Kathmandu, Feb. 17. (PTI, AP): Nepal's King Gyanendra has constituted a six-member anti-corruption commission to be endowed with powers to control graft, investigate and jail politicians and government bureaucrats.

The Corruption Control Commission will be headed by Bhakta Bahadur Koirala, a former bureaucrat and would be granted authority equal to that enjoyed by the Himalayan Kingdom's courts, a statement issued by the royal palace said.

Panel given broad powers

"The commission can investigate and take action against any person on the basis of complaints or information received from any source in connection with smuggling or tax evasion, involvement in the dealing of illegal contracts and other actions defined as corruption by the existing laws," the notice said.

It can take action in contempt cases and sentence anyone guilty of contempt of Commission to six months in prison or a fine of up to Rs 10,000 or both, the notice said. The Commission will have the right to confiscate property of the individual earned through activities considered as corruption in accordance with prevalent laws.

The move follows a series of measures put in place by King Gyanendra following his takeover of power and imposition of emergency since February 1.

The move comes just a day before opposition parties planned to take to the streets to protest Gyanendra's seizure of power tomorrow, which is also Democracy Day in Nepal.

A prominent opposition leader Arjun Narsingh was arrested on Wednesday shortly after he announced launching of an agitation by major political parties against the royal takeover.

AP adds

An Associated Press report added that the nitice from the palace said the six-member commission would be granted authority equivalent to that enjoyed by the nation's courts.

The move follows a series of draconian measures put in place since February 1, when Gyanendra dismissed the government and declared a sweeping state of emergency and suspension of civil liberties in the Himalayan kingdom.

The king said the measures were needed to combat a communist insurgency, which has claimed more than 10,500 lives since 1996, and to bring political stability to the country.

He also promised to control corruption.

Mixed reaction

News of the anti-corruption commission was greeted with cautious optimism in Nepal, where many politicians in successive governments in recent years have been accused of graft and bribery, with several of them being forced to resign in disgrace.

"It is about time some action was taken against these corrupt politicians who have done nothing but get fat while the country is getting poorer everyday," said one student in Kathmandu.

"This commission is formed by the king, who at the moment is the highest authority in Nepal. If this fails, then there is no cure for corruption," he added.

Shreeram Shrestha, tax clerk, was more circumspect about the commission's chances of success.

"We have had so many commissions in the past that has done little more than prepare a report and no action taken," he said.

The move comes just a day before opposition parties planned to take to the street to protest Gyanendra's seizure of power Friday, which is also Democracy Day in Nepal.

Such protests are illegal under the state of emergency provisions and police have arrested several opposition leaders in the run up to the demonstrations.

The new government has come under increasing pressure to restore democracy.

India, the United States, Britain, and other European countries have already recalled their ambassadors.