An exposition of a contemptible deed and involvement of Cottage and Small Industry Development Committee authorities of Humla of taking commission explicitly from service seekers, including Dalits, and single-women.

Navaraj Mahatara: Centre for Investigative Journalism-Nepal

Victim 1

The Cottage and Small Industry Development Committee apportioned a grant loan of Rs 100,000 to Dhankali Dansingh Silai Katai Udhyog, a tailoring business, owned by Dhankali Damai of Humla in the fiscal year 2018/19.

The committee’s decision on June 15, 2019, to approve the fund elated Dhankali as she thought it would precisely suffice to support and expand her small-scale business. Dhankali was not only the fortunate entrepreneur to get the fund approved that day. The committee had approved the grant loan to seven other small-scale businesses the same day.

An enthusiastic Dhankali, along with her husband, reached the office of the committee to receive the cheque 13 days later — on June 28, 2019. However, her excitement soon crushed when she was asked to ‘payback’ Rs 37,500 as ‘official formalities’ (from the allocated amount of Rs. 100,000) to Birkha Bahadur Bohara, a peon at the committee.

In fact, the committee handed over a cheque of Rs 98,500 only to Dhankali after deducting 1.5 percent (Rs 1,500) from the total amount as what was dubbed as ‘advance tax’. Though the amount (Rs 98,500) was deposited in Dhankali’s bank account, she was bound to ‘payback’ Rs 35,500 to accountant Santosh Karki and Acting Chief Shambhu Prasad Upadhyaya of the Cottage and Small Industry Development Committee. Peon Bohara was assigned by the Committee officials to play the role of a mediator to get the money back.

A total of Rs. 37,500 was deducted from the amount under different categories, including Rs 12,000 as VAT, Rs 19,000 as internal audit, and 19,000 as auditor general’s assessment fee, Rs 2,500 as tax, and application fee. Says Dhankali, “They deducted a huge amount of my money in the name of tax and other formalities.”

“The government’s decision of providing a grant loan to poor people has been hoodwinking,” Dhankali’s husband Dan Singh said, further adding, “Out of Rs 100,000, we received Rs 62,500 only.”

Accountant Santosh Karki, however, refutes his involvement in any wrongdoing. He denied having taken a single penny from service seekers as ‘commission’ under any pretext. “I issue cheques,” he said expressing ignorance over any such illicit activities. As Bohara disclosed about the game of commission, Karki shillyshallied his statement saying, “In fact, no misdeeds have taken place as communicated. “Any such cases can be resolved prudently,” he said.

Victim 2

The anguish of Lachhu Bhandari, a divorcee, who runs a tailoring shop at Simkot, district headquarters, is no different to Dhankali. The Cottage and Small Industry Development Committee approved her proposal, handed over a cheque of Rs 100,000 to expand her business but eventually asked her for Rs 31,000 as ‘formality’ and ‘procedure’.

Chief Accountant Karki asked her to ‘payback’ Rs 31,000 for his ‘soft-stance’ towards her. “I handed over Rs. 31,000 after withdrawing the money from the bank.” As usual, Bohara, the office peon, received the money in front of the Banijya Bank in Simkot. Bohara also asked Lachhu for a favor. “He asked me to knit a sweater for him,” says Lachhu.

It was Bohara who would ‘negotiate’ on behalf of Karki and Upadhyaya for the commission with the service seekers whose proposals have been approved. An obedient Bohara, too, admits to having received the commission from the service seekers. In fact, Bohara says he merely followed the instruction of the ‘bosses’.

“Karki sir instructed me to get money from Dhankali, Bhandari, Chaakhuri and Lal Kala. This is what I did. I simply acted as per the instruction.”

Victim 3

Chhakka Bahadur Phadera of Adanchuli-3, who runs a cottage industry ‘Sunil Allo and Kapada Udyog’ (textile manufacturer from local products) at Simkot-6, received a cheque amount of Rs 250,000 from the committee on June 16, 2019. The cheque was deposited in the bank on June 26, 2019. Chhakka, too, fell into the trap when he had to ‘payback’ Rs 50,000 to accountant Karki. Phadera asks, “Since the officer pitied me and provided me the grant loan, what’s wrong to pay back Rs 50,000 to him?”

Damai, Lachhu, and Phadera are mere representatives, the receivers of the grant, who were compelled to pay back a certain amount as ‘commission’ to the committee office-bearers in the fiscal year 2018/19. The committee has so far distributed a total of Rs 70 lakh 30 thousand to 42 people from June 14, 2019, to June 16, 2019.

A total of 12 individuals, whom we talked to, revealed with us that they were asked to give commission to the officials. Seven individuals said on record they gave away commission to accountant Karki and the acting office chief Upadhyaya. Sources claimed that the commission amount ranged from Rs 7 thousand to Rs 80,000.

Forget about small entrepreneurs, politically influential people, representatives, and well-to-do folks, too, have received the grant from the committee. As an act of callousness, Karki and Upadhyaya have not even spared poor people, single women, and Dalits.

The committee staffers procured a ‘commission’ of Rs 80,000 from Pyauri Jaisi of Mandalini Allo and Kapada Udhyog, Adanchuli-4, and Rs 31,000 from Lal Kala Damai of Santosh Silai Udhyog Simkot-5 to approve grants. Says Manilal Dhakal ‘Sujhav’, Jaisi’s husband, “I offered them Rs 80,000 from my personal account.”

Karki and Upadhyaya have frequently used similar formula and source to get the commission from service seekers in the pretext of VAT, revenue, and project proposal.

“This is, in fact, corruption,” says Chief of the District Coordination Committee of Humla, Dan Bahadur Raut. “Government employees cannot claim or ask for money in any pretext to approve government grant,” he adds suggesting immediate legal action against Upadhyaya and Karki.

When approached, Upadhyaya expressed ignorance about the commission that was received from service seekers. Later, upon producing evidence, he softened his voice. “I am quite unaware of what my colleagues have done. I honestly have no idea about such activities. We can still discuss it,” he said.

A 10-member committee was formed headed by District Coordination Committee Chief, Dan Bahadur Rawat on May 21, 2019, to monitor the small scale projects in Humla conducted with the Karnali Province government’s investment.

Sambhu Prasad Upadhyaya, Acting chief of the Small Cottage Industries Development Committee, however, constituted a four-member committee under his coordination by circumventing the Rawat-led committee. The Small Cottage Industries Development Committee distributed the grant to service seekers based on Upadhyaya-led committee’s decision.

The Ministry of Industry, Tourism, Forest and Environment of Karnali Province had on April 11, 2019, endorsed the Entrepreneurship Development Fund Procedural to encourage youth entrepreneurship. Clause 6 of the procedure has provisioned the formation of a five-member committee with the coordination of Small Cottage Industries Development Committee.

The five-member committee has representation from Fund and Audit Control Office, District Administration Office, Division Forest Office, and Small Cottage Industries Development Committee, while its member-secretary will be planning division chief of the Small Industry Development Committee. However, the committee does not have the representation of Division Forest Office.

Liberty for influential people

The Ministry of Industry, Tourism, Forest and Environment of Karnali Province had allocated a total of Rs 74 lakh to encourage youths of Humla towards entrepreneurship in the name of entrepreneurship development fund program in the fiscal year 2018/19. Out of the total amount, Rs 70 lakh 30 thousand has been distributed till the end of the fiscal year. Ironically, those receiving the fund include relatives of provincial ministers, political party leaders, and village municipality representatives, and office-bearers.

Shambhu Prasad Upadhyaya, Acting Chief and Santosh Karki, Accountant

According to details provided by the Small Cottage Industries Development Committee office, almost all political parties of the district have benefitted from the fund. Princa Allo and Jadibuti Prasodhan Industry belonging to Punda Bahadur Rawal, younger brother of Karnali State’s Minister for Social Development Dal Rawal, has received a total of Rs 300,000.

Likewise, Chairman of Nepal Communist Party of Humla district Lalkesh Jaisi’s Lalpancha Agriculture Firm Taanjkot has received Rs 200,000. Sagar Krishi Tatha Mauri Paalan Udhyog of Rastriya Prajatantra Party district leader Suman Rawal received Rs 200,000.

Similarly, Subarna Simkot Khadya Udhyog belonging to the eldest son of Majdoor Kisan Party district leader Subarna Rokaya has received Rs 150,000.

Likewise, Bimala Katani-Pisani Mill owned by Shaumati Aidi, vice-chairperson of Adanchuli village municipality has received Rs 200,000. Similarly, Rs 200,000 has been provided to Manish Syau Okhar and Pashupalan Krishi Udhyog owned by the wife of Chankheli village municipality chief. An amount of Rs 100,000 has been provided to SS Ekata Silai-Katai Udhyog owned by Dharmaa Damai, wife of District Coordination Committee member Dan Singh Pariyar. This is the grant details of the last fiscal year.

Staffers of the Small Cottage Industries Development Committee office, too, have also benefitted from the government grant. Prasamsa Mauripalaan Udyog owned by Sarita Buda, a staff of Small Cottage Industries Development Committee office in Humla has received Rs 230,000.

Says Rajan Regmi, a member of the grant selection committee, “We have approved the grant based on relevant documents in line with the necessary procedure.” Regmi conceded that they provided the funds to political leaders, representatives, and kith and kins of the ministers bowing down to ‘immense pressure’.

There has been a monopoly in the distribution process of the grant. Meanwhile, Upadhyaya has skillfully ‘corrected’ some figures in the list by changing the amount from Rs 100,000 to Rs 150,000 of No 7 (with the name Keshar Falful Krishi Tatha Maha Prasodhan Udhyog) in the front page of the document.

Likewise, Rs. 100,000 was ‘corrected’ as Rs 150,000 on the same page (serial no. 16) that mentioned the name of Subarna Simkot Khadhya Udhyog. “We added the amount since the money that we had earlier approved was insufficient according to their performance,” Upadhyaya said.