NFC chief Shrestha recalledThe Ministry of Supplies has called back the general manager of Nepal Food Corporation (NFC) Shivahari Shrestha citing incompetence and possible misappropriation of funds.
The Ministry of Supplies has called back the general manager of Nepal Food Corporation (NFC) Shivahari Shrestha citing incompetence and possible misappropriation of funds.
Joint Secretary Surya Prasad Shrestha has been sent to the state-owned company to take his place. According to an official, the ministry wrote to Shivahari Shrestha on Monday saying he had been recalled by order of Supplies Minister Deepak Bohara.
“Shrestha has been accused of delaying decisions and he has also been suspected of being involved in possible irregularities causing financial losses to the company,” said the ministry source. The government appointed Shrestha as the chief of NFC on July 22, 2013.
As per the source, Shrestha has been blamed for his involvement in leasing out NFC’s 40 ropanis of land at Bhadrakali, Kathmandu. Of the 40 ropanis, 33 ropanis were contracted to a Chinese company while another 7 ropanis were leased to Manoj Driving, a private driving institute.
“Shrestha has been blamed for his weak decision making capacity for not annulling the licence of the private institution even after the agreement was terminated over four months ago.”
NFC leased out its land to Manoj Driving on October 3, 2012 for two years. The company receives a rent of Rs35,555 per month for the 7 ropanis of land. In addition, the corporation has been blamed for renewing the contract for another two years before the agreement with the driving institute was terminated.
Following the end of the contract term some four months ago, NFC had even invited bids on October 7. However, NFC has not been able to select a tenant even though bidders had quoted a rent of as high as Rs600,000 per month.
Similarly, Shrestha has been blamed for poor decision making to evict a Chinese company that had rented 33 ropanis of of NFC’ land in 2011. NFC has been charging a mere Rs80,000 per month as rent from the Chinese company besides allowing it to operate without conducting a bidding process for the last five years.
The ministry in its letter to Shrestha has not mentioned any irregularities as the reason for being called back. As per an NFC official, the letter says, “You have been called back to the ministry as your expertise is needed at the ministry.”
National Trading boss Meheta to be sacked
KATHMANDU: The Ministry of Supplies is all set to remove general manager of National Trading Limited (NTL) Satya Narayan Meheta from his post. Meheta has been accused of failing to improve the financial condition of the public enterprise.
As per a ministry source, the ministry will be sending a letter to Meheta on Wednesday. “Mukunda Poudel, joint secretary at the ministry, is likely to be appointed for the position.”
The ministry’s step has come at a time when the government is mulling merging NTL with Nepal Oil Corporation.
Currently, NTL has outstanding dues totalling Rs920 million. Its average annual revenue stands at Rs50 million while its administrative costs amount to around Rs100 million. The enterprise’s financial position started weakening after the Maoist-led government in 2008 closed the duty-free shop it was operating at Tribhuvan International Airport. (PR)