International donors to Nepal have asked the government to withdraw a recent controversial code of conduct for non-governmental organisations. The code prohibits NGOs from receiving aid through agreements between Nepals government and donor countries, BBC Online reports Sunday.
Nepal depends entirely on foreign aid for its development budget. The aid is a mixture of foreign grants and loans.
The new code of conduct comes nine months after King Gyanendra seized direct power and suspended civil liberties.
When the code was published last week, a number of NGOs, foreign donors and international watchdogs denounced it as a tool to curtail democratic and civil rights.
Now a spokesman for more than a dozen donors, Matthew Kahane, who is also the resident representative United Nations in Nepal, has said the donors have rejected the code because it was prepared without them being consulted.
The government denies that, saying it had taken suggestions from interested parties. It says the code is aimed at making non-government organisations transparent and responsible.
Nepals social welfare minister Durga Shrestha has said that any NGO not following the code will face legal action.
Aid to Nepal money comes from governments (bilateral aid) and multilateral organisations such as the World Bank and the Asian Development Bank.
Many foreign donors from the United States and Europe have been implementing their programmes in Nepal through NGOs, BBC adds.
