The central bank deputy governor Sheeba Raj Shrestha has been suspended.
After the central bank board meeting this morning formed an inquiry committee to probe into allegations against Shrestha, he has been suspended from his post, according to the Nepal Rastra Bank (NRB) Act-2002.
The central bank has formed a three-member committee led by its board director Sri Ram Poudyal, and Dr Subodh Kumar Karna and Ramjee Regmi as the members. The probe committee has been tasked to investigate within a month and submit the report. Based on the probe report, the government will either remove him or give clean chit. If the probe committee finds him guilty, the government will seek clarification and remove him, if his clarification unsatisfactory. “Or he will be given a clean chit and he will continue as the deputy governor,” according to the central bank.
Following a written request of the Finance Ministry last week based on a cabinet decision of October 17, the central bank has started investigation into Shrestha over a dozen allegations on his ‘misconducts that threaten the financial stability of the country’. The central bank had called for a board meeting today to form a probe committee to investigate the allegations against Shrestha.
Shrestha has been alleged of his involvement in compromising financial stability, acting dishonestly or with mala fide intention for personal gains to protect financial wrongdoers, promoting money laundering and taking facilities unlawfully during his foreign trips, according to a board member of the central bank.
According to the NRB Act-2002, the government shall remove deputy governor from the office on the basis of recommendation made by an inquiry committee.
In its letter, the Finance Ministry stated that the cabinet decided to initiate investigation over those allegations also due to a written request from the Department of Money Laundering Investigation (DMLI) for support over its investigation on a money laundering offense.
Shrestha said that all his decisions are based on law, and as per consultations with the central bank management and board members. “Thus, if I was wrong in taking any decision, it also means that the entire central bank management and the board was wrong,” he said, pledging to fully support the probe. He also urged for fair investigation on charges levelled at him.
Though, a central bank board member also disagrees a probe committee on him as the board is also involved in the decision making process, the central bank has formed a committee – according to the NRB Act-2002 – under one of the board member with other two board members. “If Shrestha is found guilty, the entire board members, who are investigating him are also to be blamed as they are also involved in the decision making process,” according to former governor of the central bank Deependra Bahadur Kchhetry.
Shrestha refuting allegations against him said that the allegations are aimed at tarnishing his credibility amid the race for the post of the governor. “The probe is a ploy to remove me from the race of becoming central bank governor,” said Shrestha, whose five-year term as deputy governor is expiring in 16 months. A deputy governor is also considered a contender for the governor.
The incumbent governor Dr Chiranjibi Nepal is retiring in next five months.
After the central bank board meeting this morning formed an inquiry committee to probe into allegations against Shrestha, he has been suspended from his post, according to the Nepal Rastra Bank (NRB) Act-2002.
The central bank has formed a three-member committee led by its board director Sri Ram Poudyal, and Dr Subodh Kumar Karna and Ramjee Regmi as the members. The probe committee has been tasked to investigate within a month and submit the report. Based on the probe report, the government will either remove him or give clean chit. If the probe committee finds him guilty, the government will seek clarification and remove him, if his clarification unsatisfactory. “Or he will be given a clean chit and he will continue as the deputy governor,” according to the central bank.
Following a written request of the Finance Ministry last week based on a cabinet decision of October 17, the central bank has started investigation into Shrestha over a dozen allegations on his ‘misconducts that threaten the financial stability of the country’. The central bank had called for a board meeting today to form a probe committee to investigate the allegations against Shrestha.
Shrestha has been alleged of his involvement in compromising financial stability, acting dishonestly or with mala fide intention for personal gains to protect financial wrongdoers, promoting money laundering and taking facilities unlawfully during his foreign trips, according to a board member of the central bank.
According to the NRB Act-2002, the government shall remove deputy governor from the office on the basis of recommendation made by an inquiry committee.
In its letter, the Finance Ministry stated that the cabinet decided to initiate investigation over those allegations also due to a written request from the Department of Money Laundering Investigation (DMLI) for support over its investigation on a money laundering offense.
Shrestha said that all his decisions are based on law, and as per consultations with the central bank management and board members. “Thus, if I was wrong in taking any decision, it also means that the entire central bank management and the board was wrong,” he said, pledging to fully support the probe. He also urged for fair investigation on charges levelled at him.
Though, a central bank board member also disagrees a probe committee on him as the board is also involved in the decision making process, the central bank has formed a committee – according to the NRB Act-2002 – under one of the board member with other two board members. “If Shrestha is found guilty, the entire board members, who are investigating him are also to be blamed as they are also involved in the decision making process,” according to former governor of the central bank Deependra Bahadur Kchhetry.
Shrestha refuting allegations against him said that the allegations are aimed at tarnishing his credibility amid the race for the post of the governor. “The probe is a ploy to remove me from the race of becoming central bank governor,” said Shrestha, whose five-year term as deputy governor is expiring in 16 months. A deputy governor is also considered a contender for the governor.
The incumbent governor Dr Chiranjibi Nepal is retiring in next five months.
No comments:
Post a Comment