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Sugam case mocks rule of law, consumer safety

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KATHMANDU, Sept 4: The dramatic release of notorious liquefied petroleum gas (LPG) bottler Shiva Prasad Ghimire of Sugam Gas Company (SGC), who put the lives of thousands at risk by circulating tampered LPG cylinders, has raised serious questions over the government´s commitment to upholding fundamental consumer rights.



Ghimire, promoter of Sugam Gas and Nepal Petroleum Trade Links (NPTL), was facing a number of charges, including grave ones like flouting the Anti-Black Marketing Act and the Consumer Rights Protection Act (CRPA). [break]



He was confirmed by a high-level committee of the Ministry of Industry (MoI) in June as someone who masterminded the collection of cylinders belonging to competitors from the market -- an act which is against the regulations of Nepal Oil Corporation (NOC) as well as the Department of Commerce (DoC).



His action had surprised 24 different LPG bottling companies that suddenly found their cylinders disappearing from the market. It was a violation of competition law as it inflicted instant loss of property and market share on competitors.



That is not all. He was also found of circulating tampered cylinders with re-fitted foot and neck rings -- something that substantially weakens the capacity of the cylinders to withstand pressure and renders them prone to leakage and explosion. That kind of tampering directly threatened the lives of some 25,000 thousand consumers; they could have met with accidents anytime.



Ghimire was caught red handed when the Bureau of Standards and Metrology conducted a sudden raid at NPTL on May 5 this year. Officials found and seized 15,314 cylinders of 24 different companies at the premises. There were also thousands of LPG cylinder foot and neck rings with the SGC name engraved on them.



”NPTL was clearly replacing the original neck and foot rings with ones with the SGC name,” according to Kamal Bahadur Thapa, a DoC official.



With the MoI investigation team pinning down Ghimire for a grave crime, then acting minister for industry Krishna Bahadur Mahara took a ministerial level decision on June 11 to scarp SGC´s operating license and instructed the authority concerned to take severe action against him.



If Mahara´s decisions had been implemented, SGC´s license would have been scrapped by now and Ghimire might have faced a fine of Rs 500,000 or a 15-year jail term or both.



However, what followed after Mahendra Paswan assumed the post of industry minister was a complete maze that has irked consumers nationwide.



Overruling Mahara´s decision, Paswan last week decided to suspend SGC´s license for just six months and let Ghimire walk scot-free on payment of a fine of just Rs 500,000. Paswan´s decision, which came just prior to his quitting office, left the market inspecting authority concerned bewildered.



As if that were not enough, Sunsari District Administration Office (DAO) on Thursday suddenly released Ghimire on bail of Rs 3.84 million. “This is pretty sinister,” said a surprised DOC official.



The case of SGC and Ghimire, who has influential political leaders and bureaucrats in his pocket, clearly makes a mockery of the country´s laws. It has also displayed how meek the government and its agencies are when faced with upholding the fundamental rights of consumers and safeguarding their lives.



“Ironically, such an incident occured on the day Prime Minister Dr Baburam Bhattarai and Chief Secretary Madhav Ghimire were instructing top government officials and other authorities concerned to improve governance and provide relief to consumers,” said the DoC official.



Home Secy seeks clarification from CDO



KATHMANDU (Republica) -- Home Secretary Leela Mani Paudyal on Friday sought clarifications from Chief District Officer Chudamani Sharma as to why he released notorious LPG bottler Shiva Prasad Ghimire even while he is waiting to be tried for grave crimes.



"The CDO´s decision drew my attention as soon as I came to know about it. I have sent a letter seeking clarifications from Sharma," Secretary Paudel told Republica. According to Paudel, he has asked CDO Sharma to furnish the reasons for releasing Ghimire on bail instead of sending him to jail.



The Ministry of Home Affairs (MoHA) will decide whether to take action against Sharma after assessing his clarifications.



Ghimire, once released on bail, challenged the government´s authority to hold him in custody. “I will move the courts and seek legal remedy against the action launched against me,” he stated.



Talking to the press, Ghimire interestingly admitted to doing the things he has been accused of doing. But at the same time he added that changing the foot and neck rings of LPG cylinders was a common practice.



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