The World Bank has ended its financial aid for Nepal's peace process as Kathmandu had failed to push ahead the stalled reconciliation process and use the assistance as per the agreement with the global body.
The landmark peace process, which brought the Maoists into the mainstream after a decade-long insurgency, has been stalled with the failure of the main political parties to build a consensus on the integration of the Maoists' guerrilla force into the Nepal Army.
The World Bank took the decision after reports that the financial aid for the Maoists combatants of the People's Liberation Army (PLA) were being used for political purpose of UCPN-Maoist party, Nepalese newspaper Republica said.
According to the report based on unnamed sources, the world body has ended its funding to Maoist combatants living in UN-monitored cantonments as various stakeholders in Nepal failed to convince WB that the assistance has been used as per the agreement.
A videotape in May had shown Maoist Prime Minster Pushpa Kamal Dahal 'Prachanda' reveling that the leadership of the former rebels had inflated the number of Maoists combatants and were using the funds for its own purpose, the report said.
As per the previous agreement, the government was to conclude the process of the integration of the PLA combatants with the national army by January 2009. However, the WB extended the project to mid-July as per the government´s request.