Govt scraps passport deal

KATHMANDU, April 11: The government on Sunday revoked its March 19 decision to award machine readable passports (MRPs) printing contract to India amidst huge political pressure as well as deepening conflict between the executive and the Public Accounts Committee (PAC) of Parliament.

Government Spokesperson Shankar Pokharel said the cabinet took the decision "respecting" the PAC directives. The committee last Friday had directed the government to cancel the deal and begin a fresh competitive bidding process. [break]

But sources told myrepublica.com that the cabinet took the decision under political pressure and sensing its weak position in defending the controversy in the Supreme Court (SC) on Monday. The court is scheduled to hold a discussion on Monday on whether to continue its stay order against the deal.

The UML-led government faced an awkward situation after UML Parliamentary Party (PP) meeting unanimously urged the government to revoke the deal Sunday afternoon. The PP meeting had concluded that the deal violated the Public Procurement Act. It further expressed its concern over the impacts the deal could have on national security and interests.

The government, according to the source, realized its weak legal position in the controversy during a meeting of the prime minister, a few cabinet members and government officials at the prime minister´s residence at Baluwatar on Saturday. They found that the direct procurement provision (the deal with India in this case) of the Public Procurement Act was not followed while awarding the contract.

This [India´s] offer will not only address some of the security concerns that have been mentioned but, I am certain, will prove to be economical for the government of Nepal.

-- Rakesh Sood, Indian envoy, in a letter to Foreign Minister Sujata Koirala

I still stand by the earlier cabinet decision. It was ultimately the decision of the prime minister.

-- Sujata Koirala, Foreign Minister

The cabinet revoked the deal despite reservations from Foreign Minister Sujata Koirala who wanted the cabinet to wait till the SC verdict on the deal.

"I still stand by the earlier cabinet decision. It was ultimately the decision of the prime minister," said Koirala about her reservations about the cabinet decision.

Pokharel said the cabinet also decided to immediately begin a new bidding process, directing the Ministry of Foreign Affairs to write to India about the circumstances under which the government revoked the deal singed on March 23.

When asked whether the cabinet decision would affect Nepal-India relations, Pokharel said, "The government hopes that India will understand parliamentary system."

But Koirala said the cabinet decision might affect bilateral relations. "It is not good. It will affect Nepal´s image before the international community."

The cabinet had convened even in the afternoon but did not take any decision as Koirala was in Biratnagar. The meeting was then called in the evening to take the decision.

Sood had written to Sujata

Meanwhile, the UCPN (Maoist) deputy parliamentary party leader Narayan Kaji Shrestha seriously objected to the government´s decision to award the contract to India saying it was against Nepal´s security and sovereignty.

Reading out a letter written by Indian Embassy in Kathmandu to Deputy Prime Minister and Foreign Minister Sujata Koirala, he said that the deal had seriously jeopardized Nepal´s security. "We cannot agree to a deal that puts our security under jeopardy to fulfill the interests of another country," he said.

The letter sent by Indian Ambassador Rakesh Sood to Koirala on December 4 said, "India and Nepal share an open border regime under which Nepali citizens do not require a visa to travel to India and vice-a-versa. In recent times, the open border has also been a source of certain security concerns which have been shared with the Nepali leaders at the highest level."

After giving details of its proposal to print and supply the passports by the Security Printing and Minting Corporation of India Limited (SPMCIL), Sood in the letter said, "This [India´s] offer will not only address some of the security concerns that have been mentioned but, I am certain, will prove to be economical for the government of Nepal. SPMCIL is ready to receive a Nepali delegation to finalize the arrangements at the earliest possible."

Maoists call off banda

Minutes after the government decided to cancel the deal, the UCPN (Maoist) called off its nationwide general strike scheduled for Monday against the MRP deal.

"We called off the general strike as the objective behind it has been addressed," said Maoist vice chairman Mohan Baidya. He argued that the scrapping of the deal with India proved that the government was wrong. "We expect that the government will step down on moral grounds," Baidya said.

According to him, Maoist leaders held talks with UML leaders including Chairman Jhala Nath Khanal before taking the decision to call off the strike. Khanal and other UML leaders reached to Maoist Chairman Pushpa Kamal Dahal´s residence at Naya Bazar in the evening.