Nepal's donors say Maoists continue extortion

KATHMANDU, Feb 9 (Reuters) Nepal's key foreign donors have accused former Maoist rebels of extortion, kidnapping and violence despite joining an interim parliament last month under a landmark peace deal.

The Industrial Security Group -- which includes representatives from France, Germany, India, Britain and the United States -- said today Maoists were targeting businesses in violation of a November peace pact with the government.

''Again, the Maoists are demanding money, lodging and food from the businesses and residences in the (Kathmandu) valley,'' a US embassy statement issued on behalf of the group said.

''If Maoist abuses ... continue, Nepal's private sector will be choked and investment will cease.'' Human rights groups have also accused Maoists of kidnapping and extortion despite signing the peace deal.

Maoist spokesman Krishna Bahadur Mahara denied the allegations: ''We are collecting voluntary financial assistance from the people for next week's public meeting in Kathmandu.'' The Maoists plan a rally in the Nepali capital on February 13, the 11th anniversary of the start of their armed conflict against the monarchy, a revolt that killed more than 13,000 people.

The Maoists entered into a peace process with the multiparty government formed after King Gyanendra was forced to end his absolute rule following weeks of mass protests last year.

REUTERS BDP RAI2047