Nepal | March 31, 2020

Govt yet to resolve Taragaon ownership issue

Kathmandu, December 10

The government is still looking for a way out to reclaim its ownership in Taragaon Regency Hotel Ltd even after the lawmakers had directed it to do so.

In April, a meeting of the International Relations and Labour Committee (IRLC) of the Federal Parliament had directed the Taragaon Development Committee to take back the government’s ownership from the private partners of the hotel. After IRLC found irregularities in share distribution of the hotel, it had directed the committee to exercise its authority to reclaim its share.

However, the committee is still struggling to reclaim its shares in the hotel.

Addressing the committee meeting held today, Prahalad Neupane, chairperson of the committee, expressed his dissatisfaction with the decreased share of the government in the hotel. “Taking back the rightful shares of the committee in Taragaon Regency is not possible without the help of the government,” he said, stressing that the committee must have 22.67 per cent shares in the hotel. Actually, the government owns 22.67 per cent share in the hotel, which has declined to nine per cent at the moment.

Furthermore, the committee is also seeking the government’s presence in the hotel operation committee.

Earlier, there was a provision of having three representatives from the government — chairperson of the committee, member of the committee and joint secretary of the Ministry of Culture, Tourism and Civil Aviation. However, Neupane said that currently only one representative — chairperson of the committee — from the government has been included in the hotel operation committee.

“The current provision of having only one government representative needs to be scrapped and the earlier provision must be implemented again,” he said, adding, “There is also a need to analyse the investment and profit share of Taragaon Development Committee in the hotel.” Neupane added that the committee is also not aware about the actual financial status of the hotel. Hence, he sought the government’s support for the reformation of ownership model of the hotel.

The meeting was held in the presence of Suresh Lal Shrestha, managing director of Hyatt Regency Kathmandu, CEO Arun Kumar Saraf, committee member Kamaladevi Shrestha and other members.


A version of this article appears in print on December 11, 2019 of The Himalayan Times.


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