Former central bank governors decline cooperative authority role, forcing govt to amend law
KATHMANDU: The Nepal government has been forced to amend a legal provision after former Nepal Rastra Bank governors unanimously declined to serve on a recommendation committee tasked with appointing the chairperson of the newly formed National Cooperative Regulatory Authority. The authority, established via an ordinance on December 29, 2024, to address mounting issues in the cooperative sector, has faced delays in forming the committee due to the refusals.
The ordinance mandated a three-member committee, including a former governor, to recommend candidates for the authority’s chairperson. However, former governors cited the cooperative sector’s challenges and potential personal repercussions as reasons for declining, prompting the government to replace the governor requirement with a former finance secretary in the amended law, which parliament has passed.
A senior official from the Ministry of Land Management, Cooperatives, and Poverty Alleviation revealed that the process stalled after all former governors rejected informal requests to join the committee. “We acted swiftly after the ordinance, but the refusal of former governors to participate halted the process,” the official said. One former governor confirmed declining the offer, stating, “The cooperative sector’s issues are significant, and I couldn’t risk being part of the problem.”
The authority, operational since January 28, 2025, remains without a permanent chairperson. After interim chairperson Ajurn Prasad Pokharel retired on April 15, the government is reportedly preparing to appoint current ministry secretary Kedarnath Sharma as chairperson, potentially at the upcoming Council of Ministers meeting. This move has raised concerns about the authority’s autonomy, as the government’s repeated appointment of ministry secretaries is seen as treating the regulator like a ministry division.
The authority’s five-member board of directors is also incomplete, with only two members currently serving, hindering its ability to hold meetings. Minister Ballaram Adhikari assured that the recommendation committee would soon be formed to advance the chairperson appointment, emphasizing the government’s commitment to resolving cooperative sector issues.
The ordinance’s reduction of the chairperson’s age limit from 65 to 60 has fueled speculation that the change was made to favor a specific candidate, further raising questions about the government’s intentions.
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