December 2023 Analysis: Domestic Politics and Governance
Two major scandals surfaced in December; the first involved Axiata’s sale of its 80 percent equity stake in Ncell to a British company at a suspiciously low price, and the second was Rashtriya Swatantra Party (RSP) chief Rabi Lamichhane’s alleged involvement in irregularities in Sudarshan and Sahara cooperatives. While the former attracted speculations of high-level political involvement, the latter incriminated a top political leader directly. The end of the month saw a rather unfortunate death of two protestors after the police shot at a demonstration by Korean language test candidates in Balkumari, which had escalated after a minister’s vehicle was torched. Politically, the major parties appear to be converging towards an agreement—to share the 19 seats up for grabs— as the National Assembly (NA) election comes closer.
After the Malaysian company Axiata announced the sale of its equity stake in Ncell to Spectrlite UK Limited at a suspiciously low price by evading required approval, it took the shape of a major scandal among Nepali media, politicians, and intelligentsia. Lawmaker Amresh Kumar Singh alleged involvement of high-profile leaders, and went on to file a writ petition against the government, which led the Supreme Court to issue a short-term interim order and a show cause order.
Meanwhile, lawmaker Sumana Shrestha had lodged an official complaint to the president of the Health & Information Technology Committee of the federal parliament—demanding a detailed investigation into the purchase-sale of NCELL’s share. On December 5, a meeting of the coalition parties also decided that it was important to conduct a detailed study and investigation of the Ncell transaction. On December 7, the government formed a five member high-level committee led by ex-Auditor General Tankamani Sharma, to investigate the scandal within 30 days. Some media, analysts, and even lawmakers question the government’s decision to form such independent committees by bypassing the existing mechanisms and authorities and allege that it is a ploy to derail the investigation and cover up any involvement of the leaders. Responding to these concerns, Prime Minister Dahal assured that the committee would not trample on the rights of the Nepal Telecommunication Authority (NTA).
Another irregularity that surfaced involved the illegal transfer of money deposited into Sudarshan and Sahara cooperatives in the name of Gorkha Media Network. The scandal implicated Rabi Lamichhane, the chief of RSP, who has not only rejected the allegation but also filed a defamation case against Kantipur for reporting his involvement. Before seeking the legal measure, however, Lamichhane engaged in a series of verbal spats with Kantipur, largely through his social media posts. The scandal has only added to the growing skepticism the RSP chief and his party have been receiving—for not being any different from the parties and leaders they once sought to replace.
On December 29, two protestors were killed after Nepal Police opened fire at a demonstration in Balkumari that had escalated after a minister’s vehicle was torched. Korean test candidates, who had failed the language test for shipbuilding jobs in South Korea, staged the demonstration demanding to appear in the test for manufacturing jobs. While the presence of the Physical Infrastructures and Transportation minister at the incident and the chronology of the events suggest a need for investigation, the police’s approach of handling a crowd of only a few thousand protestors signal a bigger problem in police conduct and a lack of proper training.
Like in any other crisis, the opposition parties and leaders grabbed the opportunity to politicize the issue. For instance, at a State Affairs and Good Governance Committee meeting, CPN-UML leader Rajendra Rai demanded home minister Narayan Kaji Shrestha’s resignation on moral grounds. RSP chief Lamichhane, too, accused Shrestha of having lost the confidence of the security institutions. Meanwhile, the government suspended Lalitpur’s chief district officer and senior police officers who ordered to open fire at the protests. In addition to the problems within the country’s security apparatus, the political leadership fails to acknowledge that protests like the one in Balkumari are mere symptoms of a much larger problem—a society frustrated with corruption, bad governance, and lack of employment opportunities. For instance, one of the main reasons behind the Balkumari protest was the youths’ anger at ‘unjust’ policies that prevented them from reappearing for the language tests despite paying exorbitantly high amounts for the Employment Permit System (EPS) exam and health examination.
After the Election Commission set the date for the National Assembly election to fill 19 seats, the coalition parties began their intra-party discussions on choosing candidates and negotiating seat-sharing arrangements among the parties. In particular, the Nepali Congress had an extensive intra-party debate on who to field for the election, after a few names that floated in the media received massive criticism. Consequently, on December 30, the party set some definite criteria that would prioritize those who had been repeatedly missed out and not given opportunities in the party. As if the intra-party competition and the coalition parties’ claims did not already make the process challenging, the CPN-UML expressed its desire for some seats in the NA. In return, the opposition party would allegedly support the government to pass the Transitional Justice bill.
The parties’ focus on the NA election and their exercise to forge a seat-sharing agreement seems to have temporarily relieved some pressure from Dahal, who was considering a cabinet reshuffle. PM Dahal reportedly wanted to replace the finance minister Dr. Prakash Sharan Mahat, but NC chief Sher Bahadur Deuba insisted on relieving home minister Narayan Kaji Shrestha, too, which brought the two leaders at an impasse, thereby complicating the reshuffle. Deuba has been unhappy with Shrestha for ordering the arrest of NC leader and ex home minister Bal Krishna Khand in the fake Bhutanese Refugee scandal.
What also deserve mention are the calls for a leadership change from within the coalition partners, as well as the continuous cries for systemic reform by pro-monarchy forces. Concerned by these indicators, PM Dahal, president Ram Chandra Poudel, and CPN-UML chief Oli have repeatedly expressed their commitments to defend the country’s federal democratic republic and called on the public to do the same.
Timeline of Major Events
| Date | Events |
| December 30 | Government suspends security officer who ordered to open fire at the Balkumari protests; Nepali Congress (NC) sets criteria for National Assembly candidacy. |
| December 29 | Two protestors killed in police shooting at Balkumari after a demonstration demanding Korean language tests turns violent. |
| December 20 | The Election Commission approves the list of 2047 voters for the National Assembly election of 19 seats to be held on January 25, 2024. |
| December 25 | Kantipur reports RSP’s chief Rabi Lamichhane’s involvement in irregularities in Sudarshan and Sahara cooperatives. |
| December 7 | A five-member high-level committee formed to investigate the Ncell scandal. |
| December 4 | MP Sumana Shrestha writes a letter to the parliament’s Education, Health, and Information Technology Committee, pointing out the need to investigate Ncell sales. |
| December 1 | Axiata informs of selling its 80% equity stake in Ncell to Spectrlite UK Limited. |
Irregularities and their Politiciation
After the Malaysian company Axiata announced the sale of its equity stake in Ncell to Spectrlite UK Limited at a suspiciously low price by evading required approval, it took the shape of a major scandal among Nepali media, politicians, and intelligentsia. Lawmaker Amresh Kumar Singh alleged involvement of high-profile leaders, and went on to file a writ petition against the government, which led the Supreme Court to issue a short-term interim order and a show cause order.
Meanwhile, lawmaker Sumana Shrestha had lodged an official complaint to the president of the Health & Information Technology Committee of the federal parliament—demanding a detailed investigation into the purchase-sale of NCELL’s share. On December 5, a meeting of the coalition parties also decided that it was important to conduct a detailed study and investigation of the Ncell transaction. On December 7, the government formed a five member high-level committee led by ex-Auditor General Tankamani Sharma, to investigate the scandal within 30 days. Some media, analysts, and even lawmakers question the government’s decision to form such independent committees by bypassing the existing mechanisms and authorities and allege that it is a ploy to derail the investigation and cover up any involvement of the leaders. Responding to these concerns, Prime Minister Dahal assured that the committee would not trample on the rights of the Nepal Telecommunication Authority (NTA).
Another irregularity that surfaced involved the illegal transfer of money deposited into Sudarshan and Sahara cooperatives in the name of Gorkha Media Network. The scandal implicated Rabi Lamichhane, the chief of RSP, who has not only rejected the allegation but also filed a defamation case against Kantipur for reporting his involvement. Before seeking the legal measure, however, Lamichhane engaged in a series of verbal spats with Kantipur, largely through his social media posts. The scandal has only added to the growing skepticism the RSP chief and his party have been receiving—for not being any different from the parties and leaders they once sought to replace.
Balkumari Protests
On December 29, two protestors were killed after Nepal Police opened fire at a demonstration in Balkumari that had escalated after a minister’s vehicle was torched. Korean test candidates, who had failed the language test for shipbuilding jobs in South Korea, staged the demonstration demanding to appear in the test for manufacturing jobs. While the presence of the Physical Infrastructures and Transportation minister at the incident and the chronology of the events suggest a need for investigation, the police’s approach of handling a crowd of only a few thousand protestors signal a bigger problem in police conduct and a lack of proper training.
Like in any other crisis, the opposition parties and leaders grabbed the opportunity to politicize the issue. For instance, at a State Affairs and Good Governance Committee meeting, CPN-UML leader Rajendra Rai demanded home minister Narayan Kaji Shrestha’s resignation on moral grounds. RSP chief Lamichhane, too, accused Shrestha of having lost the confidence of the security institutions. Meanwhile, the government suspended Lalitpur’s chief district officer and senior police officers who ordered to open fire at the protests. In addition to the problems within the country’s security apparatus, the political leadership fails to acknowledge that protests like the one in Balkumari are mere symptoms of a much larger problem—a society frustrated with corruption, bad governance, and lack of employment opportunities. For instance, one of the main reasons behind the Balkumari protest was the youths’ anger at ‘unjust’ policies that prevented them from reappearing for the language tests despite paying exorbitantly high amounts for the Employment Permit System (EPS) exam and health examination.
National Assembly Election and Leadership Change
After the Election Commission set the date for the National Assembly election to fill 19 seats, the coalition parties began their intra-party discussions on choosing candidates and negotiating seat-sharing arrangements among the parties. In particular, the Nepali Congress had an extensive intra-party debate on who to field for the election, after a few names that floated in the media received massive criticism. Consequently, on December 30, the party set some definite criteria that would prioritize those who had been repeatedly missed out and not given opportunities in the party. As if the intra-party competition and the coalition parties’ claims did not already make the process challenging, the CPN-UML expressed its desire for some seats in the NA. In return, the opposition party would allegedly support the government to pass the Transitional Justice bill.
The parties’ focus on the NA election and their exercise to forge a seat-sharing agreement seems to have temporarily relieved some pressure from Dahal, who was considering a cabinet reshuffle. PM Dahal reportedly wanted to replace the finance minister Dr. Prakash Sharan Mahat, but NC chief Sher Bahadur Deuba insisted on relieving home minister Narayan Kaji Shrestha, too, which brought the two leaders at an impasse, thereby complicating the reshuffle. Deuba has been unhappy with Shrestha for ordering the arrest of NC leader and ex home minister Bal Krishna Khand in the fake Bhutanese Refugee scandal.
What also deserve mention are the calls for a leadership change from within the coalition partners, as well as the continuous cries for systemic reform by pro-monarchy forces. Concerned by these indicators, PM Dahal, president Ram Chandra Poudel, and CPN-UML chief Oli have repeatedly expressed their commitments to defend the country’s federal democratic republic and called on the public to do the same.
CESIF Nepal