NOW IN EFFECT 
 
REF: KATHMANDU 
 
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d). 
 
Summary 
------- 
 
1. (C) Nepal's new Code of Conduct for Social Organizations 
came into effect on November 10, allowing the Social Welfare 
Council to suspend the registration or cancel an 
organization's license in case of a breach of Code.  The 
Social Welfare Council formulated the Code after discussions 
with various donor agencies, national and international 
organizations, UN agencies and different government bodies. 
Nevertheless, local NGOs and INGOs have voiced harsh 
criticism of the new Code.  The donor community is reviewing 
the Code before commenting.  End summary. 
 
Enforcement of Code to Check Misuse of Foreign Funds 
--------------------------------------------- ------- 
 
2. (U) The Social Welfare Council announced on November 10 
that it would begin enforcing a Code of Conduct for Social 
Organizations and Associations.  Durga Shrestha, the head of 
the Social Welfare Council and Minister for Women, Children 
and Social Welfare, told media, "this Code of Conduct will 
make the NGOs more effective, responsible, and well managed." 
 It focuses on transparency and accountability by requiring 
organizations to publish their audited financial and yearly 
progress reports and submit them to their respective District 
Administration Office and District Development Committee. It 
also prohibits anyone from heading a social organization for 
more than two terms.  Shrestha claimed that only those who 
were running their organization as a monopoly or who had 
misused funds would oppose the Code.  An editorial on 
November 11 in the Himalayan Times acknowledged the lack of 
transparency among NGOs in Nepal.  Without transparency, the 
editorial noted, it was difficult to know how much foreign 
money entered Nepal each year, who were the beneficiaries, 
and how this affected Nepal's national interests. 
 
Problematic Sections of Code 
---------------------------- 
 
3. (C) The Social Welfare Council formulated the Code after 
discussions with various donor agencies, national and 
international organizations, UN agencies and different 
government bodies.  However, NGOs and international 
organizations expressed particular concern about parts of the 
Code that call for NGOs to refrain from taking part in 
partisan political activities within their organizations 
(section 3.3), confidentiality of information (section 14), 
government approval before implementing foreign funded 
programs in an area (section 11.3) or accepting foreign donor 
assistance (section 11.2). The Social Welfare law enables the 
government to suspend the registration or cancel the 
organization's license in case of a breach of Code. 
(Comment: These sections of the Code could restrict NGOs' 
ability to share information on government human rights 
abuses, plan programs without governmental interference, or 
work in sectors the government does not approve.  The Code 
could also be used to cut off funding to an NGO that the 
government does not want operating.  End comment.) 
 
Strong Opposition By NGOs... 
--------------------------- 
 
4. (U) The NGO Federation of Nepal, composed of over 2,600 
NGOs, announced on November 10 that it would defy the code. 
After an emergency midnight meeting, these NGOs decided that 
they were seriously concerned about the "so called" Code of 
Conduct enforced by the "unconstitutional government," which 
was involved in a series of moves curbing the fundamental 
rights of the people.  Federation President Dr. Arjun Karki 
told media that "in order to defend the sovereignty, autonomy 
and independence of the NGOs we have decided to organize a 
nationwide movement."  On November 11, NGOs nationwide 
protested against the Code of Conduct, including burning 
copies of the Code in 35 districts in Nepal's five 
development regions.  A number of NGOs operating in Nepal 
issued separate statements condemning the Code.  The head of 
one NGO, Informal Service Center, Subodh Pyakurel told media 
"we will knock on the doors of international courts for 
justice and there is no way the Code of Conduct can be 
implemented," as he asserted that the Code violated the 
fundamental rights of the people and was unconstitutional. 
Sapna Pradhan Malla, the president of another NGO, the Forum 
for Women Law and Development, said the "attack" on NGOs was 
part of the government's systematic attack on all sectors.  A 
November 14 editorial in the Kathmandu Post noted that 
"apparently, the Code of Conduct appears a normal government 
procedure to regulate I/NGOs in Nepal.  However, the 
draconian intention lies unsuccessfully hidden between the 
lines." 
 
...INGOs, ... 
------------- 
 
5. (U) The General Assembly of the Association of INGOs in 
Nepal also expressed serious reservations about the Code of 
Conduct.  Dr. Shibesh Chandra, association president, said 
the full-house general assembly objected to the imposition of 
the Code.  He added that the assembly was still formulating a 
course of action. 
 
...and UN Special Representative 
-------------------------------- 
 
6. (C) In a November 10 statement, UN Secretary General Kofi 
Annan's Special Representative on Human Rights Defenders, 
Hina Jilani, asked the government to repeal the code of 
conduct, which, if adopted, she said, would be in 
contravention of Nepal's international obligations.  The UN 
Office of High Commissioner for Human Rights (OHCHR) told 
Emboff that Jilani had privately written the government about 
her concerns, but, having received no response, felt 
compelled to make her concerns public.  Jilani's statement 
said that she was "deeply concerned that the adoption of the 
provisions included in the draft code of conduct... would 
lead to violations of the Declaration on the Right and 
Responsibility of Individuals, Groups and Organs of Society 
to Promote and Protect Universally Recognized Human Rights 
and Fundamental Freedoms - otherwise known as the Declaration 
on human rights defenders - as well as other international 
human rights standards." 
 
Concerned Intentional Community Reviewing Code 
--------------------------------------------- - 
 
7. (C)  Donors, in a meeting on November 14, noted that they 
did not want to comment publicly before examining the code in 
detail.  The international community was waiting for an 
official English version of the text.  They agreed that a 
unified donor position, or at least comments that were 
complementary, could be useful in pressuring the government. 
The UN Resident Representative suggested the international 
community send a letter under his signature expressing their 
general concerns, as was done to pass along reaction to the 
draft Code. 
 
Comment 
------- 
 
8. (C) The Embassy is reviewing the Code and coordinating 
with other members of the international community before 
commenting.  There was widespread recognition that Nepal's 
34,000 NGOs needed to have greater transparency and 
accountability.  Key will be how HMGN implements the Code and 
whether it uses the Code to target certain NGOs for political 
reasons.  We are attempting to clarify the extent to which 
the other main concern we voiced during the consultative 
phase --precedence of bilateral agreements over the new Code 
-- is addressed adequately in the final text. 
MORIARTY