In its latest investigative report, the department made some shocking revelations about billions of illegal Nepali rupees stashed in Swiss banks by Nepali politicians and businessmen.

Citing its year-long joint investigation made in collaboration with the International Consortium of Investigative Journalists (ICIJ), CIJ found a total of 55 Nepalis to have stashed their black money across foreign destinations in the form of bank deposits and various investments.

By doing so, the accused violated the Nepali law that bars Nepalis from investing abroad.

Moreover, a dozen Nepali business groups were found to have channelized their illegal money from foreign destinations to Nepal in the form of Foreign Direct Investment (FDI).

Key Findings from the CIJ-Nepal Investigation Report

The latest revelations are the result of a detailed study from 3,000 pages related to Nepal collected from around 28,000,000 pages of key findings by other internationally-renowned investigative sources such as Swiss Leaks, Offshore Leaks, Panama Papers and Paradise Papers.

• A total of 55 Nepali individuals were found stashing a total of 460,821,000 Swiss francs (NPR 520,727,74000 as per the current exchange rate) in Swiss banks
• A dozen business groups were found to have channelized illegal funds to Nepal in the form of FDI
• And, Nepali account holders already earned interest worth 6,974,000 Swiss francs
  (NPR 774,114,000) for the investment made
• Accused Swiss savings by Nepalis began the year the Maoist insurgency began in Nepal, somewhere around 1996
• There was a sudden drop in savings at the end of the Maoist insurgency and over the next two continuous years after the conflict
• 2006 alone saw 36,727,000 Swiss francs (NPR 4,150,151,000) savings by Nepalis in Swiss banks, and the number fell in 2007 to 34,500,010 Swiss francs (NPR 3,899,630,000)
• According to the Swiss National Bank 2017 report, the total Swiss savings by Nepalis almost doubled from 11,042,000 Swiss francs (NPR 1,247,746,000) in 1996 to 240,272,000 Swiss francs (NPR 2,715,736,000) in 10 years
• Overall, 138,937,000 Swiss francs (NPR 15,586,881,000) was shown to have been withdrawn so far, and the Swiss banks still have NPR 35.84 billion more

Nepal Swiss Balance Trend (1996-2018)

Minu Shah Chhibber, the Highest Amount Holder in Swiss

Among those who stashed their money in Swiss Bank, Minu Shah Chhibber was found as the highest amount holder, of around NPR 2.6 billion.

Chhibber married an Indian national Sirvatera Prakash (SP) Chhibber. After her husband’s death in 2003, Minu Shah and his sons who hold the Nepali passport were found to have deposited USD 23,552,973 (NPR 2,614,380,000) in the Swiss Bank during 2006-07.

However, the document has reportedly failed to prove the deposited amount’s link with illegal means of collection.

The list also has Ajeya Raj Sumargi (Chairman of Muktishree Group of Companies), Birendra Mahato (a former lawmaker and central committee member of the Sanghiya Samajbadi Forum-Nepal) and Businessman Upendra Mahato and his offshore company partner Niraj Govinda Shrestha, among others in the list.

Nepal Congress member and tourism entrepreneur Rajendra Bajgain was also one of the key accused found to have invested abroad and set up three different companies in three different countries in Hong Kong, British Virgin Islands and the United Kingdom.

Using these companies, Bajgain has reportedly pumped NPR 3.78 billion into Nepal for operating local hotels and casino business.

Besides top businessmen, politicians, the report also includes the names of less-known investors including entrepreneurs, doctors, professors, traders, hotel & tourism businessmen, among others.

From Illegal Funds to FDI

In a move to converting the black money to white, the accused adopted money laundering practice and brought their illegal funds to Nepal in the form of Foreign Direct Investment (FDI).

A dozen business groups have reportedly done this to save their black money.

The report found that more than 60 percent of the FDI share equalling NPR 82,655,700,000 in Nepal is coming from ‘tax haven’ nations, with the British Virgin Islands and the surrounding nations alone having NPR 62,779,700,000 share of the total amount.

According to the report, around 45 percent of FDI that came to Nepal in the last two decades was from the British Virgin Islands.

The investigation also found that FDI statistics shown by different government authorities are contradicting what the Nepal Central Bank is showing.

For instance, the Department of Industries is showing an approved FDI worth NPR 282.91 billion, with NPR 66.9 billion from ‘tax haven’ countries alone.

Whereas, the central bank statistics show NPR 82.65 billion in place of NPR 66.99 billion, raising doubts over the unauthorized FDI worth NPR 15.75 billion.

The report also shows that Nepal received NPR 160 million from the Cayman Islands and NPR 30 million from Brunei.

It’s surprising that the Government of Nepal has FDI approvals to 17 ‘tax haven’ countries!

Click Here: Official CIJ Report on Nepalis Money Laundering Case.

Overall, the report found two key violations of the Nepal Legal Provisions, which include:

1) Act Restricting Investment Abroad

“According to the Act Restricting Investment Abroad, 1964, Nepalis investing abroad may even be jailed. The Act applies to “all citizens of Nepal whether they reside within or outside Nepal and to corporate bodies established within Nepal,” says Nepal Legal Provision.

The law bars Nepalis from investing in foreign securities, a partnership of a foreign firm, foreign bank account, real estate situated abroad, or any other type of cash or kind.

“If any person does any act in violation of this Act or any notice, order or direction issued under this Act, the person shall be liable to the punishment of fine equal to the amount in question or imprisonment for a term not exceeding six months or both,” says the Act.

2) Misuse of Citizenship

Foreign citizens are using Nepali citizenship to park money abroad, says ICIJ, citing its findings in the report that found three Indian businesspersons showing Biratnagar address as a proof of address for their transactions.

Asked why they used Nepali citizenship, one of them replied, Whichever country I may be from, I’m free to go and roam anywhere,” which shows deep negligence towards Nepali citizenship.

Surprisingly, some of the accused have also evaded tax payments.

In Conclusion

Looking at the findings, the former Nepal Rastra Bank (NRB) official raises a serious concern about Nepal’s legal frameworks and institutions meant to curb money laundering.

“The moment Nepal is blacklisted, there won’t be foreign banking transaction,” says Sapkota, a former Nepal Central Bank official.

So, its high time that the Nepal Government acts seriously on the irregularities reported and take necessary measures to bring back the stashed amounts for local development.

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Now, it’s the Nepal Festival 2018 time for the community, the event scheduled to be held in Aotea Square on November 17, 2018 under the theme ‘One Country, Many Stories’.

The event is going to speak the highlights of Nepal’s rich culture, heritage, customs & traditions, music, dance and ethnic attires, food and many more.

As every year, the Nepali community is planning the festival on a grand scale making it the first big outdoor event and more charming than previous editions.

“In the last few years, we have seen a spike in the number of visitors to the event and not just the Nepalese community but the Kiwi, Maori, Chinese and extended Indian community which led us to think and plan for a bigger venue,” says Dinesh Khadka, President of New Zealand Nepal Society.

More than 10,000 people are going to be participate in the event.

The event will begin with a cultural parade from Aotea Square to Customs Street, wherein, the performers in traditional Nepali attire, playing the Nepali folk and other instruments with variety posters invite the locals to the event.

The parade is followed by a main event.

“Every country has its story- in the form of art, food and culture and those are the three aspects of our country that we are trying to portray to the New Zealanders and that is the main essence of the Nepal Festival,” says Prayash Chhetri, Joint Secretary of New Zealand Nepal Society.

As a highlight, the event is going to feature a special performance by Nepal’s renowned international troupe Kutumba.

Around 50 dignitaries including Mayor Phil Goff, Minister for Ethnic Communities Jenny Salesa, Members of Parliament and Auckland Police District Commander Karyn Malthus, among others are going to attend the event.

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Operated by the Department of Foreign Employment (DoFE), the Foreign Employment Information Management System (FEIMS) will keep detailed records of all migrant workers returning to Nepal for the first time.

“There had been data deficit on the actual number of migrant workers in foreign countries and those returning to Nepal after serving their job contract. The FEIMS will improve the data shortage condition,” says Gokarna Bista, Nepal Labor Minister.

The FEIMS website also has a supporting mobile application along with all the foreign employment and related agencies linked to it on a single platform, which include the Department of Passport, Department of Consular Services, Department of Foreign Employment, Department of Immigration, recruiting agencies, among other key agencies.

The new system also oversees employment verification procedures by Nepali missions at the foreign destinations along with gathering information on workers’ arrivals, informed the Ministry Secretary Mahesh Prasad Dahal.

“The system will provide real-time information and facilitate workers and manpower companies in their respective need. Additionally, it will also register workers’ grievances,” says Dahal.

FIEMS database will have integrated information and services concerning foreign employment at a place with consolidated data from all related agencies.

Now, workers can also apply for labor permits with ease as FIEMS issues a barcode-integrated sticker that will be unique for every application avoiding duplication. 

Ease in making insurance payments online, access to medical reports, track the progress of complaints are among other benefits the new system or its mobile application offers, informed the DoFE engineer Raju Shrestha.

“Besides providing services online to recruiting agencies and workers, the system will keep a check on efficiency of government officials. Incidents of files being lost that happened in the past will not happen,” says Shrestha.

Till date, the government was maintaining migrant workers’ data based on the number of work permits issued. However, they realized that wouldn’t be a reliable approach to keep track of Nepali migrants working in foreign destinations.  

“We have adopted the latest technology to improve foreign employment sector, making it more transparent and crack down misconduct going on under the cover of foreign employment,” says Bista.

Hope the new system would address discrepancies involving agents, insurance claims, employment, among other concerns haunting Nepali migrant workers.

Read More:

• Integrated System to Address Government Woes on Migrant Info
• Task Force Suggests New Destinations for Nepali Migrants

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The task force laid by the Ministry of Labor, Employment and Social Security said the country has multiple opportunities for its labor migrants beyond the aforementioned regions.

The recommendations made by the task force majorly involved European countries such as Poland, Czech Republic, Portugal, Denmark, Sweden and Romania holding potential job opportunities in agriculture and manufacturing sectors.

According to Udaya Raj Pandey, Head of the panel and former Nepali Ambassador to Saudi Arabia, Nepali migrant workers can find ample job opportunities in around 19 countries, with high potential in ship cruise services.

The task force further informed that Portugal and two Indian Ocean island nations, Seychelles and Mauritius, are keen on welcoming Nepali workers and have already sent draft MoUs to recruit Nepalis under the Government-to-Government modality.

Key Takeaways of the Study
Speaking on the sidelines of the report, panel member and migration researcher with the Center for the Study of Labor & Mobility Arjun Kharel said the recommendations were made after thorough deliberations with related stakeholders and international labor market already hosting high number of Nepali migrant workers.

According to the task force, there has been a high concentration of Nepali migrant workers in countries such as Qatar, Saudi Arabia, UAE, Kuwait, Bahrain, Malaysia and Oman since early 1990s.

While a total of 153 countries have given permits to Nepali workers during between FY 2008-09 and 2016-17 periods, the aforementioned seven countries alone accounted for 6.42 per cent of outgoing Nepali migrant workers.

“Sending Nepali workers to these countries without proper study of their labor markets and agreements with the host country would rather invite problems. There have been many instances of Nepalis trying to reach these countries through illegal channels either by educational consultancies or agents,” says Kharel, citing the challenges being faced by the migrant workers.

Hope the government’s decision following the recommendations will work towards enhancing safe and secure job opportunities for Nepali migrant workers.

The post Task Force Suggests New Destinations for Nepali Migrants appeared first on Nepali Sansar.

The May Day, also called International Workers’ Day, was put forth by the international labor movement, social activists and other stakeholders working for the wellness of working population, globally.

Like many other nations, Nepal has also been celebrating the Labor Day since 1963, however, listed the day under public holidays only since 2007.

Addressing Nepali nationals on the 129^th Labor Day, President Bidya Devi Bhandari lauded the global Nepali working community for their contribution towards the establishment of the Federal Democratic Republic in Nepal.

She further added that the constitutional provision of making Nepal a socialism-oriented economy will benefit the Nepali working class.

The President also wished a conducive working environment, at home and abroad, for the global Nepali community by means of fair remuneration, effective human rights and overall social security.

Meanwhile, speaking on the occasion, Nepali Minister for Labor, Employment and Social Security Gokarna Raj Bista promised massive and more decent employment opportunities for Nepalis at home.

While stating that the Nepali Constitution is committed to successful protection of the rights of Nepali migrant labor, Bista said the government would coordinate and take necessary measures to ensure a decent, systematic and safe foreign employment for Nepali migrants, while also putting an end to child labor and guaranteeing social security.

On the occasion of the 129^th Labor Day, let’s take a glance at some of the key happenings and announcements pertaining to Nepali workforce, locally and globally, in the recent times:

New Year Decision

Assuring a happy new year for Nepali working class, the Government of Nepal announced plans for the revision of minimum wage limit for Nepali labor, as per the Labor Act 2017, effective from the Nepali New Year 2075 day on April 14, 2018.

The government’s decision was in line with the Labor Act 2017 that proposes hike in minimum wage limit for every two years.

“As wage revision for workers is envisioned by the Labor Act, we are prioritizing effective implementation of the act as soon as possible by bringing a Labor Guideline. We will soon hold discussions with labor unions and employers on revising the minimum wage for workers,” Secretary at the Ministry of Labor and Employment (MoLE) Laxman Mani Mainali had said in a statement.

Stating that the new Labor Act will benefit both the workers and employers, Bharat Raj Acharya, vice-chairman at the Employers’ Council of the Federation of Nepalese Chambers of Commerce and Industry said, “A relevant revision on minimum wage for workers will be made after holding discussions with workers’ union and the government.”

The new Act, endorsed in the Nepali Parliament in August 2017, envisages a minimum wage of Rs 9,700 per month to workers. While ensuring uniformity in wages for jobs of similar nature and social security, the new law also mandates employers to provide insurance facility to the employees.

Status Report on Migrant Workers’ Contribution and Concerns

• Contribution to Nation’s GDP

Nepal ranks fourth in terms of remittance contribution to nation’s GDP, said the ‘Labor Migration for Employment – A Status Report for Nepal: 2015/16 – 2016/17’ by the Nepali Ministry of Labor, Employment and Social Security.

The report, also supported by the International Organization for Migration (IOM), UN Migration Agency, International Labor Organization (ILO) and The Asia Foundation, placed Nepal in the top fourth position globally among the list of countries with large remittance contribution to GDP.

According to the Nepal Rastra Bank, the country received Rs 699 billion in remittances in the Fiscal Year 2016-17 with Rs 471 billion in the first eight months of the year (by mid-March).

The Department of Foreign Employment data shows a total of 246,324 fresh departures and an additional 172,424 Nepalis reentries to the destination countries during the same eight-month period.

• Concerns To be Addressed

The report also highlighted key concerns pertaining to recruitment and malpractices concerning the Nepali migrant labor.

As per the report, a total of 7,500 complaints involving high-level frauds and malpractices have been registered by the Nepali migrant labor community as part of their recruitment and employment abroad in the last three years period.

The report also released some alarming stats about the death of Nepali labor migrants in foreign destinations. The report recorded deaths of around 5, 892 Nepali migrant workers, 5,765 males and 127 females, in the last nine years in at least 28 foreign destinations.

Malaysia with 2,154 deaths topped the list, followed by Saudi Arabia (1,638), Qatar (1,203), the United Arab Emirates (427) and Kuwait (186), with significant deaths also recorded in other most-sought destinations such as Bahrain (77), Republic of Korea (77), Oman (47), Lebanon (20), and Afghanistan (19).

“To understand further, the causes of the migrant worker’s death, an in-depth investigation of the autopsies and medical records in the destination countries would require,” the report noted.

• Need of the Hour

“Sound data and accurate analysis are essential to formulate evidence-based policies and implement them effectively in Nepal, a country where over half of all households have at least one family member currently living abroad or living at home as a returnee,” says Paul Norton, Chief of Mission, IOM Nepal.

“This report is an important step for the government agencies and other stakeholders to work towards effective regulatory mechanisms to protect and promote migrants’ rights and well-being,” he added.

Stating that the report shed light on key areas for reforms in the foreign employment sector, Minister Bista said, “the Ministry will be working to make the foreign employment sector more transparent and result oriented, so the migrant workers feel the positive change in the sector immediately.”

On an End Note!

Marking the occasion of May Day on May 01, 2018, the Prime Minister of Nepal KP Sharma Oli said the government is committed to protection and development of the Nepali working class who have been contributing to the country’s overall progress.

In an announcement, the Prime Minister also announced governmental preparations for minimal wage hike to guarantee systematic work under an appropriate wage system. 

Raising concern over large number of Nepali youth leaving to foreign destinations for career and employment, the Prime Minister informed that the government was working towards creating a labor-friendly environment in the country for utilizing the young human resources for overall development of the nation.

The government remains committed to the fundamental principles and treaties laid by the International Labor Organization.

Also Read: Nepal Employment Status

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As a measure towards strengthening the rights and welfare of expatriates, Qatar on November 16, 2017 announced QAR 750 as a basic wage limit for all the expatriates working in the kingdom.

Surprisingly, the new basic is QAR 150 less than the minimum wage limit of QAR 900 set by the Nepali Government in 2013 for Nepalis working in Gulf countries.

On January 21, 2013, Nepal announced a provision suggesting QAR 900 as a minimum wage for its unskilled labor working in Qatar, along with QAR 1,100 and QAR 1,500 for semi-skilled and skilled labor, respectively.

The provision also requires the employers to ensure free board allowance up to QAR 300 per worker along with QAR 4,700 as food allowance for professionals.

A Bitter Response

While the international bodies like the International Labor Organization appreciate the move, the decision is sounding bitter for Nepal and a few human rights activists.

“Let’s not forget that this is an 18 percent reduction in wages from the current minimum wage set by the Nepali Government for Nepali workers going to Qatar,” tweeted Catherine Chen, a human rights activist working for a US-based charity called Humanity United, in response to the announcement by the Qatari Labor Ministry.

Kumud Khanal, former Vice-President of the Nepal Association of Foreign Employment Association (NAFEA) says, “Nepal should endorse QAR 750 or stop sending workers until Qatar agrees to abide by its minimum wage standard. The different policies of the labor-receiving and labor-sending nations will only complicate matters.”

According to Khanal, two such different rules would increase the use of fake work contracts.

Ganesh Gurung, a migration expert, also feels that the decisions like this would hamper the workers’ overall demand.

Nepali Government officials informed that they would discuss the issue with the Qatari higher officials maintaining Nepal’s firm stand.

Workers Worry

Following the announcement, the Nepali labor community in Qatar is worried that the new rule might impact their basic rights causing abuse and exploitation concerns.

“There is a danger that QAR 750 will be the new normal and even companies which were paying 900 riyals will now refuse to pay more than the new minimum,” says Krishna Pun, a security guard in Qatar.

Pun, who is currently drawing around QAR 1,800, fears that his company would cut his pay. Many other workers feel the same, he adds. 

Future Impact

While Nepal has similar wage limits for countries such as Bahrain, Oman and Saudi Arabia, Qatar is one of the key destinations hosting around 400,000 Nepali migrant labor.

However, the new wage limit will most likely add to the financial burden of the Nepali workers in Qatar, thus creating a concern for Nepalis’ immigration to Qatar.

Many Nepali workers pay high service charges to recruitment agents and the situation is almost similar in case of workers from India, Pakistan, Myanmar and Bangladesh.

According to Amnesty International, workers pay as much as 60 percent interest on the loans they take from local moneylenders for foreign employment.

Even though countries such as Israel, South Korea and Malaysia have their own minimum wage limits, the basic wages in Qatar is less compared to other foreign destinations such as Bahrain, Malaysia, Kuwait and Oman.

This situation in Qatar exists despite the high demand for work that unskilled workers do there.

Its noteworthy that Qatar is hosting the 2022 football World Cup with most of the labor it has for construction activity are from Nepal and Bangladesh.

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The President of Nepal Bidya Devi Bhandari, Deputy Prime Minister Krishna Bahadur Mahara, officials of the National Planning Commission of Nepal and other key officials from NRNA and the Federation of Nepalese Chambers of Commerce and Industry inaugurated the event on October 14, 2017.

The four-day event, being held from October 14-17, 2017, has brought together 70,000 Nepalis living in 77 countries and is witnessing a participation of more than 2,000 delegates.

The Nepal Tourism Board (NTB) is the Promotional Partner for the event that is being supported by various other stakeholders and associations.

Event Date and Time:
Date: October 14-17, 2017; Time: 10 AM – 6 PM

Location:
Kathmandu, Nepal

Contact Info:
NRNA Global
Shahid Shukra FNCCI Milan Marg Teku, Kathmandu, Nepal
Phone: (+977-1) 4215247, 4262255
Email: info@nrna.org

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The President of Nepal Bidya Devi Bhandari called on the Non-Resident Nepali (NRN) community to invest and play a key role in the country’s overall development.

“Following the promulgation of the constitution, Nepal is entering a phase of economic development and Non-Resident Nepal Association (NRNA) should be a part of it. There is favorable atmosphere for investment in tourism, hydropower, education, health and infrastructure in Nepal,” said the President on October 14, 2017.

Bhandari stated this in her inaugural address at the ‘8^th NRN Global Conference and NRNA International Assembly, currently being held in Kathmandu.

Highlighting Nepal’s potential in education, hydropower, tourism and manufacturing, among other sectors, the President said, “This is the appropriate time for NRNs to make contribution by bringing in investment, skill and technology.”

The President also appreciated the non-resident Nepali community’s contribution to relief, rescue and reconstruction measures post the 2015 earthquake, landslides and recent floods in August 2017 that hit the country very badly.

Meanwhile, the Deputy Prime Minister and Minister for Foreign Affairs Krishna Bahadur Mahara called on the community to play a key role in exploring and expanding markets for trade abroad.

“The knowledge, skills and capital gained abroad should serve as the catalyst for Nepal’s development,” said Mahara.

The event, being held from October 14-17, 2017, has brought together 70,000 Nepalis living in 77 countries and is witnessing a participation of more than 2,000 delegates.

The new NRNA leadership for the upcoming two-year period will also be announced at this four-day event.

Right Time for Investment

In her address, Bhawani Rana, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) also termed this as the right time for investment in Nepal.

Citing key happenings such as local elections, amendments to key provisions such as company and labor acts Rana said, “These developments have reduced the cost of doing business in the country. This is the right time for the investment.”

“Investing for the prosperity of Nepal by utilizing the hard-earned capital and skills abroad was one of the prime objectives of NRNA,” Shesh Ghale, NRNA President said in his address.

Pitch for Rise in NRN’s Investment

Addressing a plenary meeting titled ‘Nepal Vision 2030 and NRNA’s Role’, post the inaugural session, Swarnim Wagle, Vice-Chairman of National Planning Commission of Nepal sought a phenomenal rise in NRN’s investment above the existing level.

A 2015 survey, commissioned by NRNA and undertaken by the Society of Economic Journalists-Nepal (SEJON), puts NRNs’ investment in Nepal at Rs 29.85 billion across the country’s nine districts and also highlights their 67 business ventures that generated employment to 8,276 Nepali citizens.

The survey reports around three-fifth of NRNs’ investment in Nepal in the services sector alone. However, the NRNA President Ghale says the actual investment would be higher than the surveyed figure and is spread across the 75 districts of the country.

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