Man who tampered with 15,314 LPG cylinders goes unpunished

KATHMANDU, May 10:

· Lawmaker Ram Kumari Yadav died on August 16, 2010 from severe burns resulting from an accident caused by leakage in a liquefied petroleum gas (LPG) cylinder.

· Hospital statistics show that five people lost their lives and hundreds others suffered serious burns due to gas-related accidents in 2010.

· Two houses caught fire in Paknajol, Kathmandu in June 2010 in a gas-related accident and the owners suffered huge loss of property.

· “Companies walk away accusing consumers of poor handling. But we suspect tampering with the foot ring (attached to the gas cylinder base) is one major reason behind such accidents”, NOC chief Digambhar Jha was quoted by Republica as saying after lawmaker Yadav´s death.

These facts make clear that in tampering with and refitting the neck and foot rings of 15,314 LPG cylinders of other gas companies, Nepal Petroleum Trade Links (NPTL), a Biratnagar-based company, has committed two serious crimes: it has exposed consumers to grave risk and also hampered the business of other gas bottlers.[break]

Sadly, Sunsari District Administration Office (DAO) and the regulators concerned have not yet shown seriousness about punishing this biggest-ever wrongdoing exposed in this sector. “NPTL´s action flouts all pertaining laws, including the Standards Act, Nepal Oil Corporation (NOC) regulations, Consumer Rights Protection Act and Competition Law,” said NOC Spokesperson Mukunda Dhungel.

However, all that NOC has done is stop issuing gas to Sugam Gas Company (SGC) -- a sister concern of NPTL under whose ownership NPTL was converting all those confiscated cylinders.

Even though NOC regulations say that tampering with the foot and neck rings is a grave crime and puts consumers at risk, Dhungel said existing NOC by-law does not empower it to take further action against wrongdoers.

“Further action must come from the Department of Customs (DoC) and Bureau of Standards (BoS),” said Dhungel, shifting the blame to other regulators.

DoC and BoS officials in Kathmandu said that their officials in Biratnagar are coordinating with the DAO for action against NPTL promoter, Shiva Prasad Ghimire.

However, contrary to the demand of consumer activists like Jyoti Baniya to immediately arrest and start action against Ghimire, DAO Sunsari just issued a letter to Ghimire on Saturday to be present at the office within three days.

DAO officials claim they don´t know the whereabouts of Ghimire, who owns SGC in Dading, two petrol pumps in Sunsari and more than a dozen petrol pumps nationwide. But Republica caught up with him by cell phone at 8 p.m. in Kathmandu. He said he was busy at a meeting and asked to call back half an hour later. He did not pick up the phone after that.

Although the DAO has shut down NPTL since Saturday, officials that coordinated the raid are raising questions over the intentions of DAO officials, particularly CDO Ram Prasad Thapaliya, for the laxity shown.

“We can finalize action against Ghimire instantly. However, the CDO - whose instruction is crucial for taking the decision - has not yet given us time,” said Shashi Bhushan Yadav, chief of Bureau of Standards (BoS), Biratnagar.

So much so that Yadav, who coordinated the raid that dug up the wrongdoing by NPTL, said that Thapaliya´s ´strange irresponsiveness´ has prevented them from handing over to the DAO even the first investigation report on the raid.

Sabarmal Agrawal, president of Nepal LPG Industries Association, also expressed surprise over slow action by the DAO. “It might act slowly, but we will not let the wrongdoer walk away free,” he said.

Meanwhile, sources at the DAO disclosed that Thapaliya was currently consulting lawyers outside of the office. Their hunch is he´s discussing ways to weaken the case.

Thapaliya denied this. “I could not meet the raid team because of my tight schedule. All I can say now is NPTL will be punished. We will decide Tuesday on the action to be taken,” he said.

What about cylinders already in use?

Although the authorities concerned are pushing for action against NPTL, what has remained out of focus are the faulty cylinders that SGC has already distributed in the market.

Although NOC did not disclose the volume of gas SGC was selling, gas bottlers said it has around 30,000 cylinders in the market. “Given the case that has surfaced, we cannot say those were not tampered with,” admitted Dhungel.

Dhungel´s statement spells alarm. Under the circumstances, Agrawal places the responsibility of replacing the cylinders on the shoulders of NOC because ´its license to SGC was also a warranty for the cylinders and gas´.

Dhungel maintained silence on the issue. “We will need a decision from the board on this,” he stated.

Refitting of foot and neck rings by cutting off the original ones reduces the capacity of the cylinders to withstand pressure, thereby raising the risk of accidents. Besides, if the new rings are heavier than the originals, the company can get away with refilling less gas than the stipulated 14.2 kgs.

Besides, conversion of cylinders of other companies not only causes substantial financial loss to those companies, but also cuts down their market share. This is anti-competitive practice and hence against the law.

(With inputs from Amar Khadka in Itahari)