Inside job ?
On Nov 15, 2018, Madan Kharel, the then newly appointed Executive Chair of the Nepal Airlines Corporation (NAC), held a press conference flanked by his deputies, including Managing Director Sugat Raj Kansakar. The press conference was called to address the White Paper issued by the NAC management on the national flag carrier’s financial health and long-term plans.The media basically carried the pronouncements verbatim. No critical questions were asked and there was no effort to even check the math presented in the event. The message that came out the press conference was clear: The NAC is on the brink of bankruptcy and the government would have to inject cash to bail it out.
The timing of the press conference, which came hot on the heels of reportedly advanced discussions with Ethiopian Airlines for a strategic partnership, was also suspect. To be fair, the Tourism Ministry itself has recommended that the government inject Rs 20 billion as part of its plan to restructure the NAC. While the NAC’s financial health isn’t great, it does earn significant revenue from ground handling alone—about Rs 3.5 billion annually, the same as the total annual repayments on its four Airbus loans. That is a significant cushion.
The optics of the press conference has hurt both the NAC’s attempts to find a strategic partner and its branding efforts among customers. Who would want to invest in a company that is about to file for bankruptcy? Even if that was not the intention, that has been the effect. The airlines business, like any other, revolves around managing perceptions. Would passengers want to fly in an airline if its management is openly talking about its potential bankruptcy? Even on a good day, the NAC is known for delaying or cancelling flights, or worse, grounding its fleet.
This week the NAC has told its creditors it cannot service its quarterly installments
An open secret
This week the NAC has told its creditors it cannot service its quarterly installments due for January and has asked for an extension. This despite no significant reduction in its total earnings in December-January. Is this another stunt to kill two birds with one stone: force the government to inject cash while deterring any potential strategic partner?
There are plenty of reasons to doubt the NAC management’s willingness to bring in a strategic partner; a new partner means a change in the management philosophy and style. Would the current appointees really give up their lucrative perch? A perch that provides them with all kinds of perks and privileges without corresponding expectations and certification of a good performance. Even without bringing in a strategic partner, what plagues the NAC is an open secret: mismanagement.
Two core issues
The national flag carrier’s administrators, most of whom are political appointees, have been unable and unwilling to do what is required of them to make the corporation profitable. There are two core issues: overstaffing and mismanagement of the fleet and flight schedules. Even if laying off excessive staff is politically touchy given how unionized government entities are, the NAC should still make profits just by flying the four new Airbuses 18 hours each. And there is the additional cushion from the ground handling business. This combined with a strict fleet maintenance regime would address its perennial image problem by ensuring minimum delays or cancellations—thus increasing its market share. The NAC flies in such profitable destinations that there is no reason its flight occupancy should be at 50 percent, other than its image problem of being extremely unreliable.
For both potential partners and customers, the press conference perpetuated that perception, albeit in different ways: for investors, it amplified the risk factors and for customers, it gave them another reason not to fly with the airline. Increasingly, the NAC’s problems appear more like internal sabotage than just corruption and incompetence.
Playground bullies
I’m pretty much an introvert and it took me decades to speak up for myself and against injustice. But a couple of weeks ago I really had enough. In my regular haunt in Lazimpat, where I eat at least twice a week, mainly breakfast but also lunch, a woman came in, wrapped up in a down jacket, hood up, sunglasses on, carrying two huge bags of shopping. She sat by the window so I didn’t hear what she ordered but I did heard her ask for water, then a spoon, then the wifi password—okay so far; pretty basic stuff. She continued to ask for a whole list of other, pretty unnecessary, items from the busy staff. When her food arrived my attention was drawn again by her loud voice. The food was just ‘not right’! This was ‘not the way to make pizza at all’. The pizza had too much cheese on it! Well, first, who says this? Ever? Second, why order pizza if you don’t like cheese? The waitress offered to get her something else. In reply to her question, the waitress said, no, she would not have to pay for the second dish, only the pizza. When the second dish arrived, again she was shouting loudly across the room that she didn’t like it.
She suggested the chef be sacked to let ‘one of the many unemployed in Nepal take his job’. One of the many, who ‘could make much better food than him’! The young waiter and waitress were looking quite helpless now and this was all I could take. I marched over to her table and told her, “if you don’t like the food, fine, it’s down to personal taste, but there is no need to announce loudly across the restaurant. You could go and discuss with the chef; why blame the waiters?” I also pointed out that the food was fabulous, as the many regular customers would agree. Quietly she paid up and left the restaurant still muttering that the food was not good. I later asked the waitress if she had paid. Yes, but only for the cheaper second dish.
While it was easy for me to challenge one woman, it is harder to stand up to the big bullies in this world
Somehow she was the epitome of what is wrong with the world at the moment. Those who shout loudest and who assume a mantel of control and confidence often get away with a lot of nonsense, while the rest of us look helplessly on. The world is watching the unfolding (or perhaps crumbling) of the latest nonsense coming out of the White House. One man is shouting louder than others, taking control of things he is not qualified for other than by ceremonial office. There is very little anyone else can do except quietly down-tools, and make what is probably no more than a symbolic gesture.
Across the Atlantic in the UK we watch while the politicians fight among themselves as to who has the best ability to take over the playground, aka Brexit, negotiations. Of course, I could go on to list many more examples of bullies flexing their muscles while we regular folks are in despair wondering what the outcome will be. It does seem that the only person who may benefit from all this mayhem is another larger than life playground bully looking on from afar, but seeing ample potential to step in once the other kids exhaust themselves with all their infighting. Isn’t this the way conflict starts?
While it was easy for me to challenge one woman and stand up for those who were, momentarily, unable to speak for themselves, it is harder to stand up to the big bullies in this world. Especially if they have the power and ability to take away our liberty through muzzling the press, imprisoning us, or replacing us with their cronies.
Yes-man diplomacy
A cabinet meeting last week appointed Amrit Bahadur Rai as Nepal’s Permanent Representative to the United Nations in New York. It is only the second time in Nepal’s history that the government has replaced an ambassador by going against the established norm whereby after the completion of an ambassadorship, a diplomat must serve for at least two years at the ministry before taking up new ambassadorship. Rai had just completed his term as the ambassador to South Africa. The current foreign secretary, Shanker Das Bairagi, declined the UN appointment as he expects to be Chief Secretary. Hence the government appointed Rai, a joint secretary at the Ministry of Foreign Affairs.
Rai is the third-ranking senior joint secretary at the ministry. Bharat Raj Poudyal, who is currently leading the UN division in the ministry, could have been the next UN candidate as he is the senior-most candidate. Likewise, Sewa Adhikari, who is currently the Nepali ambassador to Pakistan, is the second-ranking senior joint secretary.
Rai’s appointment is reflective of the politicking inside the ministry. The crucial UN posting is impossible to get without political connections. This has put a large number of officials in a dilemma over whether they should cultivate such connections. According to one Nepali diplomat in New Delhi, Nepal is perhaps the only country in the world that recruits retired diplomats as ambassadors on the pretext of utilizing their experiences, as if there were no other alternatives.
The trend is reminiscent of the Panchayat era when only a limited number of people got such appointments, time and again. Today as well, there are plenty of capable people, but only a few with right political connections get the opportunity. Joint Secretary Krishna Prasad Dhakal was recently recalled from New Delhi, where he was serving as the deputy head of mission, and has again been appointed ambassador to the UAE. Dhakal has not served in the ministry for a long time, but still got the coveted post because of his political connections.
This yes-man culture has adversely affected the ministry’s functioning. Pradeep Kumar Gyawali, Minister for Foreign Affairs, defended Rai’s appointment, saying that Rai was chosen to make ambassadorial appointments inclusive. Gyawali added that ambassadors are sent to missions on the basis of their capacity (rather than based on their seniority).
However, former Permanent Representative to the United Nations Office in Geneva, Dinesh Bhattarai, says, “The UN missions should be led by either a former foreign secretary or an experienced political leader. The government is violating this practice and is conducting diplomacy in a childish manner.” He added that appointing politically-inclined career diplomats is not a good practice.
The government should do proper homework before appointing ambassadors. High level political appointees should be sent to important missions like New York and Geneva. Likewise, the ambassadors to the US, the UK, France, China (Permanent Security Council members) and India should be well versed in both diplomacy and international relations. Not just anybody can be sent to these places.
Most MoFA officials have technical knowledge but they seem to lack substance. Soon, the ministry will face a scarcity of joint secretaries, most of whom have been appointed as ambassadors. Three weeks ago, the government had recommended ambassadors to Canada, France, Switzerland, Thailand, and Kuwait, all from among career diplomats.
It also decided to recall the ambassadors to South Korea, Spain and Bangladesh, who were appointed by the previous government. Last week, a new ambassador to Israel was appointed and the government is in the process of appointing ambassadors to India, the UAE and Malaysia as well.
Before, ambassadors used to willingly resign after the formation of a new government under a different party. The trend has changed now.
Nepal has 30 embassies, three Permanent representative UN offices in New York, Geneva and Vienna, and six general consulates. It is about time that the MoFA cultivated country- and sector-specific experts. Failure to do so will seriously undermine Nepal’s diplomacy.
The author heads the Political, Current and Foreign Affairs Bureau at Annapurna Post national daily
It’s politics, stupid
You have probably already come across pieces on porn and alcohol regulations, and on other crackpot theories that Hinduism, patriarchy and capitalism are responsible for rapes and other criminal activities in the country. Yes, there’s a porn ban in effect and the government is enforcing stricter alcohol control (i.e., making it impossible for alcohol companies to sponsor cultural, sports or any other events, to put up billboards or to advertise in any media). Not many have dared ask the correlation between porn, alcohol and rapes and other criminal activities. How many rapes are committed because of porn and how many under the influence of alcohol?
If porn and alcohol led to rapes and crimes then Europe and even Japan would be pretty dangerous places to live—but they aren’t. There are many western countries where you can get porn in cable and you have beer commercials on national TV. Actually you have beer and hard liquors commercials in Chinese TV channels, and nobody draws any connection between crimes and alcohol there. Of course, porn is banned in China to prevent the spiritual pollution of its citizens, as the argument goes. But the curious ones can go to any book store and under photography section find books on human body photography with nude and semi-nude models. Porn is banned but celebrating the beauty of human body is not. And no, Japan, and China and European countries aren’t any more dangerous than many South Asian countries with porn and alcohol bans.
Now the question is, what made our all-powerful government make silly decisions that make no sense whatsoever? The real reason that Nepal is becoming dangerous is not because of porn or alcohol, but because of politics. Yes, it’s bad governance and corruption that have made Nepal unlivable.
If I know I can pay money or use political and personal connections to get just about anything done, wouldn’t I be emboldened? This is exactly what’s happening. People aren’t afraid to commit crimes because they know their political connections, wealth or their parents will bail them out. The police find themselves helpless. The politicization of police force has made police officers think 10 times before arresting a criminal. When you see people arguing with police officers on the streets, refusing to follow legitimate and valid orders, you know the country has issues with how it’s governed.
Don’t get me wrong. Nepal Police is an impressive organization and its officers are competent. But the political system has thus far not shown any interest in utilizing their skills and trainings to rid the country of crimes and criminals. They have to follow government orders, and the government is influenced by party leaders, donors, the powerful ones and who not! The government sits idle, no matter how serious the charge or how heinous the crime committed by family members and friends and neighbors of political leaders and big businessmen. The police then have to ignore court rulings and charges filed against criminals and pretend they do not even see most wanted criminals when everybody else sees them chatting up the prime minister and home minister. The police have to deny any such sighting and sheepishly tell us, “we are leaving no stone unturned to nab the culprits.”
This is it. No porn, and no alcohol is to be blamed for rape and other crimes. Instead, the government, if it is serious about safety and security of its people, should stop interfering and influencing police investigations and have a “no exceptions” policy. Criminals, no matter who they be, say, even the president’s son or the prime minister’s daughter, won’t be spared. That would do.