Tuesday, October 17, 2006

Nepal businesses close in strike against extortion

KATHMANDU (Reuters) - Shops, industries and transport services were closed in many parts of Nepal on Tuesday in a strike called by a business lobby group to protest against extortion by Maoist rebels.

The powerful rebels, who are fighting to overthrow the constitutional monarchy, say they collect "voluntary donations" to maintain their 35,000-strong force.

Highways were deserted and thousands of people were stranded as a result of the strike called by the Federation of Nepalese Chambers of Commerce and Industries (FNCCI).

"Extortions and threats by the Maoists or their trade unions are continuing," said Chandi Raj Dhakal, the federation president.

"We want industrial peace and a secure climate where we can run our businesses without fear," he said.

The Maoists who want to set up a communist republic in the impoverished country have been accused of kidnapping, extortion and other intimidating tactics.

Business leaders said the rebels were continuing with these activities despite a ceasefire with the interim government, formed after King Gyanendra gave in to pro-democracy protests in April. The two sides have since been in peace talks.

The Maoists were earlier concentrated in rural areas but are now active in cities too. Industry leaders say many businesses had either closed or had cut operations due to security threats.

On Monday, a Nepali court banned the strike saying it would inconvenience ordinary people ahead of a major Hindu festival. But the organisers were unmoved.

"It's a complete shutdown of shops and transport," said Sashi Pokharel, a journalist from the resort town of Pokhara, 125 km west of capital Kathmandu.

Four people were injured in Pokhara in a clash between groups backing the strike and those opposed to it, he said.

Residents in major business hubs like Narayanghat, Birgunj and Biratnagar said traders were persuading shops to down shutters but there were no reports of violence.

Source: http://news.yahoo.com/s/nm/20061017/india_nm/india272580_1

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