Political Interference Stalls CIAA Investigation into TERAMOCS Scandal
The Commission for the Investigation of Abuse of Authority (CIAA) has faced significant setbacks in its investigation into the TERAMOCS technology procurement scandal due to intense political interference. It has been two months since Prem Kumar Rai, the Chief Commissioner of the CIAA announced that the investigation into the procurement irregularities of TERAMOCS technology was close to completion. Despite this announcement, there have been no significant actions or decisions made by the CIAA in the time since.
High-ranking officials within the CIAA disclosed that the influence from prominent political party leaders has been overwhelming, effectively stalling any decision-making despite the conclusion of the investigation months ago. Key political figures implicated include former ministers Mohan Bahadur Basnet, Gokul Baskota, and Gyanendra Bahadur Karki, as well as Digambar Jha, the former chief of the Nepal Telecommunication Authority. These individuals are linked to procurement irregularities and decisions influenced by interest groups pushing for the adoption of TERAMOCS technology.
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Nepal May Face Internet Service Disruptions Soon
The Internet Service Providers Association of Nepal (ISPAN) has warned of potential internet service disruptions due to their inability to transfer approximately Rs 3 billion owed to Indian telecom giant Airtel for bandwidth, as revealed during a press conference in Kathmandu on 25 April 2024. ISPAN Chairperson Sudhir Parajuli cited government ban on fund transfers needed for bandwidth payments, compounded by unresolved taxation issues, as putting internet continuity at risk. Despite efforts, including a formal request to the government for approval to transfer the funds, the payments remain stalled due to the absence of government endorsement for foreign exchange.
Media Council Bill Introduced in National Assembly
On 24 April 2024, the Media Council Bill was officially tabled in the National Assembly by the Minister of Communication and Information Technology, Rekha Sharma. This bill aims to establish a comprehensive regulatory framework dedicated to promoting journalistic integrity, encouraging responsible reporting, and protecting the independence of media organizations in Nepal.
Previously published for public consultation on 21 December 2023, the bill has been a topic of considerable discussion among stakeholders. In response to the public release, Digital Rights Nepal had hosted a stakeholder consultation on 28 February, gathering feedback from various parties impacted by the proposed legislation. This feedback was subsequently compiled and submitted to the Ministry, reflecting a collaborative effort to shape a bill that balances regulatory oversight with media freedom.
Industrial Enterprises Act Amended to Include and Support Startups
The government of Nepal has recently amended the ‘Industrial Enterprises Act 2076 BS‘ to formally recognize and support startups, enhancing the country’s investment facilitation framework. Announced on Monday, the amendment introduces a new section, Section 4A, specifically tailored to address startup enterprises. According to the amendment, a business qualifies as a startup if it is registered as a new company, private firm, or partnership; employs innovative technology and concepts in the production and distribution of goods or services; shows potential for rapid technological advancement; is not older than 10 years from its date of registration; and has an annual turnover not exceeding Rs. 15 crore in any financial year after its registration.
To further support these enterprises, the government, along with state and local authorities, is empowered to establish and operate enterprise promotion centers aimed at nurturing and developing startups. Additionally, the legislation requires that startup registration bodies to maintain a dedicated record for these enterprises, thereby simplifying the regulatory and support framework.
Biden Signs Legislation Including TikTok Divest-or-Ban Provision
President Joe Biden has approved a foreign aid package that introduces a critical mandate for TikTok’s parent company, ByteDance. The package includes a “divest-or-ban” provision requiring ByteDance to divest from TikTok within a nine-month deadline. This period could be extended by another three months if the President deems that substantial progress towards divestiture has been made. This legislative move sets a firm timeline for TikTok’s ownership to address national security concerns linked to its operations in the U.S.
Nepal Moves to Limit Foreign Investment in Ride-Sharing Services
The government of Nepal is proposing changes to the Foreign Investment and Technology Transfer Act, 2075 BS, aiming to limit foreign investment in ride-sharing services. A bill seeking to amend the act has been introduced, reflecting a strategic shift to increase the number of industries restricted to foreign investors by ten. Under the proposed amendments, ride-sharing services operating in Nepal would be restricted from having more than 70 percent foreign ownership. Consequently, any foreign ride-sharing company must ensure at least 30 percent local Nepali investment to obtain operational permission within the country.
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AI Report Highlights Global Human Rights Degradation and AI Risks
Amnesty International’s latest report, “The State of the World’s Human Rights,” published on Wednesday, paints a grim picture of the global human rights landscape, suggesting that international law is increasingly being disregarded. The report warns of severe repercussions due to escalating conflicts and the near collapse of international legal frameworks. It also forecasts that the rapid advancements in Artificial Intelligence (AI) could exacerbate the erosion of the rule of law and authoritarian trends.
According to the assessment, which evaluated the human rights conditions in 155 countries, 2024 and the forthcoming years pose significant challenges for human rights protections. Issues highlighted include restrictions on freedom of expression and assembly, the lack of rights to truth, justice, and reparations, and ongoing human rights violations such as gender discrimination. Specifically, the report criticizes the Nepalese government’s ban on TikTok as an infringement on freedom of expression.
AI Global Governance: Assessment of governance mechanisms with a human rights approach
Global Partners Digital (GPD) and the European Center for Non-profit Law (ECNL) has published a study report AI Global Governance: Assessment of governance mechanisms with a human rights approach. This study has criticized the High-Level Advisory Board on Artificial Intelligence (HLAB-AI)’s Interim Report for not evaluating the effectiveness of global cooperation models in AI governance or their impact on human rights. Similarly, it has reviewed and provided detailed analyses of seventeen governance mechanisms suggested by HLAB-AI and academic sources, offering insights and mitigation strategies to foster a human rights-focused international AI governance framework. Additionally, the report has assessed the governance models proposed in the GDC zero draft, identifying potential human rights risks and suggesting mitigation strategies.
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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.
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