So, here’s the other article, the one that came out in September, the one I made a reference to in the other Sumargi or Kumargi? post.
This one talks about where the three billion rupees may have come from.
This one also provides a much better picture of how things work in Nepal and therefore don’t work the way they should.
Plus, to reiterate what the title means for the benefits of those who don’t understand Nepalese….
Sumargi means “someone on the right path,” and Kumargi, “someone on the wrong path.” Sumargi is the name of the central character in both the stories.
Translation of this article was also done by the same person. You can find the original Nepalese article here, and an image of the article here. (Hyperlinks are mine.)
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The mystery behind Prachanda depositing three billion [rupees] in a Swiss bank solved
Kathmandu, 21 Bhadra [6 September, 2014]
The mystery behind amassing, in the last few years, over three billion rupees [over US$30 million], through shady business deals and depositing the funds in a Swiss Bank account, by Ajay Parajuli known as Sumargi, a one time supplier of chemicals and sacks to Hetauda Cement Factory and a small-time contractor, has been solved.
Sources claim that after the illegal funds held in Indian banks started becoming unsafe, Sumargi, a business partner of Unified CPN-Maoist Chairman Pushpa Kamal Dahal, transferred them to the Swiss bank.
Money extorted by Unitifed CPN-Maoist [the political party that waged a 10-year civil war in the country from 1995-2006] during the insurgency, including funds raised in the name of combatants, Dahal had been getting Sumargi to deposit in the Swiss Bank. Similarly, a story making the rounds at Ncell [the biggest private telecommunication company in Nepal] is that parts of his earnings from the three-billion April 2012 deal between Ncell and Sumargi’s own Nepal Satellite Company found its way to the Swiss Bank.
Sumargi only has 25% share in the Satellite Company, while the remaining shares are in the name of Ncell’s major investor TeliaSonera’s Asia Holding. According to a Director at Nepal Telecommunication (NTC) [the government-run telecommunication company], discovering the illegality of NCell operating two companies as a cross-holding under one roof at Krishna Tower, even though they began investigating NCell, it had to be halted due to undue pressure from the Maiost Chairman Dahal.
The file of documents Sumargi submitted to NTC and Company Registrar’s Office while selling the majority of Satellite Company share to NCell have all been made to disappear. The NTC Director also added that when a case was filed against Sumargi alleging illegally amassing wealth, he managed to get all the documentations related to the complaint about the share transaction destroyed.
A source claimed that Sumargi succeeded in destroying the confidential papers by threatening some NTC’s official with going public in ABC television and Naya Patrika [a Nepali Daily], about the manner in which the Satellite Company had acquired their license from NTC. The Satellite Company had acquired the license to operate Hello Nepal, a mobile phone service provider, from NTC by a triad of Non-Resident Nepali Upendra Mahato, Sumargi and Dahal, through means that put NTC in a very difficult and awkward position.
To avoid paying the license renewal fees to NTC in the upcoming year 2071 [2014-15], amounting to 20 billion rupees [more than US$200 million], as per the strategy hatched by the foreign telecom mafia, Chairman Dahal and himself, Sumargi had sold 75% of the Satellite Company’s shares to Telia Sonera.
Sumargi essentially bought the license to operate Hello Nepal in Satellite Company’s name for peanuts and then sold 75% of its shares to TeliaSonera for three billion. The success of this traitorous conspiracy against the nation has meant that Ncell is able to continue deceiving and robbing the people, and yet no authority has taken any action against them.
Update Dec. 29, 2017
The following update to the story was published on Kantipur today.
Update Sept. 6, 2018.
According to Forbes, Sumargi now is the 4th richest Nepali of 2018.
Update Sept. 16, 2018
Here are some more articles I came across just today. NRB to seek more details from Sumargi was published in The Kathmandu Post on Feb. 2, 2016. Then a serious of three articles in also The Kathmandu Post within ….days the beginning of this year. Maoist leader asks govt to investigate Sumargi’s case was published on January 19, 2018. Probe into Sumargi’s property in 2nd phase: Minister Rana was published just two days later, on January 21. And DMLI starts detailed probe in Sumargi case was published on January 24.
According to the January 24 article,
Sumargi and his companies have so far received $118 million (approximately Rs12.1 billion) and 380,000 pounds sterling (around Rs 52.6 million) from “suspicious companies” based in the British Virgin Islands, Cyprus, Egypt and Belarus, shows a government report.
This money, most in the form of loans, started entering the country as early as January 2008 via Nabil Bank. Nepal Invest-ment Bank Limited has also been used for fund transfers since, which continued until November 2013. Of the money that entered Nepal, only $28.5 million (approximately Rs2.9 billion) forwarded to the accounts of Nepal Satellite Telecom and Mukti Shree Cement has been frozen at the NIBL in the absence of necessary documents. Sources said that a portion of the funds that landed at Nabil Bank has also been frozen, but the Post could not confirm the amount.
The beneficiaries of 97 percent of the funds are four firms owned by Sumargi—Nepal Satellite Telecom, Mukti Shree Pvt Ltd, Mukti Shree Cement and Mukti Shree Telecom. But only Mukti Shree Cement and Nepal Satellite sought permission to bring in foreign investment, that too for mere $30.9 million (approximately Rs3.2 billion).
This means $87.1 million and 380,000 pounds (approximately Rs9 billion) were brought in without permission from the authorities.
