Authorities to step up pace of action
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KATHMANDU, MAY 24 - The Finance Ministry on Sunday asked eight agencies including Nepal Rastra Bank, Insurance Board, Securities Board of Nepal and Department of Revenue Investigation (DRI) to expedite action against Unity Life International.
This comes after a committee formed by the government submitted its report to Finance Minister Surendra Pandey.
The committee called for banning networking business as no law allows it. It also called for action against ULI’s promoters.
The panel headed by Ram Mani Dawadi of DRI urged action as per various laws including Bank and Financial Institution Act, Securities Act, Anti-Money Laundering Act, Company Act, Consumer Welfare Act and Revenue Leakage related Act and Civil Codes.
The committee said ULI ran illegal banking services like collecting deposit without license from Nepal Rastra Bank (NRB). It also ran illegal insurance schemes without license from the Insurance Board.
Since little money was deposited despite collection of Rs 9.75 billion from members, the probe panel smelt a money laundering rat. Going by 650,000 memberships, ULI’s deposits ought to be Rs. 10 billion if Rs. 15,000 was collected from each individual. So far, only Rs. 230 million has been unearthed.
DRI sources said data in the laptops of ULI chairman Kashi Ram Gurung and Managing Director Bishnu show ULI sent millions of rupees to Hong Kong and Israel. Some more millions were dispersed in the name of hospitals, department stores and advance payment to employees within the country.
Fina Cooperative and its promoters (Unity officials) also should face penalty for enabling Unity to collect deposit on behalf of Fina as the collected amount was deposited not in the name of depositors but in Unity’s name.
Unity Life International may also be penalised under the Company Act for financial and networking businesses not mentioned in its memorandum of articles.
The panel said it suspects the company evaded taxes and introduced share related schemes without approval from Securities Board of Nepal.
The committee said ULI even influenced the Ministry of Foreign Affairs and Home Ministry to tell Nepalese embassies in Gulf countries and District Administration Offices to provide support to its activities abroad.
Posted on: 2010-05-24 08:10
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