NTB business restarts after govt removes CEO

Fri, Jun 20, 2014 12:00 AM on Others, Others,

KATHMANDU, JUN 20 - The Nepal Tourism Board (NTB) went back to business as usual on Thursday ending 53 days of disruption to its operations after the Tourism Ministry “unofficially” removed officiating CEO Subash Nirola.  

NTB employees went back to work after a secretary-level decision authorized its directors to run the organization under Clause 11 (1) of its Employees Bylaws.

As per the rules, NTB activities can be carried out through a collective decision of four directors, among which a senior director will serve as the acting CEO in the absence of the CEO or officiating CEO.

The ministry’s decision came immediately after the Commission for the Investigation of Abuse of Authority (CIAA) ordered it to resolve the longstanding issue within three days or face lead proceedings.  

All the activities at the country’s tourism promotional body had come to a grinding halt after travel trade associations launched a strong protest movement against the NTB for misusing tax money.

Although the agitating travel traders had called off their demonstration two weeks ago following government assurances to probe alleged financial irregularities at the NTB, its staffers including senior-level employees had been hesitating to go back to work without their boss.

There has been no formal announcement of the suspension of NTB’s officiating CEO Nirola who has been charged with promoting irregularities, but Thursday’s orders from Tourism Secretary Sushil Ghimire empower NTB’s directors to run the organization. Ghimire also chairs the NTB board.

“Our attention has been drawn to the prolonged stalemate as it has hit all tourism activities. Besides, these orders have been issued to ensure that the documents and resources of NTB are not misused,” said the secretary in his directive. It has also mentioned giving special attention to assisting the committee formed to investigate the alleged financial irregularities at the NTB.

The anti-graft body on Wednesday said that the NTB had remained immobile for a long time, and that its line ministry had not shown any seriousness in sorting out the issue concerning such a sensitive organization.

The CIAA said that the head of the NTB had not been to his office for more than a month. The employees too had been apparently signing the attendance register and getting their salaries and perks without doing any work.  “In such a scenario, the NTB’s line ministry has not been serious about making any effort to resolve the crisis,” it said.

Travel traders have accused the NTB bosses of committing irregularities by amending its Financial Bylaws in contravention of the Public Procurement Act (PPA), which lays down the rules for procurement by public entities.

The amended bylaws that have upset the tourism industry have given the NTB’s chief executive exclusive rights to spend freely in excess of the limit set by the PPA. The bylaws also allow the board to award contracts without competitive bidding even though the act says that tenders should be called before doing so.

Under the amendments to the Financial Bylaws that give sweeping powers to the NTB boss to dispense cash, the CEO can spend up to Rs 10 million at a time for tourism promotion activities inside the country.

Similarly, the chief can spend $ 400,000 at a time outside the country without following any due process of the PPA. The CEO has also been given the power to spend up to $ 400,000 at a time through its honorary representatives and firms. As per the new rules, the NTB can procure goods and services worth up to Rs 2.5 million through a quotation. The board can also purchase goods and services including promotional materials through a single supplier directly through a written proposal.

“The ministry has finally addressed our demand to demote the officiating CEO Nirola so that investigations against him and the NTB can be carried out,” said Ramesh Dhamala, president of the Trekking Agencies Association of Nepal.

“The decision to entrust the board’s responsibility to its senior directors ending the CEO’s role at the board has paved the way for an investigation,” said Dhamala, who is leading the private sector movement against the misconduct at the NTB. Meanwhile, the probe panel called its first meeting on Thursday. The seven-member body is headed by Purna Chandra Bhattarai, joint secretary of the ministry. Another committee has been formed to restructure the NTB, and it has been given 21 days to submit its report.

(Source: The Kathmandu Post)