KATHMANDU: Acting Governor of Nepal Rastra Bank (NRB), Dr Neelam Timsina Dhungana, has refused to accept the resignation of Executive Director Dr Gunakar Bhatta, stating that she considers herself a candidate for the position of Governor.
“I will approve resignations from employees below the executive director level, but Dr Bhatta’s resignation should be handled by a permanent governor,” Dhungana told Himal Press over the phone. “As a candidate for the position myself, how can I approve his resignation?”
The central bank has been without a governor for over a month, following the retirement of former Governor Maha Prasad Adhikari on April 7. Although a recommendation committee has been formed to nominate his successor, it has yet to hold a meeting. After Former Governor Dr Bijayanath Bhattarai resigned from the committee, citing the committee’s failure to even hold a meeting, former Governor Adhikari has been appointed in his place.
Last week, Nepali Congress President Sher Bahadur Deuba publicly blamed internal issues within the central bank, not Prime Minister KP Sharma Oli’s reluctance, as the reason for the delay in the appointment of the governor.
Dhungana has also rejected Deputy Prime Minister and Finance Minister Bishnu Paudel’s instruction to accept Dr. Bhatt’s resignation.
A senior NRB official said Dhungana is prepared to stay on leave if the government applies further pressure. This would further delay the appointment process. The government has the option of naming another Deputy Governor, Bam Bahadur Mishra, as the Acting Governor. However, he is currently in the US and is expected to join office on May 17.
The ruling coalition of the NC and UML has agreed to make Dr Bhatta the next governor. However, he cannot be recommended for the position until his resignation is accepted.
On Tuesday, the Nepal Financial Institutions Employees’ Union, the primary trade union in the central bank, criticized Dhungana’s refusal as a sign of “helplessness”. The union blamed political maneuvering, vested interests, and intermediaries for turning the central bank into a playground.
The union has demanded the swift appointment of a capable and impartial governor, stating that the delay is violating Article 29 of the Constitution of Nepal, the Labor Act, 2017, the Good Governance Regulations, 2008, and the NRB Employee Service Regulations, 2011.
