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Nepal's PM G P Koirala to resign

Our Correspondent in Kathmandu

Troubled by a raging Maoist insurgency in the northwestern parts of Nepal, allegations of corruption in an aircraft leasing deal and charges of mishandling the fallout of the royal family massacre, Prime Minister Girija Prasad Koirala resigned on Thursday.

Koirala, a senior leader of the ruling Nepali Congress and prime minister for most of the 11 years that Nepal has had a democratic government, handed over his resignation to King Gyanendra in the evening.

Soon after, he went on state television and radio to address the nation.

The septuagenarian Koirala's handling of the law-and-order situation after several members of the royal family, including King Birendra, Queen Aishwarya and Crown Prince Dipendra, were killed in a family quarrel was severely criticised not only by the opposition Communists but also by members of his own party.

To add to his troubles, the Maoist insurgents who virtually rule most of the country's northwestern regions, have been increasing their violent attacks on the government, going so far as to abduct the entire staff of a police station last week.

As if these were not enough troubles, the prime minister himself has had his integrity questioned, with the opposition accusing him of corruption in a deal to lease aircraft from the Austrian airline Lauda Air, owned by former Formula 1 driver Niki Lauda.

Former prime minister Krishna Prasad Bhattarai, Koirala's contemporary and president of the Nepali Congress, had openly stated recently that it was time for aged politicians like himself and the prime minister to make way for the younger leaders in the party.

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