Reckless power...

The minister for economic affairs, Lyonpo Khandu Wangchuk, is in New Delhi. He’s meeting his counterparts in the Indian government to discuss the hydropower projects currently under construction. And he’s attending the empowered group meeting that will consider future hydropower projects, including those that will be developed as joint venture projects by public sector companies of the two governments.

I hope that Lyonpo Khandu will remember the question that I had submitted during the last session of the Parliament. I didn’t get to actually ask it due to time constraints. But, as required, I had submitted my question in advance, in writing, so he knows that the opposition party has serious concerns about the joint venture hydropower projects that the government is negotiating.

Here’s my question:

The Government has reportedly allowed Indian Public Sector Undertaking (PSU) companies to build and operate 4 big hydropower projects under a build, operate, own and transfer (BOOT) mode as joint venture partners with Druk Green Power Corporation.

Will the Hon’ble Minister please explain why the Government should go ahead with the joint venture projects when the demands of the PSUs violate the Government’s sustainable hydropower development policy and create excessively favorable conditions for themselves?

Hydropower is a valuable resource. It is the cornerstone of our economy. And it is its main driver. So we must develop it. But we must do so carefully. We must ensure that each and every hydropower project contributes meaningfully to our economy, benefits our people, and strengthens our sovereignty. We must be careful. We cannot be reckless.

But that’s exactly what the proposed joint venture projects are: reckless. The government seems to be willing to ignore and violate important provisions of the sustainable hydropower development policy for the Indian government PSUs. Those policies were carefully developed just 3 years ago, so undermining them basically amounts to recklessly compromising the interests of our country and people.

The government, for example, has allowed the Indian PSUs to own 51% of the joint venture projects although the policy explicitly states that, “For Public-Public partnership, the RGoB undertaking shall have a minimum of 51% shareholding.”

What that means is that Indian government PSUs will have managerial and decision-making control over the joint venture projects. That is not good. That is reckless.

But that’s not all. The government seems to be giving in to even more demands of the Indian PSUs. These demands would create even more favorable conditions for Indian PSUs by simply ignoring even more of the government’s hydropower policy.

For instance the PSUs have demanded that the joint venture projects be exempted from paying royalty power to the government. Hydropower is a natural resource that belongs to the State. So royalty must be collected for exploiting that resource. That’s why the hydropower policy requires that, “A minimum of twelve percent (12%) of electricity generated shall be made available free of cost to the RGoB as Royalty Energy during the first 12 yeas of commercial operation of the project and a minimum of eighteen (18%) thereafter …”

The PSUs have also demanded that they enjoy ownership of the joint venture projects for 35 years. That also violates the hydropower policy according to which “The project shall be allotted to a Developer for a concession period of thirty (30) years, excluding the construction period.”

And the PSUs have demanded payment of “fair market value” of the projects when they are handed back to the government at the end of the “concession period”. What does the hydropower policy say? “At the end of the concession period, the entire project shall be transferred and vested in the RGoB at no cost and in good running condition.”

If joint ventures with Indian PSUs make sense, go for it, develop our hydropower resource, strengthen our economic base, and reinforce the strong ties of friendship that we enjoy with India.

But if the joint ventures don’t make sense, if they aren’t attractive enough, if they compromise our own policies, if better partnerships are available, then take a step back, pause, review the situation, and do what’s best for our country and our people.

There’s no need to be in a hurry. And there’s certainly no need to be reckless.

Nervous and scared...

Full of promise

The Class XII results are out. 8,576 students took the exams last year. And a good 86% of them passed.

They’ve completed school. Some of them will go to college. Some will undergo training. And the rest will enter the world of work. They’ve begun a brand new chapter in their lives, a chapter that should be full of promise and excitement. So we should be happy for them. And we should be excited for them.

But I’m not. I’m not happy. And I’m not excited. Instead, I’m nervous. And I’m scared.

More than 7,300 students passed the Class XII exams. The Royal University of Bhutan’s 10 colleges have room for only 2,000 students. And fewer than 250 students will receive scholarships to study abroad.

The rest of them – about 5,000 students – will have to fend for themselves. They’ll have to look for money to continue their studies. Or they’ll have to look for jobs.

Youth unemployment is already high. So securing jobs won’t be easy. That means that many parents will be forced to take out loans to send their children to study in India. And that means that the remaining thousands of students face the dreadful prospect of unemployment.

The government has promised full employment, especially for educated youth, by creating 75,000 jobs during the Tenth Plan. And most of those jobs were to be generated by the accelerating Bhutan’s socio-economic development (ABSD) program for which McKinsey was employed.

McKinsey’s consultants have come and gone. The Tenth Plan will be over by June next year. Youth unemployment is already high. And thousands of Class XII students will now need jobs.

So it’s time for the government to make good on their promise. It’s time to show us the jobs. Otherwise, it’s time for us, all of us, to get nervous. It’s time to get scared.

About financial crisis...

If you, like me, want to know more about the global financial crisis, here’s a quick two-step process.

First, get hold of Justin Cartwright’s novel Other People’s Money. Okay, it’s fiction. But it’s very readable. And you’ll find that the story, which revolves around a failing London bank, provides an enjoyable introduction to why financial institutions collapse, and how rich bankers, powerful politicians and influential journalists conspire to prevent the bank from crashing.

Justin Cartwright’s story also mentions Bhutan – not as the land of gross national happiness, or as an up and coming financial centre, but, interestingly, as a refuge for the mysterious yeti!

Second, download Getting up to Speed on the Financial Crisis: A One-Weekend-Reader’s Guide by Gary Gorton and Andrew Matrick. This paper, also quite readable, is a summary of 16 other documents, and explains what happened during the financial crisis 2007 – 2009.

The one-weekend guide also has a Bhutan connection. The paper was recommended by Dorji Wangchuk on one of his many informative tweets. Dorji Wangchuk is an economist and financial expert working in the UK.

Gyelpozhing: who’s right?...

People's land

Almost six months ago, Tenzing Lamsang exposed the Gyelpozhing land grab case, and explained how laws of the land had been broken to acquire public land and redistribute them to influential people.

A week after that, Dasho Neten Zangmo, the Anticorruption Commission Chairperson, was quoted as saying:

We will look into the case and if there is any element of corruption, abuse of power and conflict of interest and if land has been taken unjustly from private people then we will further investigate the case.

It’s been almost half a year since ACC’s assurances. So I was happy to hear that they have visited Gyelpozhing and that they “… are in the process of reviewing allotment procedure, eligibility criteria, details of all beneficiaries and even the rationale of acquisition.”

But I’m worried that the investigation is taking too long. And Dasho Neten seems to echo my concern by saying that, “It’s going to take a lot of time going one by one”.

I’m worried. And I’m worried for many reasons. But mostly I’m worried because some of those who are allegedly involved are “powerful and influential people”. They include the prime minister, cabinet ministers and the speaker. And in their case, I’m sure that, as politicians, they would want the investigation to be complete well before the 2013 parliamentary elections. It is in their interests that the investigations are over by then. It is also in the Election Commission’s interest. But mostly, it is in the interest of the electorate, our people.

Even so, Dasho Neten has warned that the investigations will “take a lot of time” and ruled that:

We just can’t investigate only a few powerful and influential people. We have to see and study the background of all the beneficiaries like whether there is a ‘nexus’ between the allotter and beneficiaries.

I agree. We need a thorough and complete investigation. An investigation that is not targeted to “a few powerful and influential people”, but one that examines all the people who were involved, one that is comprehensive in its scope.

That said, all the so-called “beneficiaries” cannot be lumped together; they cannot be treated the same.

I can see at least three types of “beneficiaries”. The first type is the beneficiary who developed a “nexus” with the allotter. That would be outright corruption, and both the allotter and beneficiary should be taken to task.

The second type is the beneficiary who applied for land, and was allotted land even though that beneficiary did not qualify to receive land. If that beneficiary did not seek to influence the allotter’s decision in any way, then the beneficiary cannot be held responsible. It was the allotter’s responsibility to check and to confirm that all recipients of land fulfilled all the criteria. So in this case, the allotter should be taken to task.

The third type is the beneficiary who should never have applied for land given the existence of serious conflicts of interest. Beneficiaries of this type would include all public servants (and their immediate family members) who were directly involved in the acquisition and distribution of land. And naturally, they would also include all cabinet ministers (and their immediate family members), but especially ministers who’s job it was to supervise the dzongkhag administration, or to approve the proposed township, or the authorise the land acquisition, or to endorse the allotment criteria.

We cannot excuse the misuse of inside information, the abuse of government power, or the disregard of conflicts of interest. They are the most damaging forms of corruption. So in this case, the beneficiary should be taken to task immediately.

Photo credit: Business Bhutan who also reported that Gyelpozhing residents protested the plot allotments, and that people who lost land were struggling

Jai Hind!...

Good wishes

I spent a couple of enjoyable hours watching India’s Republic Day parade broadcast live from New Delhi on Doordarshan TV. The spectacular procession, along the Rajpath and past India Gate, showcases India’s military might, cultural diversity and national integrity. The annual event is also a celebration of the Indian freedom movement and the successful rise of India in all spheres of the global arena since its independence 65 years ago.

The chief guest at the Republic Day parade is typically a foreign head of state or government chosen carefully to reflect the important strategic, economic and political relationship between India and that country.

This year’s chief guest was Thailand’s prime minister, Yingluck Shinawatra.

India’s 63 republic days have featured chief guests from about 40 countries. Of the forty, only a handful have received this honour on more than one occasion. France leads this very exclusive pack by being the guest of honour four times.

Bhutan has received the honour three times, in 1954, 1984 and 2005. And the Fourth Druk Gyalpo, His Majesty Jigme Singye Wangchuck, is the only person to have attended India’s Republic Day as chief guest twice while holding the same office.

This special privilege, this unique honour, that India, a big and powerful country, gives Bhutan, a small kingdom, during its most important national day is significant. It is a reflection of the deep and enduring friendship between our two countries.

So today, on the joyous occasion of the 63^rd Republic Day, I offer my Indian friends – in Bhutan, in India and the world over – my heartiest congratulations and good wishes for continued peace, progress and prosperity.

Jai Hind!
Pelden Drukpa Gyelo!

“Good wishes” – excerpt from the President of India’s Republic Day Address

Indignity...

Self-help

Last week, I reported to the National Assembly that, even four months after the September 18 earthquake, the victims of the earthquake still didn’t know what assistance to expect from the government. The government had, to be sure, provided corrugated iron sheets to some of the victims. And more importantly, the army, at His Majesty the King’s command, had built temporary houses for the victims.

But the victims have not been able to start working on their houses. Most of them have not begun to repair the damages, or to rebuild their houses. They have not been able to do so, because the government’s assessment of the damages has been slow and inconsistent. As a result, most of the victims have not received their insurance claims, and none of them seem to know if they can expect further assistance from the government.

So I questioned the government for not having a proper system in place to respond to natural disasters, a system that provides meaningful relief and offers adequate support for reconstruction.

And I criticized them for distributing “dignity bags” when it was quite clear that the victims didn’t need them. The earthquake had damaged thousands of houses. But thankfully, virtually none of them were razed to the ground. As such, the victims could enter their houses to retrieve their belongings as and when they wished. That’s why they didn’t really need the blankets, clothes, pots and pans, and plates and mugs that the dignity bags provided. What they desperately wanted is proper assessment of the damages, timely insurance payments, and a go-ahead to rebuild their houses.

The Home Minister, naturally, claimed that the government’s response to the disaster had been adequate, and that they were doing enough to help the earthquake victims. He also claimed that the dignity bags were useful.

But if the dignity bags are useful, if that’s what the victims need, why has the government not collected them from the RENEW offices? In fact, why did the government ask for them in the first place?

I can think of one reason: the government does not have a proper understanding of the ground realities. Given the nature of the disaster, the victims of the earthquake don’t need dignity bags. What they desperately need is the government to finalise its assessment – they want to receive their insurance claims; they want to know if the government will provide any additional support; and they want to start rebuilding their houses.

Apologise and appeal...

One year +

Today, we celebrated traditional day of offering.

Today is also exactly one year since Sonam Tshering was detained by officials for illegally possessing Nu 120 worth of Baba khaini. Sonam Tshering has already been in jail for one full year.

So today, on traditional day of offering, I thought about how we, parliamentarians, should offer our services to Sonam Tshering and the many others like him who continue to suffer under the oppressive Tobacco Control Act.

First we should apologize. We should apologize and take full responsibility for arrogantly (and foolishly) passing a law that quickly subjected so many of our people to untold pain and suffering.

Then we should appeal. As soon as the Tobacco (Amendment) Bill comes into force, we –  members of the National Council, the ruling party and the opposition party – should collectively appeal to His Majesty the King to grant amnesty to the people who have been incarcerated unjustly because of our foolhardiness.

Sonam Tshering and others like him are in jail because of us. The least we must now do is try our best to get them out.

Short and sweet...

Assembly

The 8^th Session of the Parliament concluded last Friday. It was easily our shortest session: we started on 4 January and ended, barely 12 working days later, on 20 January.

But the 8^th session was historic. Her Majesty the Queen graced both the opening and closing ceremonies; and the members of Parliament got to offer the Oath of Allegiance to the Throne.

Plus, the joint sitting of the Parliament amended the Sales Tax, Customs and Excise Act and the Public Finance Act to align them in accordance with the Supreme Court’s interpretation of the Constitution which had been rendered in the first constitutional case (Incidentally, the amendments had actually been proposed by the ruling party in the 6^th session to give the government sweeping powers to introduce, increase and revise all taxes); the Parliament amended the Tobacco Control Act, responding to public outcry that the law was flawed and draconian; the National Council passed the first-ever private bill, the National Flag Bill, introduced by NC MP from Wangduephodrang; and the Speaker invoked special powers granted to him in the Legislative Procedure Rules to block the Parliament from voting on the Election (Amendment) Bill that mainly sought to permit state funding for political parties.

The 8^th session was also quite productive. In addition to what I’ve already mentioned, the National Assembly passed five bills (Consumer Protection Bill, Druk Gyalpo’s Relief Fund Bill, Education City Bill, Disaster Management Bill and University of Medical Sciences Bill) and ratified one international convention (Ramsar Convention on Wetlands); the National Council passed the University of Medical Sciences Bill, the Parliamentary Entitlement (Amendment) Bill, and ratified the Ramsar Convention; the joint sitting passed the Child Adoption Bill; and both houses endorsed the government’s proposal to increase the salaries of tshogpas, and questioned the government on a range of issues.

The 8^th Session was short. But it was productive. A lesson, perhaps, that we should keep our future sessions as tight as possible.

Special prayers...

Dragons

The Zhung Dratshang, our central monastic body, concluded the “Druk-lo Doe-choed” prayers yesterday. The prayers are performed once every 12 years to usher in the year of the dragon, and to secure peace and prosperity for the people and all sentient beings.

The banner features some of the 300-or-so monks involved in the 5-day prayers at Punakha’s Puna Dewachen Phodrang.

No. No. No....

Is it legal? Is it logical? Is it needed? Three questions that we, members of Parliament, should ask ourselves today when we talk about state funding for political parties during the joint sitting.

Is state funding for political parties legal? No.

Article 15 Section 4(d) of the Constitution clearly forbids political parties from accepting “… money or any assistance other than those contributions made by its registered members”. That’s why the National Assembly decided almost 4 years ago that state funding for political parties would be unconstitutional. That’s why the Election Commission of Bhutan has called state funding for political parties illegal. And that’s why the Chief Justice of Bhutan has declared that state funding for political parties would go against the “spirit of the Constitution”.

Is state funding for political parties logical? No.

A political party, by definition, is a group of people who share the same ideas on how our country should be governed. These people work together to advance their political beliefs by securing the right to make laws, determine policies, and to run our government.

A political party, therefore, needs people. It needs people to support its ideas. And it needs people to finance the party machinery to advance those ideas. So if a party, any party, cannot draw enough people to support it, that party cannot claim to be a true political party.

You may agree with the ideas of a political party. Or you may not. If you do, you may wish to support that party, you may wish to become a member of that party, and you may wish to contribute financially to that party. But if you don’t agree to those ideas, you may wish to support an alternate political party. Or you may wish to stay neutral.

That decision is yours. That decision is your right. You may chose to support one party, or another, or you may chose to stay neutral. I repeat: that decision is your right. And what state funding for political parties threatens to do is infringe on that right. State funding would mean that your tax money will go to support all political parties; whether or not you want to support them, whether or not you agree with their ideas, your tax money will go towards propping them up.

To make matters worse, state funding for political parties would short-circuit the important relationship between political parties and the people. On the one hand, state funding would permit a political party to exist even if its ideas are not generally supported. On the other hand, state funding would mean that a political party does not have to be accountable to people. Instead that political party would essentially become, and should be required to operate as, a government department! Read the rest of this entry »