Act on your words, PM

Prime Minister (PM) Madhav Kumar Nepal’s directive to concerned ministries, regulatory bodies and law enforcement officials to take “stern” action against Unity Life International’s (ULI)’s executives and ensure that depositors get their money back seems to have hit a roadblock, reducing his resolve for action to tatters. Some of the very people who are responsible for ensuring swift action against ULI top guns, six of whom are still absconding but very much in contact with mid-level officials and some media outlets, are making all possible efforts to slow down the investigation. Rather it would not be an exaggeration to say that concerted efforts are being made to weaken the case against ULI officials so as to let them off the hook. This is simply unacceptable.



When Republica first wrote the story about ULI’s dubious operation, it was April 21. The government swung to “action” on May 17, nearly a month later. Facts unearthed by this paper show that the investigations have been deliberately slowed down, which, in turn, led to delayed action against the accused Unity promoters. Nepal Rastra Bank (NRB) Deputy Governor Bir Bikram Rayamajhi sat on Ministry of Finance’s instructions – some three weeks ago – to freeze all accounts of Unity and its promoters. Some investigative officials believe that this delay in freezing the accounts has allowed ULI promoters to withdraw huge sums of money as well as destroy incriminating documents. At the very least, the government should seek an explanation from Rayamajhi. The scale at which this company has been able to carry on its illegal operations is mind-boggling. So is the protection it is getting from concerned officials.



At least an incumbent minister and a government secretary are lobbying hard to slow down the investigations. Besides NRB official’s questionable action, the central regulatory body has yet to mention to the police specific laws under which action against Unity’s promoters can be taken. Other agencies which are guilty of inaction are the Insurance Board, the Ministry of Commerce and Supplies and the Department of Commerce.



We have reasons to suspect that the entire investigation will be derailed. Not only are some vested interests among the government and its agencies undermining action against the company, which has clearly violated existing laws, there is also apparent lack of coordination among the investigative teams from NRB, Revenue Investigation Department, and police. Legal experts have suggested that the government can file cases of forgery, tax evasion, money laundering and flouting of laws related to banking, insurance and foreign exchange against ULI. We ask the government to ensure that Unity and similar companies do not cheat people. At the heart of it is a very basic premise: It is the responsibility of the government and its regulatory agencies to ensure that depositors who have lost their money get it back. Would PM Nepal ensure that investigation against ULI goes on unhindered?

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