This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 KATHMANDU 000975 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR SA/INS 
LONDON FOR CGUERNY 
DEPT PLEASE PASS TO USAID/ANE 
 
E.O. 12958: N/A 
TAGS: PGOV ECON KCRM NP
SUBJECT: NEPAL'S ANTI-CORRUPTION WATCHDOG INITIATES 
INVESTIGATIONS OF LEADING POLTICAL FIGURES 
 
REF: 2002 KATHMANDU 2467 
 
Summary 
======== 
 
¶1.  (SBU) On May 16, the Commission for the Investigation of 
the Abuse of Authority (CIAA) issued summons to prominent 
current and former politicians and government employees, 
including former Prime Minister and General Secretary of the 
Nepali Congress Party Girija Prasad Koirala.  On May 19, 
Koirala filed a petition in the Supreme Court requesting a 
stay order, which was denied.  The court did issue a notice 
requiring the CIAA to respond in writing to Koirala's 
petition.  Koirala has found little support for his legal 
actions thus far.  Regardless of whether Koirala wins the 
Supreme Court case, his defiance of the CIAA now pits him 
squarely against the public's interest in fighting 
corruption.  End summary. 
 
New Sweep of Corruption Investigations 
======================================= 
 
¶2.  (U) On May 16, the Commission for the Investigation of 
the Abuse of Authority (CIAA) issued summonses to over forty 
prominent current and former politicians, ministers, police 
officers, and civil servants, including former Prime Minister 
and General Secretary of the Nepali Congress Party Girija 
Prasad Koirala.  The summonses requested the recipients to 
present themselves at the CIAA's office on May 19.  The 
CIAA's action was based upon the findings of the Judicial 
Inquiry Commission on Property (JICP), which required 30,000 
public servants and former officials to provide details on 
their assets (reftel).  The JICP provided the report to the 
King and Cabinet on March 4.  The report was passed to the 
CIAA on May 1, after a Cabinet decision.  On May 8, the Home 
Ministry made public the names of 1,900 politicians, civil 
servants, and police officers who had failed to submit 
property forms.  However, neither the Home Ministry nor the 
CIAA has released the full details of the report, citing the 
need for security during investigations. 
 
¶3.  (U) Members of the Nepal Communist Party-United Marxist 
Leninist (UML), the Rastriya Prajatantra Party (RPP), and 
both factions of the Nepali Congress received summonses. 
However, the Nepali Congress, including Koirala's daughter, 
received the majority of the actions issued.  Other prominent 
individuals summoned include: 
-- Lok Man Singh Karki, Secretary of the Ministry of 
Population and Environment; 
-- Tirtha Man Shakya, former Chief Secretary; 
-- Chakra Bandu Aryal, former Secretary of Defense; 
-- Padam Prasad Pokharel, former Secretary of Home; 
-- Achut Krishna Kharel, former Inspector General of Police; 
-- Moti Lal Bohara, former Inspector General of Police; 
-- Arjun Narsingh KC, Nepali Congress Central Working 
Committee Member and Party Spokesman; 
-- Sujata Koirala, daughter of G.P. Koirala; 
-- Khum Bahadur Khadka, former Minister of Home; 
-- Bijaya Kumar Gachchhadar, former Minister of Culture, 
Tourism, and Civil Aviation; 
-- Bal Bahadur KC, former Minister of Culture, Tourism, and 
Civil Aviation; 
-- Govinda Raj Joshi, former Minister of Home; 
-- Dr. Prakash Chadra Lohani (RPP), former Minister of 
Finance and of Foreign Affairs; 
-- Dr. Ram Saran Mahat, former Minister of Finance and of 
Foreign Affairs; 
-- Mahesh Acharya, former Minister of Finance; 
-- Bam Dev Gautam, former Deputy Prime Minister and Minister 
of Home; 
-- Bhim Rawal (UML), former Minister of Culture, Tourism, and 
Civil Aviation; 
-- Mohan Bahadur Basnet, former Minister of Health; 
-- Mohan Bahadur Karki, Chief of the National Surveillance 
Center; and 
-- Rabindra Nath Sharma, former Minister of Finance. 
 
Koirala Charges Political Motivation 
===================================== 
 
¶4.  (U) Koirala shot back at the CIAA on May 17, charging 
that the CIAA's summons was "simply a game to assassinate my 
character."  He also demanded that all of the details of JICP 
report be made public and that the royal family declare all 
of its property wealth back fifty years.  On May 19, Koirala 
filed a petition in the Supreme Court requesting a stay order 
on two alleged grounds.  First, the basis of the CIAA's 
summons, the JICP report, was illegally obtained.  Second, 
the CIAA has not followed proper procedure in summoning 
Koirala.  On May 21, the Supreme Court turned down Koirala's 
request for a stay order but instead ordered the CIAA to 
respond in writing to Koirala's petition within fifteen days. 
 Other members of the Nepali Congress Party did not join 
Koirala's legal fight and appeared before the CIAA at their 
appointed time. 
 
Others Supportive of CIAA 
========================== 
 
¶5.  (U) In pointed contrast to Koirala's public fight against 
the CIAA, Madhav Kumar Nepal, General Secretary of the UML, 
stated that "the corrupt should be punished and jailed." 
(Note:  Nepal was not/not among those summoned by the CIAA. 
End note.)  He cautioned, however, that the CIAA 
investigations must be justified and not politically 
motivated.  Executive Director Prakash Sharma of the 
non-governmental organization Pro-Public lauded the 
initiative of the CIAA, arguing that the CIAA is within the 
authority given it by Parliament.  Both Sharma and Ashish 
Thapa, Executive Director of Transparency 
International-Nepal, agreed with the CIAA's decision that the 
details of the JIPC report should not be made public in the 
interests of protecting the investigation. 
 
Next Steps 
=========== 
 
¶6.  (U) Those summoned probably will continue to trickle into 
the CIAA's office over the coming weeks.  During their 
sessions to date, the CIAA has requested clarification of 
property details and the submission of updated financial 
disclosure forms.  According to CIAA statements, the revised 
documentation will be the basis for possible future legal 
action.  The CIAA's summons to Koirala still stands and, 
according to CIAA statements in the press, Koirala's 
continued refusal to appear before the anti-corruption 
watchdog flouts the authority of that body.  Under law, the 
CIAA has the authority to arrest Koirala.  An unnamed CIAA 
official stated, however, that "we want to maintain civility 
and expect Koirala to come before or after the court verdict." 
 
Comment 
======== 
 
¶7.  (SBU) The two-month hiatus between the delivery of the 
JICP report to the Cabinet and the issuance of summonses 
raises questions about the timing of this far-reaching 
inquiry.  That said, well before the dismissal of the last 
government on October 4, public surveys cited corruption as 
one of Nepali voters' most pressing concerns.  There is 
widespread public support for CIAA's campaign as well as a 
widespread perception that well-entrenched politicians like 
Koirala are appropriate targets of investigation.  Regardless 
of whether Koirala wins the Supreme Court case, his defiance 
of the CIAA now puts him squarely against the public interest 
in fighting corruption and undoubtedly contributes to the 
long-term erosion of support for himself and his party. 
BOGGS