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Kathmandu Thursday March 07, 2002 Falgun 23, 2058.
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DTT seeks
deadline extension
By Milan Mani Sharma
KATHMANDU, March 6 :
Deloitte Touche Tomatsu (DTT), an American consultancy firm that
recently won the management contract for Rastriya Banijya Bank (RBB),
has asked the Nepal Rastra Bank (NRB) to extend the deadline for
take-over of the bank’s management by fifteen days. The request came
prior to the expiry of the deadline on March 15.
The central bank at the
time of signing the US$ 5.8 million two-year contract with DTT on
January 31 had asked the consultancy firm to submit a comprehensive
management plan within 45 days from the day of signing of the
contract.
Sources at the NRB said
that the DTT was prompted to extend the deadline for the take-over
given the fragile security status in the country. The request from the
foreign consultancy firm closely follows Nepal’s enlistment in the
US government’s travel advisory as a state having security problems.
"In a letter issued
by the DTT to the central bank, the firm has expressed concern over
the security status of the country and has asked the central bank for
additional 15 days to take over the management," said highly
placed officials of the central bank on condition of anonymity.
However, the source
informed The Kathmandu Post that the central bank is yet to respond to
the firm’s request. Nevertheless, the response from the NRB is
likely to be in the affirmative, he said.
The central had asked the
DTT to develop comprehensive management plan to ensure that the
RBB’s management is carried out smoothly. The plan is to be first
approved by the central bank before the contract winner can actually
take-over the management of RBB, the state-owned bank termed
technically insolvent two years back.
The new management has
been team will take complete control of day to day banking operation,
provide immediate help to stabilize the bank’s operation and will be
responsible to restore its financial health at an acceptable level.
For this DTT will be
working closely with a locally recruited accountancy team (recruited
as part of these management contracts) to develop and strengthen the
accounting capacity, incept a comprehensive human resource policy and
to design and implement an information technology plan.
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