SC verdict allows PEB to resume work

KATHMANDU, MAR 27

The Supreme Court on Thursday cleared the deck for Public Enterprises Board ( PEB ) to carry out its regular job, including making appointments at public enterprises (PEs).

A joint bench of justices Kalyan Shrestha, Gopal Parajuli and Om Prakash Misra scrapped writs filed questioning the PEB ’s jurisdiction.

The court on Sept 5, 2013, had halted PEB s work issuing an interim order. It was not even permitted to issue vacancy notices.

With the SC delaying the verdict, the government removed 17 public enterprises from PEB ’s purview and filled the top posts at most of the PEs through political appointment.

PEB was formed to make the appointment of CEOs at state-owned enterprises through competitive process so competent individuals, instead of political appointees, would handle them.

The tradition of making political appointment has been blamed for poor performance of PEs.

PEB Chairman Bimal Wagle expressed happiness over the SC’s decision.

“My tussle will now be with the government which made political appointments by taking out several PEs from PEB ’s purview,” he said.

The PEs that were removed from PEB ’s purview include Agriculture Development Bank, Rastriya Banijya Bank, NIDC Development Bank, Rastriya Beema Sansthan, Citizen Investment Trust, Hetauda Cement, Udyapur Cement, Industrial Estate Management Limited, National Productivity and Economic Development Centre, The Timber Corporation, National Trading Limited, Nepal Oil Corporation, Nepal Transit and Warehouse Management Company, Nepal Drugs Limited and Herbs Production and Processing Company, National Seeds Company and Agriculture Input Company.

While financial institutions were removed from PEB ’s purview as they were supposed to make appointments under the Bank and Financial Institution Act, the others were taken out just to make political appointments. The government has made appointments of chief executives at most of the PEs.

Source: The Kathmandu Post