The embassy, however, said if any allegations are serious and require action from its side, it would look into them. The statement on Friday follows allegations against Kanak Mani Dixit, executive director of the Trust that publishes the Himal Southasian, by lawmakers of the misuse of Norwegian funding.

“We want to be clear that we have no reason to believe the embassy's funding to the Himal Southasia magazine has been misused," it said. Nepali Congress and UCPN (Maoist) lawmakers had alleged that the Trust, which got Rs 60m from the embassy, had misused it to campaign against peace process.

The lawmakers had also questioned the integrity of Dixit and the role of the donor which they said had failed in its oversight of the fund allocated to Dixit's organisation.

US, Norwegian envoys meet Maoist chairman

US ambassador Peter W Bodde and Norwegian ambassador Kjell Tormod  Pettersen held separate talks with UPCN (Maoist) Chairman Pushpa Kamal Dahal at his residence on Friday.

According to Dahal's aide Chudamani Khadka, Bodde voiced concerns over Truth and Reconciliation Com-mission and Commission on Disappearances. "He said international human rights law should be considered while forming them."

Dahal responded that the bill has no provision of blanket amnesty as was often wrongly said. "Petterson assured Dahal the embassy will probe the case if Rs 60 million granted to Trust was found to have been misused,' said Khadka. The Maoist party has long accused Dixit of misusing donor funds for a witch-hunt against it.

PM asks Norway to be transparent

In his meeting with Norwegian Ambas-sador Kjell Tormod Pettersen on Friday, Prime Minister Sushil Koirala stressed that good governance, transparency and accountability were his government's top priorities. "The donor community should make sure that these four core principles of my government are addressed while extending their assistance in Nepal," the PM said.