CEO selection in two PEs in limbo, vacancy for two more this week
KATHMANDU,JUNE 14:
The selection process of a chief executive officer (CEO) at two different public enterprises (PEs) –– Nepal Oil Corporation and Nepal Electricity Authority –– has remained stagnant due to a writ from the existing acting chiefs of both PEs at the court.
Public Enterprises Directorate Board had called for the application of chief executives of Nepal Oil Corporation and Nepal Electricity Authority but later it could not proceed with the selection since acting chiefs of both the public entities approached the court, said joint secretary at the finance ministry Khum Raj Punjali, adding that the board will take necessary action only after a final verdict from the court.
However, the board will start the selection process for a chief executive officer for two more public enterprises even though the process of the earlier two PEs has been halted, he said. “The board will open the vacancy to start the selection process of a chief executive at Insurance Board, and Hydroelectricity Investment and Development Company this week.”
Public enterprises cannot carry out their responsibilities assertively if the government fails to appoint chief executive officers timely, he said, adding that the performance of public enterprises has been decreasing due to the lack of a head of the organisation.
Meanwhile, Citizen Investment Trust has sought a detailed business plan of Janakpur Cigarette Factory to release a loan, according to the Finance Ministry.
A total of 833 employees at the factory are receiving salary from the factory even though it is not in operation at present, the ministry source said, adding that the government has been injecting at least Rs 25 million every month to the factory just to distribute salary.
Janakpur Cigarette Factory was established with Russian aid in 1964. And, the government had sought its assistance to revive the crisis-ridden public enterprise. But, the Russian side has said that it can assist the factory only after it resumes production, the ministry source informed.
Source: THT
