The prime minister´s bold directive came amid mounting pressure from the business community asking the government to take concrete steps to end the decade-long anti-competitive system once and for all.[break]
“Despite our repeated directives, the transport cartel is deep-rooted in several districts. I hereby direct officials of the concerned ministries to direct the authorities concerned to immediately cancel the registration of transport committees that have been ignoring the government´s repeated calls to end the syndicate system,” the prime minister said during a meeting with businesspersons on Sunday.
The government, through the budget, has also decided to scrap the registration transport committees involved in the cartel.
Finance Minister Surendra Pandey, Minister for Commerce and Supplies Rajendra Mahato, secretary at the Prime Minister´s Office Lilamani Poudel were also present on the occasion.
The Vehicles and Transport Management Act and Competition Promotion and Market Protection Act strictly prohibit any form of system that discourages competition and encourage syndicate system in the market. Chief District Officer can even revoke the registration of transport committees that enforce syndicate system.
PM Nepal also directed the authorities to investigate transport syndicates in various parts of the country.
“We have to investigate why the authorities have failed to end the syndicate system and also see those who have been pressing government agencies not to take any action against the syndicate practitioners,” said Nepal. He also instructed the business community to come up with details of places where the syndicate system is being practiced.
On the occasion, Dinesh Bhandary, president of Kailali Chamber of Commerce and Industry (KCC), which is spearheading the campaign against syndicate system for the last couple of months in the Far Western Region, said price of commodities had skyrocketed in the far western hilly districts due to syndicate system as it has limited the movement of vehicles to and from the region.
Protesting the syndicate system, 150 industrialists in Kailali had handed over the keys of their industries to the local administration a month ago.
“We have been compelled to announce an all out protest against the syndicate system which has not only jacked up commodity prices but also created a shortage of transport vehicles in the far western region,” said Bhandary.
Kush Kumar Joshi, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali businesspersons, welcomed the directive from the PM and urged the government to implement it at the earliest. “PM´s directive to end the transport cartel across the country is a welcome move. We want to see a sincere implementation of the directive,” said Joshi.
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