The Supreme Court on Wednesday issued a show cause notice against the government over the appointment of Maha Prasad Adhikari as the new chief executive officer (CEO) of Investment Board Nepal (IBN). Acting on the writ filed by former CEO Radhesh Pant, the apex court also decided to summon the defendants for a discussion before making an interim ruling.

Pant filed a writ against the government on Tuesday stating that the newly appointed CEO did not meet the academic qualification required for the top post at IBN.

“According to Section 13 of Investment Board Act 2011, a candidate having at least a Master’s degree in economics, management, engineering or project analysis and corporate law can be appointed to the post of CEO,” the writ said. “Adhikari hasn’t presented credentials of a Master’s degree in any of the aforementioned disciplines. Instead, he has submitted certificates of a chartered accountant and a bachelor’s degree in business administration which don’t qualify him for the post of CEO.”

Adhikari refused to comment saying the case was sub judice and could not be discussed publicly. IBN sources said that it was the government’s duty to defend Adhikari as it had appointed him to the post.

According to Tribhuvan University’s Directory of Recognition and Equivalence of Educational Qualification, a chartered accountant degree from the Institute of Chartered Accountants of India combined with a bachelor’s degree in any discipline is equivalent to a Master’s in Commerce (MCom). 

The act clearly states that a candidate for the post of CEO must unequivocally  possess one of the aforementioned academic qualifications and there is no provision for any other equivalent degree, the writ further argues. Among the three candidates shortlisted for the CEO’s position, Pant was ranked second. And in the event of the first candidate being disqualified, the job should be automatically offered to him, Pant has argued in the writ.   

The government on June 23 appointed Adhikari, former deputy governor of Nepal Rastra Bank (NRB) as the new CEO of IBN. Adhikari along with outgoing CEO Pant and Saroj Koirala were in the race for the post.

On April 21, the government had formed a three-member panel headed by Finance Minister Bishnu Poudel to look for a new CEO. The panel led by Finance Minister Bishnu Poudel shortlisted four hopefuls and the names of three of them—Adhikari, Pant and Koirala—were sent to the Cabinet.

Pant, a banker by profession, was named CEO by the then Baburam Bhattarai-led government in August 2011. It was during Bhattarai’s tenure that the government had set up IBN as a one-stop service centre for foreign and local investors wishing to bring in investment projects worth more than Rs10 billion.

Immediately after the promulgation of the constitution, the then Sushil Koirala-led government had extended Pant’s term by four years. However, the CPN-UML that was supposed to head the government after the constitution was promulgated didn’t like the Koirala administration’s decision.

The KP Sharma Oli-led government, which was formed in October last year, had tried to remove Pant from IBN. However, it later decided to let Pant continue in office until further arrangements.