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Ncell in hot soup

The Himalayan Times
22 December 2023

Ncell in hot soup

Ncell, the private sector telecom giant, has again come under scrutiny after its parent company, Axiata Group (AG), announced on December 1 that it was leaving Nepal by selling its stake in the company citing increasing challenges in the operating environment. It blamed the current conditions of unfair taxation and regulatory uncertainties, which have directly affected its longer sustainability in the country. Sensing suspicion of potential tax evasion, the Inland Revenue Department (IRD) has initiated an investigation into its exit. The controversy surrounds Axiata's sale of its 80 percent stake in Ncell to Spectrlite UK for a seemingly undervalued amount of US$ 50 million (Rs 6.5 billion). In the meantime, the government has formed a high level investigating committee to thoroughly probe the doubtful transactions and submit its finding to the government within 30 days “Government forms panel to probe sale of Ncell shares, considering procedure unusual: PM Dahal” (THT, 19 December , Page 1). It remains to be seen whether the committee will be able to locate the irregularities, if any, in the deal and punish the concerned culprits accordingly

 

It seems that the Nepali Congress (NC) has now realized that the provision of the proportional representation (PR) system in the existing constitution has been a drawback for any political party to secure a majority to form a government “Single political party cannot obtain majority due to electoral system” (THT, 18 December, Page 1). Nepal adopted a mix of the first-past-the-post (FPTP) system and proportional representation (PR) system as its electoral system in order to make the legislature inclusive. The PR system was especially adopted to ensure the representation of the marginalized and backward castes, class, gender and communities in the political mainstream. However, the political parties have grossly misused this system for their political benefits. Also, this system has compelled the parties to align in order to form a government. Time has now come for the big parties to amend the constitution accordingly.

Rai Biren Bangdel

Maharajgunj

 

 

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