Political Developments:

First Draft of the Constitution Endorsed:

1. After five days of intense deliberation, Constituent Assembly, on July 7, passed, finally the preliminary draft of the new constitution. The draft will now be published in the Nepal gazette for public consultations. After incorporating suggestions from the public, the draft will, if required, be revised and presented before the CA for final approval. The CA aims to complete these processes and pass the new constitution in one month’s time.

2. To fast – track the drafting process, the CA suspended several clauses of the CA Rules of Procedures. Deliberation on the draft was halted on the first day by the pro-royalist party, RPP-N, which objected to the provision on religious freedom. RPP-N members allowed the discussions to proceed after the major parties agreed not to define it as ‘right to religious conversion’.

3. Prime Minister Sushil Koirala hailed the passage of the draft, describing it as a historic moment and would end all doubts and speculations over the promulgation of the new constitution. UML Chairman KP Oli said that the new constitution institutionalized federal democratic republic and ended inequality and discrimination. While hailing the draft, UCPN (Maoist) Chairman Pushpa Kamal Dahal said that all the parties had sacrificed on some of their known positions to write ‘people’s constitution’

4. He action plan endorsed by the CA, on July 9, to seek public opinion on the draft will come into effect from July 17. Four Madhes-based parties took exception to the action plan stating that only two days are allocated for collection of feedback through public interaction. CA meeting however, endorsed the action plan amid protest and obstruction by Sanghiya Samajbadi Forum Nepal, Tarai Madhes Loktantrik Party, Sadbhawna Party and Tarai Madhes Sadbhawna Party. After the endorsement of the action plan the CA meeting was postponed for indefinite period. According to CA Chairman Nembang, next CA meeting will take place after committee prepares final report collecting feedback of people.’

5. Committee on Citizen Relation and Public Opinion Collection has came up with a 15-day programme to collect public opinion on the draft. Under this, people can register their comments through online, fax and telephone. The Constituent Assembly informed that a total of 41 teams had left for villages with the preliminary draft of the new constitution to people’s feedback. However, lawmakers will leave for villages on July 17. The public interaction programme will be held in each electoral constituency in the presence of law makers.

6. Ministry of Federal Affairs and Local Development has directed all Local Development Officers (LDO) and secretaries of village development committees in all the 75 districts not to leave their work place or take leave during the period allotted for collecting public feedback on the preliminary draft of the new constitution. Issuing a directive on July 12, the ministry directed also asked them to provide necessary support to the law makers and government employees visiting the constituencies to collect public feedback on the draft constitution.

7. The deadline for collecting feedback on the draft constitution is July 22. The Constituent Assembly secretariat has sought Rs. 1.4 billion from the finance ministry for publicising the draft constitution and collecting public feedback. It was argued that the amount was required for hiring helicopters, providing food and other necessities to participants, lawmakers and officials visiting all 240 constituencies across the country. However, the actual amount sanctioned for the purpose is not known.

8. `CA Chairman Subas Nembang has said that the new constitution would be promulgated by mid-August by removing the obstacles and ‘if we fail to protect this achievement, the May 15, 2012 misfortune would repeat. He added that the constitution could be amended later to include unresolved matters and appealed to the disgruntled parties to cooperate in the constitution drafting process. He however, opined that it would be better to settle the demarcation row before the constitution is promulgated.

9. In the meantime, the major parties are planning to amend the Interim Constitution to extend the tenure of the CA until the delineation of federal units is completed. Cross-party leaders are of opinion that their first priority is to decide tentative demarcation within a month, and then promulgate the new constitution. CPN-UML Chairman KP Oli, who is thought to have the toughest stance on the federal set-up, is also flexible to mark the state borders without delay. If there is no agreement among the parties on the state demarcation, they will amend the provisions in the Interim Constitution.

Govt to Approach SC to vacate stay order:

10. The Supreme Court had earlier issued an interim order to the parties to promulgate the constitution only after deciding the state boundaries. Most of the Tarai parties also have the same stance. The government is preparing to file a petition in the apex court for vacating the stay order. Party leaders say this alternative is the best as it respects the SC order and in could create a meeting point between the mainstream and the agitating parties. The preliminary draft of the new constitution also states that the CA will be transformed into parliament after constitution promulgation.

PM Koirala Shown Black flags in Janakpur:

11. Youth cadres affiliated to the agitating Madhes-based parties that are up in arms against the preliminary draft of the new constitution showed black flags to Prime Minister Sushil Koirala in Janakpur, on July 15. Speaking at the inaugural of Shree Ram Temple, Koirala assured that the new constitution would be promulgated by demarcating the border of federal states. He claimed that right of every ethnic group, religion, community, and region would be ensured in the new constitution. He said that no one’s right would be down played and no one’s language, culture and attire would be snatched.

12. Meanwhile, the Mohan Baidya Kiran led Nepal Communist Party-Maoist set ablaze the preliminary draft of the new constitution. Other parties representing the 33-party alliance that the NCP-Maoist is heading were also part of the programme. Separate programmes where the new draft was set on fire were held at all three districts of Kathmandu valley.

Memo Submitted Demanding Hindu State:

13. A team led by former minister for Home Affairs and NC leader Khum Bahadur Khadka submitted a memorandum to CA Chairman Subas Nembang demanding reinstatement of Nepal as a Hindu state. The memorandum also demanded removal of secularism and rights to abstain from religion from the draft of the new statute. It also asks for inclusion of pluralism and parliamentary system in preamble of the constitution. Meanwhile, the fourth largest party in the constituent Assembly, Rashtriya Prajatantra Party-Nepal, organised a nation wide protest programme, on July 7, demanding restoration of country’s Hindu identity.

Janajati Members Demand Rhino as National Animal:

14. Fifty-nine Janajati CA members have demanded that one-horned rhino be declared the national animal of Nepal, instead of the cow that has been proposed. They argued that endangered species as the national animal would be a secular image of the nation, which would also be helpful in preserving it. Janjati CA members have argued that cow is not only the election symbol of a political party but is also associated with a particular religion.

New Budget Presented:

15. Finance Minister Ram Sharan Mahat presented in the parliament (July14), budget of Rs 819.469 billion for the coming fiscal year that starts on 17 July. The government has allocated Rs 74 billion for post-earthquake reconstruction works in the next fiscal year. Apart from focusing on reconstruction, the government has allocated for upgrading Tribhuvan International Airport, completing postal highway, Janakpur airport, developing green cities, promoting solar energy in urban area, Tarai-Madhes fast track, reconstruction of Dasarath stadium, Mulpani cricket stadium, among many others. Under the Constituency Development Programme (CDP) each MP will get Rs 15 million as against the existing entitlement of Re. 10 million each. Social security allowance for senior citizen has been increased by by 50 per cent.

16. `For the first time, Madhes has got special mention in the national budget with specific programmes for the region under a separate heading. Though Madhes leaders still have reservations about the budget, analysts have termed it as a positive and relatively more Madhes-oriented programme. Former Finance Secretary Rameshore Khanal said that if implemented properly, the budget would address the grievances of the Madhesi people about the perceived neglect of the region. The focus on the eight central Tarai districts is based on the findings of Nepal Human Development Report-2014 that human development is at lowest there. The report had stressed the need for more investments in central Tarai as well as mid-western hills where the development indicators are low.

17. The allocation of Rs 98.64 billion for the education sector – the highest of all sectors — for fiscal year 2015-16, is up by over Rs 12 billion compared to current year’s budget of Rs. 86 billion. However, there has been a sharp decline in %age terms from 13.92 per cent to 12.03 per cent. This has been the trend since 2011-12 when the education sector was allocated 17.1 per cent of the total budget. The budget provides for ‘golden handshake’ for the temporary teachers. Around 8,000 temporary teachers who have completed at least five years of service will be eligible for this package. The budget has come up with a programme to start reforms in the schools in partnership with the private schools with a good track record. Concerned with the poor performance of girls in the School Level Certificate examination, the government has also announced at least one residential school for the girls in each development region.

Govt Unveils Policies, Programmes:

18. President Ram Baran Yadav in his address to the Parliament (July 8) unveiled government’s policies and programmes for the coming fiscal year. The government expressed its commitment to hold local body elections within the year, restricting load-shedding to eight hours a day in the winter months, develop 12 districts as pocket areas for paddy cultivation, adopt zero tolerance against corruption, reconstruction of the earthquake – devastated areas and boosting the stagnant economy. However, opposition UCPN (UML) and RPP-N leaders criticized the government’s policies and programmes for lacking new initiatives and being devoid of specific programmes for the earthquake-affected people. UCPN(Maoist) Chairman Pushpa Kamal Dahal said that these policies and programmes were too conventional and had nothing new.

New Chief Justice of Supreme Court Appointed:

19. Justice Kalayan Shrestha has been appointed as the new Chief Justice of the Supreme Court as per recommendation of the Constitutional Council. President Ram Baran Yadav, on July 8, administered the oath of office to the newly appointed Chief Justice at the Presidential Secretariat. Immediately after taking oath of the office, CJ Shrestha talking to media, asserted that the judiciary will never engage itself in politics and also asked the political parties not to interfere in the judicial matters. He said that there should be no competition between the three state organs organs of the state namely the judiciary, legislature and the executive. CJ’s remarks concerning politics has come at a time when leaders of major political parties, following the Supreme Court ruling to stay the 16-point agreement, have been blaming the judiciary of interfering in political matters.

No Need for Constitutional Court, says Supreme Court:

20. `The full bench of the Supreme Court, presided over by the Chief Justice, has requested the Constituent Assembly not to incorporate the provision for Constitutional Court in the new constitution. A written request has already been forwarded by the apex body to the Constituent Assembly secretariat. The preliminary draft of the new Constitution incorporates provision for constitutional court to resolve disputes arising between local, federal and central courts for the next ten years. This was against the international practices and against independence of Judiciary.

External Relations:

NCP (Maoist) Submits Memo At Indian Mission

21. Nepal Communist Party (Maoist) headed by Mohan Baidya Kiran submitted a memorandum at the Indian Embassy in Kathmandu demanding correction in the joint statement issued by India and China following Indian Prime Minister Narendra Modi’s last visit to China where the two sides agreed to enhance their border trade through Lipu Lekh (Nepali territory).

Bhutan:

Internal Developments:

Attorney General Tenure to be Co-terminus with Govt’s:

1. The legal fraternity has questioned the five-year tenure for Attorney General, as provided in the Office of the Attorney General’s bill 2014 endorsed in the last session. Former Chief Justice and the Constitution Drafting Committee Chairman Lyonpo Sonam Tobgay in his book ‘The Constitution of Bhutan Principles and Philosophies’ has stated that the Attorney General is a political appointee and his term in office should end with the government’s. Therefore, it is argued by the legal experts, that the provision of the bill could be rendered as unconstitutional, and needs to be amended.

Courts should Address Land Disputes: SC

2. To ensure speedy resolutions of land related disputes, the Supreme Court Chief Justice recently instructed courts to accept four types of land related cases without asking to route them through the National Land Commission. The Chief Justice’s order, issued last month, stated that land cases related to sale or purchase, inheritance, and easement of land could be directly submitted to courts. Those dissatisfied with the decisions of the National Land Commission’s Dispute Settlement Committee could appeal against the decisions for judicial review. Land Commission dealt all land cases since the enactment of Land Act- 2007

External Relations:

Decision on Joining WTO Delayed:

3. The Prime Minister Tshering Tobgay admitted that the question of joining World Trade organization (WTO) would be taken only after the cabinet receives the Foreign Ministry’s recommendation. The Prime Minister said that the Foreign Ministry was coordinating among all stake holders before finalizing its recommendations to the government. The cabinet would also hear views from experts without preconceived ideas. Opinion has been divided over the issue. Bhutan was granted an observer status to the WTO in 1999 and almost acceded to WTO in 2009, but the process was not finished. One of the primary reason for this was WTO agreements were at variance with Bhutan’s philosophy of Gross National Happiness (GNH).