Print Edition - 2014-11-02 | MONEY
Ministry seeks removal of PEs from PEB purview
- bid to ease chief appointment process
Nov 1, 2014-
The Ministry of Industry is seeking removal public enterprises (PEs)—in which the general manager’s post is vacant—from purview of Pubic Enterprises Board (PEB). The move is aimed at enabling the ministry to make appointments at PEs under it.
Industry Minister Mahesh Basnet said the ministry has prepared a proposal for the purpose and is holding discussions. “In the proposal, we have proposed the appointment of general managers through an open competition by forming a recruitment committee,” he said. “We believe the process will help hire professional people in the PEs.”
Dairy Development Corporation, Herbs Production and Processing Company, Hetauda Cement Industry, Udayapur Cement Factory, Nepal Orind Magnesiteand now defunct Nepal Drugs Limited, Janakpur Cigarette Factory and Industrial Estate Management Limited are among the PEs that are under the Ministry of Industry.
The PEB has not been able to make any appointment due to the Supreme Court’s interim order against its jurisdiction on September 5, 2013. As a result, the government is making political appointments.
The PEB was formed to select chief executives for PEs based on open competition. The PEB selects three most eligible candidates from among the applicants and recommends their names to the government, which makes the final selection.
Industry Ministry Spokesperson Yam Kumari Khatiwada said the ministry is holding talks on the appointment of chief executives in PEs and the modality of reviving the closed ones.
Nepal Drugs Limited and Janakpur Ciggerate Factory are no longer in operation, while Nepal Orind Magnesite is partially operational. Minister Basnet has also talked about bringing Nepal Drugs Limited and Birgunj Sugar Mill back into operation.
PEB chairman Bimal Wagle said he has heard about the ministry’s plan, but has not been consulted. “It is, however, natural for ministries to seek removal of PEs from PEB’s purview as the latter has been barred from making appointments,” he said.
The government has already removed Rastriya Banijya Bank, Agricultural Development Bank, Nepal Bank and NIDC Development Bank from PEB’s umbrella. The Finance Ministry said the move was taken as there is a separate procedure for appointing chief executives under the Bank and Financial Institution Act.
With the court delaying the verdict on PEB, ministries have started making political appointments in PEs, including in Nepal Telecom. However, Wagle said he would issue a fresh vacancy notice in all PEs where political appointments have been made within two weeks if court clears PEB to perform its duty.
Before the court ordered it to halt the appointment process, PEB had appointed 12 chief executives in different PEs.
Published: 02-11-2014 09:38