<figure><img width="1200" height="1584" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161148/636d1dae9c7e80680e0af3cfjpeg.jpg" alt=""/><figcaption>Illustration: BHANU ACHARYA/NEPALI TIMES</figcaption></figure>During the 2017 elections, Baburam Bhattarai’s Naya Shakti Party propped up the Nepali Congress (NC) elsewhere across the country while seeking support in Gorkha, where Bhattarai himself would run, and Rasuwa where his party’s Prem Tamang was contesting.
But when it came time to register his candidacy, Tamang withdrew from the MP race and chose to run for state assembly instead, putting his support behind billionaire businessman Mohan Acharya, the bankroller of the NC.
Read also: <a href="https://www.nepalitimes.com/here-now/purchasing-power/" target="_blank" rel="noopener noreferrer">Purchasing power</a>, Ramesh Kumar
Acharya had registered his candidacy after convincing party chair and prime minister Sher Bahadur Deuba, presumably with money being exchanged, to let him run for office.
The construction <a href="https://archive.nepalitimes.com/article/nation/bulldozing-democracy-in-nepal,4184" target="_blank" rel="noopener noreferrer">contractor who spent a lot more money</a> while campaigning, would go on to win Rasuwa. A year later during an interview, Bhattarai himself accused his party colleague Tamang of selling out his candidacy to Acharya.
Acharya’s opponent was Janardhan Dhakal, another construction businessman who had the UML ticket. The race in Rasuwa was therefore a battle between who could spend more money. Both candidates hosted lavish parties, had extravagant motorcades, and distributed cash to buy vote banks.
What happened in Rasuwa in 2017 is a reflection of <a href="https://www.nepalitimes.com/latest/the-business-of-politics-in-nepal/" target="_blank" rel="noopener noreferrer">Nepal’s current electoral system</a> — competent candidates have no chance against powerful tycoons who have bought election tickets from party bosses.
Even as they spend extraordinary money to woo voters, Nepal’s political parties have failed to be transparent about their funding in official reports.
Donations from businesses are the primary source of funding for all political parties, and that is where the rot sets in.
However, the amount of financial support received from well-wishers, supporters and businesses are not broken down in the accounts of any of the parties. In fact, they are not mentioned at all.
Read also: <a href="https://www.nepalitimes.com/latest/is-democracy-too-expensive-for-nepal/" target="_blank" rel="noopener noreferrer">Is democracy too expensive for Nepal?</a>, Laxmi Basnet
The fact that all financial assistance is provided in cash and not through the banking system makes it easy for parties to circumvent institutions that oversee election management, even though The Political Parties Act 2017 stipulates that any transactions above Rs25,000 should go through the banking system along with the details of donors.
There is a similar lack of transparency when it comes to details about any fixed assets in the parties’ audit report. In many cases, private donors pick up the tabs for the renovation of party offices just to be above the board, like what the NC’s Umesh Shrestha did to get himself appointed minister by Prime Minister Deuba.
<a href="https://www.nepalitimes.com/here-now/the-business-of-politics-undermines-nepals-democracy/" target="_blank" style="font-size: 15px; letter-spacing: 0.01em;" rel="noopener noreferrer">Nepal’s politico-business nexus</a> began during the post-Panchayat era after the multiparty system encouraged collusion and quid pro quo. This co-dependency between business and politics became more embedded in subsequent elections.
“When political parties have to spend money to win elections, they start cultivating businessmen and then it is you scratch my back, I’ll scratch yours,” explains economist Keshav Acharya.
Over the years, watching from the sidelines was not enough, and Nepal’s rich directly entered politics as the country began its transition into a federal republic following the end of the Maoist conflict.
Former Finance Secretary Rameshore Khanal resigned in 2011 after Finance Minister Bharat Mohan Adhikari sought the counsel of <a href="https://www.nepalitimes.com/here-now/nepals-richest-man-in-the-pandora-papers/" target="_blank" rel="noopener noreferrer">industrialist Binod Chaudhary</a> during the budget formulation process. He says Nepal’s political parties are at present governed not by institutional systems but the will of individual leaders who mobilise money by helping businessmen launder theirs.
“This practice was introduced by Girija Prasad Koirala in the NC and has been continued by both UML Chairman K P Sharma Oli and Maoist Chairman Pushpa Kamal Dahal,” says Khanal.
Indeed, public sector enterprises like Harisidhi Brick and Bhrikuti Paper Factory were privatised under the first elected government led by Girija Prasad Koirala, and turned into prime real estate.
The Ministry of Finance refunded value-added tax (VAT) to entrepreneurs on consumer goods for almost a decade after 2008, essentially putting VAT paid by Nepali citizens into the pocket of businesses, prompting questions of policy irregularities by the IMF.
Similarly, other NC leaders like former finance minister Ram Sharan Mahat formed the Tax Commission in 2014 which gave tax cuts worth Rs21 billion to big businesses, the case related to which is still pending in the courts.
More recently, Finance Minister Janardan Sharma is alleged to have made policy changes to benefit special interests, like the Shanker Group, through a bill to replace the budget brought by the Oli government.
Of late, businesses have also been actively involved in the infighting within parties that has characterised recent Nepali politics.
The photo of NCP co-chairs K P Oli and Prachanda having lunch with <a href="https://www.nepalitimes.com/editorial/red-rice/" target="_blank" rel="noopener noreferrer">red rice at the home of business tycoon Durga Prasai</a> to discuss party unity went viral and prompted widespread ridicule.
The two leaders also held several discussions at the residence of construction contractor Sharada Prasad Adhikari who was untouchable because of his proximity to Dahal, as well as at homes of businessmen like Niraj Govind Shrestha and Ajeya Raj Sumargi. Sumargi often acts as a frontman for Dahal’s business dealings.
Businessmen like Capt Rameswar Thapa and Moti Dugar were actively involved in negotiations related to party unification between UML leaders K P Sharma Oli and Madhav Kumar Nepal, who often met at their private residences.
Similarly, Oli's name has been linked to the Yeti Group, and the <a href="https://www.nepalitimes.com/opinion/so-far-so-good/the-silent-skies/" target="_blank" rel="noopener noreferrer">death of its founder Ang Tsering Sherpa</a> in a helicopter crash in 2019 was a big blow to the former Prime Minister who had close personal dealings with him. Sherpa served as Oli’s fixer and was rewarded with coveted real estate and other deals for his conglomerate.
Entrepreneurs who transition into politics do so with the intention of influencing the state machinery to get business-related benefits. Moreover, interactions between business and politics are not limited to Nepali figures, as evidenced by the audiotape of Krishna Bahadur Mahara asking a Chinese businessman for Rs500 million on behalf of the Maoists during Constituent Assembly elections in 2013.
To be sure, politicians have always been making licensing and policies easier at the behest of banking, insurance, medical education, telecommunications, as well as in the stock market, allowing a select few to take advantage of the resulting decrease in competition.
Congress leader and former vice-chairman of the National Planning Commission Govinda Raj Pokhrel notes that money has become the lubricant in Nepali politics. In fact, voters themselves seem to seek out leaders who can take care of their financial interests.
“Unless we clean up our democratic system, our democracy is headed to the edge of a cliff,” he says.
<a href="https://archive.nepalitimes.com/regular-columns/guest-editorial/Electoral-reform,1083" target="_blank" style="font-size: 15px; letter-spacing: 0.01em;" rel="noopener noreferrer">Former Election Commissioner chief Bhoj Raj Pokhrel</a>, in his recent article 'Political Finance Management: Opportunities for Electoral Reform' has proposed ideas for electoral reform, including the provision of grants to political parties to manage election-related expenses.
This proposal is not a new concept. Past governments have discussed this and former Finance Minister Prakash Chandra Lohani even made a related proposal in the 2004 budget.
UML leader Surendra Pandey argues that if political financing is to be made transparent, the government should provide financial support based on the votes received by each party.
Former Finance Secretary Rameshore Khanal argues that political parties should seek donations from Nepali citizens, which would consequently make them more accountable to the public.
Achyut Wagle, a professor of economics at Kathmandu University, notes that while government funding for parties is a viable option in an ideal democracy, it is questionable whether a country like Nepal can do it honestly.
Says Wagle: “It is more important to have transparency in political financing. Selling political positions for money has become the norm, and we need to ensure a democracy where businessmen cannot buy their way to power.”

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1084x550

The business of politics

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5769c7e80680e0736c9jpeg.jpg" alt="" width="1660" height="1229"/><figcaption>Ang Tshiring Sherpa, Nepal's most innovative and self-effacing tourism entrepreneur in Marpha in 2016. Photo: LISA CHOEGYAL</figcaption></figure>One side effect of the silent skies over past months, other than tipping tourism and aviation into freefall, is that Nepal’s air safety record is greatly improved.Last week marked the sombre anniversary of the Thai International crash <a href="http://archive.nepalitimes.com/news.php?id=12597#.XzD6Booza70" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D12597%23.XzD6Booza70&amp;source=gmail&amp;ust=1597133076295000&amp;usg=AFQjCNGI_x30GhvRWctX7wr7jB1g2gzi7Q">in heavy monsoon rains 28 years ago</a> which took the lives of so many Nepali families, friends and residents.Almost exactly two months later, a PIA Airbus piled into the opposite end of the Valley at Lele, the <a href="http://archive.nepalitimes.com/news.php?id=5616#.XzD6iYoza70" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D5616%23.XzD6iYoza70&amp;source=gmail&amp;ust=1597133076295000&amp;usg=AFQjCNHyUzWCPsevoR4oEf4zHHU-B_xPbA">nation’s worst air disaster</a>. This time, 167 souls were lost, mostly tourists arriving at the beginning of the season -- so close that the specialist international forensic team were still in-country analysing the confetti-sized Thai aircraft wreckage.Exasperated with devastation and grief at yet another catastrophe, I volunteered with the British Embassy to help look after distraught relatives of the PIA victims.Nepal’s dramatic Himalayan terrain and fierce weather patterns make a deadly combination. The deplorable data confirms that the dozens of air accidents since the1992 double carnage occur <a href="http://archive.nepalitimes.com/news.php?id=2412#.XzD544oza70" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D2412%23.XzD544oza70&amp;source=gmail&amp;ust=1597133076295000&amp;usg=AFQjCNH2LGp7o4Cs_euspbcs3o_agoB1dA">mostly during the turbulent monsoon months</a>, and involve helicopters as well as fixed-wing aircraft, both international and domestic flights. Usually the pilots have something to do with it and almost all are weather-related, regardless of the season.Early last year <a href="https://www.nepalitimes.com/latest/helicopter-carrying-tourism-minister-crashes/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/helicopter-carrying-tourism-minister-crashes/&amp;source=gmail&amp;ust=1597133076295000&amp;usg=AFQjCNFk0ky2IPjMzTYcM76aAyS7XtiJiQ">we lost an inspirational tourism minister</a> when the chopper he was travelling in tried to take off from a socked-in hilltop temple intending to dive into clear weather, got caught in a freak updraft, and was <a href="https://www.nepalitimes.com/banner/the-last-journey/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/the-last-journey/&amp;source=gmail&amp;ust=1597133076295000&amp;usg=AFQjCNFC_RMwxp-AlbE3AHGhvyGO9gH4iQ">slammed sideways against a cliff</a>. There were no survivors and the industry is still reeling from the tragedy.Along with the minister was Nepal’s most imaginative and daring tourism entrepreneur, Ang Tshiring Sherpa, managing director of Yeti and Tara Airlines amongst his many other ventures. It should never have happened, of course. Known to be fanatic about safety, on that fateful day, 27 February 2019, Tshiring allowed his usual strict flying rules to be compromised.It is still hard to accept the chill reality that Tshiring is not coming back. He was only 54. Never again would he drop by our house sitting under the garden cherry tree or casually greet me as he crossed Dwarika’s courtyard to lunch. Never again would I be summoned into his expansive office, glowing with carpets, polished wood and glass, and asked my advice in his serious calm manner.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5799c7e80680e0736cajpeg.jpg" alt="" width="640" height="480"><figcaption> </figcaption></figure>Never again would I see his wry sideways smile as he gently rubbed his stubbled head in that curious distinctive way, attentive, nodding, self-deprecating. Never again would we dine together off the candle-lit polished tables at Le Sherpa restaurant with clients and relatives he wanted me to meet.Tshiring never wasted words, and I learned to listen carefully. Not once did I see him riled or angry, or indeed anything but thoughtful and measured. Even when I could tell he did not agree with my recommendations -- to refocus the family brand, consolidate companies, or add value by improving service standards -- he was unfailingly polite and patient. “Thank you, madam,” he would smile. He always liked to call me madam, with irony, no doubt.Tshiring was Nepal’s most innovative and wildly courageous tourism operator, striding fearlessly into deals with a sure instinct and confidence, trusting his powers of persuasion. His office team of competent henchmen and array of associated family members managed his Kathmandu-based empire of airlines, travel agencies, hotels, restaurants, remote lodges, wildlife camps, trekking and mountaineering companies.It was part of his quiet charm that he did not always get things right, had trouble navigating family politics, learned from mistakes, courted controversy and often moved in mysterious ways.I admired his business panache, but was most captivated by Tshiring’s persuasive rags to riches story, his ascent from humble origins in the Himalayan hamlet of Pangom to creator of Nepal’s major tourism conglomerate.“Let’s make a film about you,” I suggested. The narrative sweeps from a Solu Khumbu kitchen boy, the lowest rung of a trek team, running away to Kathmandu with Rs300 in his pocket (the exact amount is debated), to building the Yeti Group. He out-manoeuvred opponents with canny golf course diplomacy at Gokarna and invented champagne helicopter breakfasts with a view of Everest.In between, as a Sherpa sirdar he led treks throughout Nepal and during the summer worked in French alpine chalets. With typical modesty Tshiring was reticent about a movie, but liked the idea of a book for his extensive and extended Sherpa family.Mindful of those less fortunate than himself, philanthropy motivated many of Tshiring’s travel ideas interwoven with commercial interests. Every air ticket sold planted a sapling and each boarding pass donated five rupees to one of his charitable CSR causes. He embraced community development, and <a href="https://nepalitimes.atavist.com/rebranding-tourism-with-remodelled-plane-" data-saferedirecturl="https://www.google.com/url?q=https://nepalitimes.atavist.com/rebranding-tourism-with-remodelled-plane-&amp;source=gmail&amp;ust=1597133076296000&amp;usg=AFQjCNHKMIrxHm64H7Kug8jxiAInJaXirA">painted the Great Himalaya Trail logo onto his mountain aircraft.</a>He proposed a STOL airstrip at Lake Phuksundo to benefit the locals, homestays to restore the crumbling village of Braga, and a string of high altitude ecolodges to bring tourism to new areas of the Himalaya. Pilgrimage hotel projects ranged from the Lumbini Hokke at Buddha’s birthplace to Mokshain Jomsom, rising after the earthquake for Hindus visiting Muktinath. He never forgot his origins nor his spiritual roots.In 2016 at Chuksang we sat on plastic chairs in deep shadow under the apple trees, breakfasting on sweet tea and Tibetan bread. Tshiring had joined our recce to introduce high-end tourism to Mustang, quietly sharing his vision at a simple local lodge. His gentle demeanour fitted in anywhere, belying his relentless energy and appetite for business.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba57b9c7e80680e0736cbjpeg.jpg" alt="" width="640" height="480"><figcaption> </figcaption></figure>Early one blustery morning in 2010, bad weather defeated us from reaching Tsum, whose remote pristine landscape he had wanted to show me, but instead the  helicopter dropped us into Langtang where he was working with the community to construct a trekkers’ lodge.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba57d9c7e80680e0736ccjpeg.jpg" alt="" width="640" height="480"><figcaption> </figcaption></figure>It was on that trip that I realised how cautious Tshiring was about flying, obsessed with Nepal’s air-safety, committed to carbon neutralising his airlines, and campaigning for UN and <a href="https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/&amp;source=gmail&amp;ust=1597133076296000&amp;usg=AFQjCNHg1hAc6M4zRgeZRSgG6ZTaTUFoxQ">EU certification</a>. A near-miss in Lukla involving his brother Sonam shook him greatly.The seventh day ceremony was in full swing when I arrived at his home, with a vast gathering of mourners and monks, the family weary with sadness amidst the incense and chanting.“He looked after me so well in life, I must look after him in death,” his wife Chanda smiled bravely. Nyima, his sister married to Tenzing Norgay’s grandson, took my hand and led me upstairs to the prayer room, wringing  her hands in sorrow and denial.Destiny had consigned Nepal’s most self-effacing tourism magnate to become yet another statistic in our <a href="https://archive.nepalitimes.com/regular-columns/So-far-so-good/never-fly-clouds,855" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/regular-columns/So-far-so-good/never-fly-clouds,855&amp;source=gmail&amp;ust=1597133076296000&amp;usg=AFQjCNG8Mpc2W6BBxVKvs3lAIAUDIw7g6Q">wretched record of flying</a> in the mountains.

ang-tshiring-sherpa

The business of politics

The silent skies