Nepali Times Asian Paints
From The Nepali Press
Bankers on the run, Naya Patrika

The police have arrested sixteen bankers in the last eight months for embezzling millions of rupees from financial institutions, while more than hundred officials who face charges are on the run.

Nepal Rastra Bank and Police's Central Investigation Bureau (CIB) began a joint investigation campaign eight months ago which first led to the arrest of Gorkha Development Bank's former president D.B. Bamjan who had siphoned off five million rupees from the bank. Thirteen other members were implicated for misappropriating funds and the Nepal Rastra Bank had issued warrants for their arrests. While most of the culprits have already fled the country, some who have political connections are still in Nepal.

The police also rounded up Rabindrabahadur Singh and Radhakrishna Amatya of United Development Bank in Bara on similar fraud cases and Rastra Bank has scrapped the bank's license.

Six people involved in the misuse of money in Merchant Capital have also been arrested while Pawan Karki, the prime suspect and former board member along with 35 others are hiding from the police.

Nepal Share Market, one of the oldest financial institution in the country is also embroiled in controversy. Its CEO Yogendra Prasad Shrestha was arrested in October for embezzling 2.61 billion. Similarly, officials of Samjhana Finance and Progressive Finance were also arrested while the officials of People Finance are on the run.

CIB's chief DIG Upendrakant Aryal says that even though banking fraud is a serious criminal offence, negligent laws and lack of investigation promote such behaviours in Nepal's banking sector. However, Aryal claims that since the arrest of many bank officials, the number of financial irregularities has decreased.

1. anonymus
Pawan Karki is in Dallas metro, TX, USA running businesses
He is not hiding I think

2. who cares
after politicians, i blame bank CEOs or, should i say promoters, for the economic misery of my country.

it is amazing in nepal that just like unknown ceos from unknown firm, even known ceos from known banks get job in another bank after the ceo drowns his previous bank.  

this is all going on cause the investment from most of the promoters are not hard earn money, they are either from ancestral wealth, or loot wealth or wealth from smuggling or luckily earned wealth.

that is why they dont know how to earn, how to manage...

it is similar to just like maoist present position. since they reached this far cause of india, shah, so after coming this far, they dont know how to proceed forward ... that is why they are confused, they keep on backtracking after making deals. 

regarding BOOT of fast track, govt has no idea how to proceed cause of the uncertainty of the future return in the investment by the private sector. 

this would be the best and simplest way to forward:
1: at least 10% share should be hold by nepali.

2: majority stake holder should have experience.

3: govt. should provide one billion every year for 30 years to the builder, since the investment return is uncertain. this should help to build confidence in the investor. and dont worry.. 

4: govt. can get their investment returned through VAT, and 

5: through percentage from fees paid directly by the traffic. and who ever offers biggest percentage to govt. should get the project.

6: and how much to charge? 10-25% of the savings from saving on the fuel. 

while calculating the charge, the return on investment should be min of 20% to max. 30%.

if by charging 25% of the saving, the return on investment is more than 30% then the charge should be reduced. and if by charging 10% of the saving, the return on investment is less than 20% then charge can be increased.

and that one billion per year should be included as return. 

if there is loss even after  charging 25% of the fuel saving then this risk should be considered by the investor, and even after charging 10% of the fuel saving, if there is profit more than 30% then it should be acceptable. 

(11 JAN 2013 - 17 JAN 2013)