Raises A Storm
Difference of opinion between two commissioners along with concerns expressed by World Bank and employees has put CIAA action in huge controversy
By SANJAYA DHAKAL
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Bhattarai: Faces controversial action |
Even within the Commission for Investigation of Abuse of Authority (CIAA), the decision to file case of corruption against governor of Nepal Rastra Bank (NRB) Bijaynath Bhattarai and director Surendra Man Pradhan was not made unanimously.
Of the two commissioners currently handling the anti-graft body, Lalit Bahadur Limbu favored filing the case while Bed Prasad Shiwakoti differed with the opinion. Later, the opinion of Limbu prevailed as he is the acting chief commissioner.
The two remain suspended since the filing of corruption case at the Special Court. The Court has freed Pradhan on bail amount of Rs 50,000 while Bhattarai has been asked to appear for court hearing within 15 days to face charges of corruption of Rs 24.5 million.
Reports say that the CIAA has charged that the alleged officials have embezzled the amount in terminating the contract of American firm IEF Inc in association with KPMG, Sri Lanka in February 2006 for financial sector restructuring project, which is being executed with the assistance of the World Bank.
However, the case of corruption has generated a huge controversy. Even employees of Nepal Rastra Bank (NRB) have joined hands to protest CIAA action. They went to the office of CIAA and picketed it on Sunday to show their protest.
The employees have accused that the CIAA action was taken at the behest of finance mafia and bank loan defaulters black-listed by the NRB. President of central bank employees association Basanta Raj Pandey has warned that the CIAA action could affect the financial sector reforms program. "The contract of foreign management in Nepal Bank Limited is ending on July 21. There is uncertainty what happens after that. A program in which Rs 7 billion have already been invested cannot be put under such uncertainty. The government and the CIAA will be responsible for any problem," he said at a press meet.
The employees have even said they have proof to show no corruption was committed in the whole process.
Meanwhile, the case could not have come at worse time for the government. Finance Minister Dr. Ram Sharan Mahat has already said he was 'stunned' by the CIAA action. He expressed concern over the financial sector reforms program. The program is being implemented with the help of World Bank and the latter has already stated its worries. Dr. Mahat knows it well that worrying donors like WB, which also gives budgetary support, at this crucial hour when he is preparing budget for coming fiscal year is not a good idea.
The World Bank has already issued a statement hoping for professional investigations based on credible evidence. "The World Bank's attention has been drawn to the controversy surrounding alleged fraud in a World Bank financed contract administered by the Nepal Rastra Bank," states a press release issued by the Bank. "We take these allegations very seriously and hope that the investigations are carried out in a professional manner and on the basis of credible evidence," said Susan Goldmark, the newly appointed World Bank Country Director for Nepal, in the statement.
In the statement, WB has said that their initial internal review of the "allegations and the circumstances around them" have not shown any wrongdoing. "At this point we can confirm that the World Bank provided it's no objection to both the award and termination of Nepal Rastra Bank's contract with IEF Inc. under routine World Bank procedures. Furthermore, we have received a copy of the consultant's Inception Report, which was the basis for Nepal Rastra Bank's release of payment to IEF Inc.," Goldmark added.
"More importantly, we hope that the uncertainty will clear soon so that Nepal's attention can be refocused on the important task of reforming the financial sector," said Goldmark. "We hope that these recent developments do not undermine the morale of staff of the Nepal Rastra Bank who are leading these efforts in a very challenging environment," she said.
Adding to the mystery, the CIAA, in its charge-sheet has mentioned that Bhattarai has been avoiding arrest. This charge falls flat given the fact that Bhattarai was found meeting with Finance Minister in Finance Ministry on the same day the CIAA filed the case at the court. "I have been attending office. You can verify the register there. I am doing my official duties. How can I be evading arrest?" asked Bhattarai, who has been provided police security by the government since a long time.
