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Kathmandu Thursday March 29, 2001 Chaitra 16 2057.
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Rawal reinstated NRB Chief
By Bhaskar Sharma and Prem Khanal
KATHMANDU, March 28 - In a dramatic turn of
events, the Supreme Court today ordered the government to reinstate the former governor of
Nepal Rastra Bank (NRB) Dr Tilak Rawal, who was unceremoniously sacked late August last
year.
Divisional Bench comprising Justice Krishna
Jung Rayamahaji and Justice Top Bahadur Singh gave the decision in favour of Dr Rawal
today. Dr Rawal had filed a petition at the Supreme Court on September 6 last year
demanding annulment of the government decision to replace him as the chief of the central
bank by Dipendra Purush Dhakal, former Tourism Secretary.
Announcing the court verdict, Justice
Rayamahaji said, "An important and reputed post like that of NRB Governor should not
be dealt with irresponsibly… rather such appointments should be done according to the
due process of law."
Dr Rawal had filed the petition arguing that
his ouster was a violation of the Nepal Rastra Bank Act, 2012, which categorically
stipulates the term of the Governor as five years.
The Supreme Court’s decision comes as an
embarrassment to the government, which had sacked Dr Rawal seven months ago. More than a
legal wrangling, Dr Rawal’s entry and exit from the central bank was a political
battle within the ruling Nepali Congress (NC). The then Prime Minister Krishna Prasad
Bhattarai had appointed Dr Rawal to the coveted post of the Governor despite resistance by
his Finance Minister Mahesh Acharya. Dr Rawal commands a strong backing of Sher Bahadur
Deuba, Bhattarai’s protégé and Koirala’s challenger in NC.
Acharya had then resigned protesting Dr
Rawal’s appointment, which accelerated the brewing dissent against Bhattarai,
eventually leading to his ouster.
It was Acharya’s return to the Finance
Ministry under Koirala government that led to the unceremonious sacking of Dr Rawal.
The controversy surrounding Dr Rawal’s
appointment had even dragged the World Bank (WB) into controversy. Following Dr
Rawal’s appointment and Acharya’s exit, The World Bank country office had issued
a public statement warning grave consequences for government’s credentials as a
genuine reformer.
"Acharya’s departure and the
developments leading up to it would send a very wrong signal to many donors and
international friends of Nepal who thought that Nepal had finally emerged from the
political instability of the past five years," the statement had quoted.
However, Dr Rawal’s unexpected exit from
the central bank last year had come as a sweet music to the donor community, especially
the WB, which had publicly expressed unhappiness over his entry into the central
bank’s leadership.
A jubilant Dr Rawal, talking to The Kathmandu
Post today said, "I was removed by the government unconstitutionally, and now I have
received justice from the respected Supreme Court."
"I will work for the betterment of the
country’s financial system and I anticipate full co-operation of other
partners," he said, adding, "I look into implementation. And I don’t buy
ideas. If there are flaws, then I will reform them."
Meanwhile the outgoing Governor Dipendra
Purush Dhakal told The Kathmandu Post late evening that he would respect the verdict of
the Supreme Court. He said, "I respect the Supreme Court’s decision."
However, he declined to comment further.
Finance Minister Dr Ram Sharan Mahat too
refused to comment on the court verdict. But said, "Whoever comes as the governor, it
makes no difference in the policy level since all work has to be done in a co-ordinated
approach."
Meanwhile, main opposition lawmaker and
former National Planning Commission (NPC) member Dr Dilli Raj Khanal expressed concern
over the frequent changes in the highest seat of the central bank.
"Politicization of the coveted post has
affected the implementation of the financial sector reforms," said Khanal. Such
changes will negatively impact the supervision, monitoring and leadership of the central
bank, he said.
Experts involved in the ongoing financial
sector reform projects express concern that reinstatement of Dr Rawal as the governor
could squander the reform process. However, Dr Rawal today expressed commitment towards
the management hand over of the two largest commercial banks. "The two banks
definitely need comprehensive reform. There is no going back," he said.
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