Maoist Extortion Drive Hurts Business, People in Nepal
Sanjaya Dhakal
OneWorld South Asia
23 July 2004
KATHMANDU, JULY 23 (OneWorld) - As Nepal's Maoist guerrillas intensify their drive to raise funds in the name of their party, it's causing great financial and mental distress to those targeted such as traders, teachers and government employees. With fear being the overriding factor, few would dare go against the Maoists, who have openly declared their intention to overthrow the government and establish a communist dictatorship. Teachers regularly face extortion threats in villages. Since schools are the only government agencies allowed to operate even in Maoist-controlled areas, teachers are easy prey. "We have reports that teachers in some parts of Bardiya district in midwest Nepal have to pay 60 percent of their annual salaries to the Maoists as donations. In other districts, too, similar donations of around 25 to 45 percent are mandatory," says Keshab Prasad Bhattarai, president of the Nepal Teachers Association (NTA). Bhattarai says at least 3,000 teachers have been displaced because of the conflict. In May, when the Maoists' student wing had imposed an indefinite strike in educational institutions, Umesh Shrestha, the president of the Private and Boarding Schools Organization of Nepal (PABSON), had expressed frustration over the persisting disturbances in schools. "It is an open secret that many times schools also have to pay money to buy safety," he had charged. Stories of extortion rarely filter out as most victims prefer to remain anonymous. A recent counter-terror operation in the capital Kathmandu that went horribly wrong has exposed the problem of extortion. In what appears to be a botched attempt to act against the Maoist extortionists, security forces killed a Maoist cadre as well as an official at the Nepal Electricity Authority (NEA). On July 13, security personnel in mufti opened fire at a Maoist cadre named Krishna Adikari as he was about to receive 'protection' money from Ullas Baidya, a director of the Nepal Electricity Authority. While the Maoist was killed on the spot, bullets fired by the security personnel also hit Baidya who later died in hospital. Reports said Baidya was acting in coordination with the security forces who had provided him with a bundle of fake notes to hand over to the Maoists. Later the Royal Nepalese Army (RNA) clarified that Baidya was killed by a bullet fired by an unknown person. According to RNA spokesperson Brigadier General Rajendra Bahadur Thapa, Baidya had asked for security assistance after receiving extortion threats from the Maoists and, therefore, the security personnel had accompanied him to arrest the extortionist. Although the Maoists later denied they had any hand in the incident, police authorities said the Maoists regularly issued extortion threats to people even in Kathmandu. "The government forces are prepared to help if anybody comes with a complaint of extortion," says Thapa. Businessmen are another high-risk category. A midnight knock by rebels demanding hefty amounts as donations is a reality they have come to live with. "Depending on the size of their industry and business, the Maoists ask for anything between a few hundred dollars to thousands," points out an official at the Federation of Nepalese Chamber of Commerce and Industry (FNCCI). In a rare revelation of the extortion problem, Binod Chadhary, a leading industrialist and president of the Confederation of Nepalese Industries (CNI), recently said, "Nepalese businessmen are currently passing through extreme difficulties. Apart from other problems, we also suffer from regular extortion threats." For obvious reasons, most people shy away from divulging information about the extortion. "The business community is caught between the government's drive for tax revenue and extortion terror, or in softer tones, voluntary contributions demanded by the Maoists," says an FNCCI director, Narayan Manandhar. In many cases, the Maoists have even killed people who refused to pay up. On January 15, Gopal Giri, a mayor of Birgunj sub metropolis was shot dead by the Maoists. According to news reports quoting his family sources, the rebels had asked for a donation of US $6,000 from Giri. Upon his refusal to provide the money, they asked him to step down from the position of mayor. Later, they shot him. The Maoists, on their part, deny they engage in extortion. But they concede that they accept contributions for their party and have the legitimate right to raise taxes in areas under their control. In fact, foreign envoys in Nepal have repeatedly urged the Maoists to refrain from harassing businessmen. "To the best of my knowledge, there has not been complete transparency on the Maoists part to people they will kill or torture and certainly there is no way of seeking redress for people whose money was extorted by the Maoists," said the American ambassador to Nepal, James Moriarty. The Maoists also appear to be desperate to raise funds not only within the country but also outside. A recent news report stated they were planning to organize an open mass meeting in Belfast, Ireland on August 7. The meeting is being organized by the World People's Resistance Movement in order to gain support and collect donations for the Maoist movement in Nepal. Apart from the Maoists' extortion, police authorities complain that the threat of bogus Maoists has also increased. "There are many incidents in which common criminals are found to extort and loot money in the name of the Maoists," points out a senior police official. On July 21, three people who identified themselves as Maoist guerrillas looted over US $2,000 from a money exchange counter in Kathmandu. The police suspect the three were common looters, not Maoists. Incidents like these have made a serious dent in business confidence in the country, leading the Nepalese to pay a heavy price for a war of attrition between the government and rebels.