NRB to transfer Malaysia VLN's funds

KATHMANDU:

Nepal Rastra Bank (NRB) has bowed down to the pressure exerted by a company hired by the Malaysian Embassy and has initiated the process of transferring millions of rupees to Hong Kong as per its request.

“We will transfer the funds soon as Ministry of Foreign Affairs (MoFA) and Ministry of Finance have formally asked us to do so,” a high-ranking NRB official told The Himalayan Times on condition of anonymity.

Around eight months ago, Malaysia VLN Nepal, a company hired by the Malaysian Embassy in Kathmandu to process applications of Nepalis seeking Malaysian visas, had filed an application at NRB seeking transfer of around Rs 30 million to a company in Hong Kong.

Since the money raised through visa processing fees was being transferred to Hong Kong, and not Malaysia, the central bank officials had denied extending foreign exchange facility to the company.

But since the company was also associated with the Malaysian Embassy here, NRB had later sought advice of the MoFA. At that time, MoFA had responded saying that the central bank should take a decision in this issue as the company that had placed the request was a private firm registered in Nepal and not related to the Malaysian government. At that time, MoFA had also said that the foreign ministry’s job was to handle matters related to foreign governments and not private firms registered in Nepal.

“But later it changed its tone and requested us to initiate the transfer process. Even, MoF made a similar request,” the NRB official said.

Malaysia VLN Nepal was registered in Nepal on September 10, 2013, as ‘Malesia VLN Nepal’ with authorised capital of Rs 10 million and paid-up capital of Rs one million, shows records at Company Registrar’s Office.

The Lalitpur-based private firm, solely owned by one Din Prasad Shrestha, started working for the Malaysian Embassy from November 1. Since the company started handling visa documents, Malaysian visa fee has jumped from Rs 700 to Rs 3,900 per person. Of the Rs 3,900 raised from each person, Rs 700 goes to the embassy as visa fee, while only Rs 150 is kept by the company as service charge. The remaining Rs 3,050 is held by company apparently in name of Malaysian Embassy in Kathmandu.

Considering around 800 Nepalis leave for Malaysia for employment every day, the company generates an extra Rs 2.44 million for embassy per day, or over Rs 70 million per month.

Source: THT