Ministry wants FCGO secy as CIT chairman

KATHMANDU, OCT 28 -

The Finance Ministry has proposed appointing the secretary of the Financial Comp-troller General Office (FCGO) as the chairman of the Citizen Investment Trust (CIT).

Former CIT Chairman Chandra Mani Adhikari’s term expired on October 20. Although government officials used to be appointed as the chairman of CIT, which mobilises the savings of government employees, Adhikari was appointed from outside the public services.

A Finance Ministry source said the proposal was put forth after holding consultations with the Finance Minister. The proposal is now awaiting the minister’s approval. “After the minister gives it a nod, it will reach to the Cabinet for final decision,” the source said.

Finance Ministry Joint Secretary Krishna Prasad Devkota said “positive discussions” are taking place at the ministry on the appointment of the FCGO secretary as CIT chairman. “As the CIT is a self-regulatory body and has to manage the savings of government employees, including civil servants, teachers, police and army, we have an understanding that a lead by a government official is appropriate,” Devkota said.

Although government officials have headed the CIT as chairman most of the times, the founding chairman was, however, from outside the government service. The first chairman of the CIT was Dambar Prasad Dhugel, who was from outside the government service, and served as executive chairman, according to CIT Executive Director Rishiram Gautam.

The semi-government body has resources of Rs 41 billion and half of the money has been deposited in banks and financial institutions and investment products.

At present, it is launching various types of voluntary retirement schemes (pension funds and gratuity funds, among others) and mandatory insurance fund programmes on the basis of fully funded and individual account.

It has also been encouraging long-term savings mobilisation by operating Employee Saving Growth schemes, Employee Savings Growth Retirement Fund, Insurance Funds for government employees and teachers, Investors’ Account scheme, Pension/ Gratuity Fund scheme and Citizen Unit scheme to help small- and medium-saving depositors’ surplus fund mobilisation towards the capital market.

Source: The Kathmandu Post