Committee revokes Finance Ministry decision
KATHMANDU, June 21:
Economic and Labour Relation Committee under Legislature Parliament today revoked the Finance Ministry decision to form a selection committee to appoint chief executive officer of Rastriya Banijya Bank under the central bank deputy governor. “The regulatory authority of financial institutions — central bank — should not be involved in appointing CEO of a commercial bank,” the directive read, adding that there would be conflict of interest, if the central bank is involved.
“Central bank is basically a regulator and it is not fair to form a committee under the leadership of regulatory body,” former finance minister and Constituent Assembly member Dr Ram Sharan Mahat told The Himalayan Times.
The Finance Ministry had formed a selection committee led by Nepal Rastra Bank deputy governor Maha Prasad Adhikari to select a CEO of the state-owned bank. Earlier, the committee had clearly directed the Finance Ministry to form a selection committee led by finance secretary.
“Clash of interest is inevitable with the Finance Ministry’s recent decision,” he said, adding that the minimum qualification and experience of the CEO has also been softened to suit a certain person near to the ruling coeliation government, which will put Rastriya Banijya Bank into trouble. “CEO of Rastriya Banijya Bank should be highly competent,” Mahat said.
The committee also objected on the minimum qualification and time of application.
“The minimum qualifications for the purposed CEO has been diluted,” the committee said in its decision, directing the government to set minimum qualification of a CEO at par with the earstwhile CEO appointed under Financial Sector Reform Programme.
Similarly, the committee also directed the government to expand the deadline of Expression of Interest from current 10 days to a month period. The current deadline has been set for June 24 giving only ten days to express interest.
Source: THT
Economic and Labour Relation Committee under Legislature Parliament today revoked the Finance Ministry decision to form a selection committee to appoint chief executive officer of Rastriya Banijya Bank under the central bank deputy governor. “The regulatory authority of financial institutions — central bank — should not be involved in appointing CEO of a commercial bank,” the directive read, adding that there would be conflict of interest, if the central bank is involved.
“Central bank is basically a regulator and it is not fair to form a committee under the leadership of regulatory body,” former finance minister and Constituent Assembly member Dr Ram Sharan Mahat told The Himalayan Times.
The Finance Ministry had formed a selection committee led by Nepal Rastra Bank deputy governor Maha Prasad Adhikari to select a CEO of the state-owned bank. Earlier, the committee had clearly directed the Finance Ministry to form a selection committee led by finance secretary.
“Clash of interest is inevitable with the Finance Ministry’s recent decision,” he said, adding that the minimum qualification and experience of the CEO has also been softened to suit a certain person near to the ruling coeliation government, which will put Rastriya Banijya Bank into trouble. “CEO of Rastriya Banijya Bank should be highly competent,” Mahat said.
The committee also objected on the minimum qualification and time of application.
“The minimum qualifications for the purposed CEO has been diluted,” the committee said in its decision, directing the government to set minimum qualification of a CEO at par with the earstwhile CEO appointed under Financial Sector Reform Programme.
Similarly, the committee also directed the government to expand the deadline of Expression of Interest from current 10 days to a month period. The current deadline has been set for June 24 giving only ten days to express interest.
Source: THT
