Digital Rights Weekly/Year 3/ Issue 16

Apr 19, 2024

ECN Keeping eyes on Misuse of Media
The Election Commission of Nepal (ECN) has announced strict measures to ensure the upcoming by-elections for the House of Representatives in Ilam-2 and the Province Assembly in Bajhang-1 on 27 April are conducted fairly and impartially. In a press release dated 16 April, the ECN emphasized its commitment to maintaining a free, fair, and impartial election atmosphere by enforcing the Election Code of Conduct until the election process is complete.
ECN Spokesperson Shaligram Sharma Paudel highlighted concerns over the potential misuse of social media and other media channels, including the spread of misleading information, the operation of fake accounts, and the dissemination of derogatory remarks aimed at influencing the election outcomes. Such activities are prohibited under the Election Code of Conduct, which also forbids the distortion of information and character assassination through any communication channels.
To monitor and address these violations effectively, the ECN is establishing a social media monitoring unit and has already set up district code of conduct monitoring committees led by each district’s Chief Election Officer. Additionally, the ECN has reached out to the Press Council Nepal, urging it to promote positive media content and to take swift action against any negative or misleading reports concerning the election, thereby supporting the creation of a reliable and safe election environment.

Former Nepal Telecom MD Convicted
In a significant development, Sunil Paudel, the former Managing Director of Nepal Telecom (NTC), has been convicted of corruption related to the procurement of the National Payment Gateway (NPG). The verdict delivered by a Special Court on 19 April 2024 found Paudel guilty amid allegations of a substantial financial irregularity amounting to an embezzlement of Rs 250 million during the NPG purchase. The court acquitted other eight individuals accused in the same case, including high-profile figures such as the government secretary, Madhu Kumar Marasini, and several former executives of the National Information Technology Center (NITC).
The case, filed by the Commission for the Investigation of Abuse of Authority (CIAA) in October 2023, alleged that the group proceeded with the procurement of the NPG despite lacking the necessary infrastructure. The total cost for the system, which remains non-operational, was reported to be over Rs 24 crores.

Nepal Introduces Stringent Regulations on Virtual Currency Transactions
Nepal has regulated the transactions of virtual currency, following the President’s assent on amendments related to Prevention of Money Laundering and Promotion of Business Environment.
Under the new provision, any profits made from virtual currency transactions can be confiscated, and offenders can face up to five years in jail along with fines. The amendment specifically prohibits the use, trade, and transfer of virtual currencies within and outside of Nepal, except for those issued by the Nepal Rastra Bank. The certified bill defines virtual currency as any sort of digital token, cryptocurrency, or similar virtual asset that carries value and is used in business activities.

NTA Declines Ncell Share Transfer
The Nepal Telecommunication Authority (NTA) has declined to approve the transfer of shares for Ncell Axiata Limited. This decision has come after it was revealed that Ncell’s main investor, Axiata, had engaged in the purchase and sale of shares with other companies without prior authorization from the regulatory body. Ncell had formally requested approval to transfer company shares on 13 March. However, NTA rejected the request, citing lack of pre-approval for previous transactions as the main reason.

NRB Seeks Public Input on QR Code Transaction Draft Regulation
Nepal Rastra Bank (NRB), the central bank of Nepal, has issued a notice inviting stakeholders to provide their opinions, suggestions, and feedback on the draft regulation on ‘Provisions related to retail payment through mobile banking/internet banking and interbank payments using QR codes etc’. Interested individuals or organizations are encouraged to contribute their insights either by emailing them to fxmd_policy@nrb.org.np or by sending a letter to the bank’s central office. The deadline for submitting feedback is 16 May.

EU’s AI Act Criticized for Inadequate Human Rights Protections
As the EU is poised to formally adopt the Artificial Intelligence Act this month, there has been significant critique from various stakeholders, including ARTICLE 19, regarding the act’s shortcomings in human rights protections. Critics argue that the AI Act does not establish the stringent standards necessary to safeguard fundamental human rights such as privacy, equality, non-discrimination, and the presumption of innocence in the realm of artificial intelligence. This critique labels the AI Act as a missed opportunity to ensure that the deployment and utilization of AI technologies genuinely uphold and protect the array of rights and freedoms essential in democratic societies.Top of Form
Full read at: https://www.article19.org/resources/eu-ai-act-fails-to-set-gold-standard-for-human-rights/

Global Coalition Calls on Tech Giants to Bolster Election Integrity
In an effort to protect democracy worldwide, a coalition of over 200 civil-society organizations, researchers, and journalists have issued a strong appeal to the leaders of major social media platforms. This call to action comes at a critical time as 60 countries are set to hold national elections this year, a period marked by a concerning rise in global authoritarianism. The coalition’s letter urges these tech companies to reinforce their platform integrity measures and to invest in enhancing platform accountability.

Digital Rights Weekly is a week-based update on Digital Rights and ICT issues, that happened throughout the week, compiled and analyzed from the digital rights perspective by Digital Rights Nepal (DRN). DRN is a not-for-profit initiative dedicated to the protection and promotion of digital rights, including the right to online freedom of expression and association, online privacy, access to information, and related issues such as internet governance, cyber laws/policies, and cyber securities in Nepal.