Deuba Returns Home: Will Governor Appointment Move Forward or Will the Government Collapse?

Nepali Congress President Sher Bahadur Deuba is returning to Nepal today. Deuba, who traveled to Thailand with his family on April 7, is scheduled to arrive in Kathmandu at 12 PM, according to Krishna Prasad Paudel, Chief Secretary of the Congress Central Office.

Amid intensifying discussions about a government reshuffle within the ruling coalition, including by the Maoist Centre and some Congress leaders, Deuba’s return is expected to stir political waves.

Delay in Governor Appointment
The appointment process for the Nepal Rastra Bank (NRB) governor has been stalled in Deuba’s absence. The government has stated that the process will proceed once Deuba returns. Government spokesperson and Minister for Communications and Information Technology, Prithvi Subba Gurung, has assured that the governor appointment will be finalized soon.

However, the process has been further complicated by the resignation of Dr. Bijayanath Bhattarai, a member of the governor recommendation committee led by Finance Minister Bishnu Paudel. Paudel stated that a new member will be appointed to the existing committee to move forward. “The committee hasn’t met due to various reasons, including a case in court,” he added.

Tug-of-War Between Leaders
Prime Minister and CPN-UML Chairman KP Sharma Oli has been pushing for acting governor Dr. Neelam Dhungana to be appointed as governor, while Deuba has firmly backed NRB Executive Director Dr. Gunakar Bhatt. Eventually, a consensus was reached between the two parties to appoint Bhatt. However, the issue has landed in the Supreme Court, halting progress.

Dr. Bhatt resigned from his executive director post to meet the legal requirement for governor eligibility, as the NRB Act 2002 allows only deputy governors to be recommended. Yet, acting governor Dhungana has not approved Bhatt’s resignation, complicating the process. She has also withheld approval of another resignation by Executive Director Dr. Prakash Kumar Shrestha, instead granting him leave.

“I’m only the acting governor. If everyone starts resigning to become governor, what am I supposed to do?” Dhungana remarked.

Violation of the NRB Act
The NRB Act 2002 mandates that a new governor be appointed a month before the incumbent’s term ends. However, the government has ignored this provision, delaying the appointment of the 18th governor. After former governor Mahaprasad Adhikari’s five-year term ended on April 8, Dhungana was appointed acting governor.

The government’s delay has raised questions about the autonomy of the NRB, a self-governing institution.

Supreme Court Hearing on Sunday
The governor appointment dispute is currently under review in the Supreme Court. Advocates Pratibha Upreti and Bishal Thapa filed a writ questioning Dr. Bhatt’s eligibility. After being listed as “not heard” for four consecutive days, the case is now scheduled for a hearing on Sunday.

Political Risks
With Deuba’s return, there is hope that the governor appointment process will gain momentum. However, tensions within the ruling coalition and talks of a government change could lead to political instability, analysts warn. While Deuba and Oli have agreed on Bhatt’s appointment, the broader power dynamics may impact the process.

Whether Deuba’s return will expedite the governor appointment or escalate the risk of a government collapse remains to be seen in the coming days.