Kathmandu, November 3

Shiba Raj Shrestha, one of the deputy governors of Nepal Rastra Bank (NRB), has landed in controversy after the Cabinet last week ordered the Ministry of Finance (MoF) to carry out a probe citing Shrestha’s working procedure at the central bank might threaten the country’s financial stability.

Following the Cabinet’s direction, the MoF has formally asked NRB to investigate Shrestha’s involvement in jeopardising the country’s financial stability.

Shrestha himself informed The Himalayan Times about the direction from the Cabinet and MoF’s official statement asking NRB to investigate him.

“The Cabinet has primarily questioned my decisions and directions I had given. It has alleged that my decisions were not compliant with the laws. It has also said that I was not supportive in tackling money laundering and other issues,” informed Shrestha, adding that all these charges were false and were aimed at tarnishing his credibility amid the race for the post of the governor.

NRB Governor Chiranjibi Nepal is retiring after around five months. Deputy governors are often the primary contenders for the post.

“I have been accused of taking decisions that do not fall under my jurisdiction and department,” Shrestha said, adding that the claim did not hold water because ‘all decisions at the central bank are taken following discussions with the management and the board’.

“None of the so-called decision taken under my jurisdiction was my sole decision,” he said, appealing for a fair and transparent investigation.

Although a board meeting of NRB was held today and various media reported that Shrestha’s issue would be discussed and he would be suspended, discussion related to the deputy governor was not on the agenda.

However, another board meeting has been called for Monday to deal with the Cabinet’s direction on Shrestha.

Shrestha, who had attended the NRB board meeting today, said the matter related to Cabinet’s direction was not formally discussed during the meeting. However, there were informal discussions on the media reports regarding the Cabinet’s direction, he informed.

As per the provision of the Nepal Rastra Bank Act 2002, the government can suspend a deputy governor based on the recommendations of an inquiry committee formed under the coordination of a retired justice of the Supreme Court. The Monday’s board meeting of NRB is expected to form the inquiry committee and may suspend Shrestha from his post.