Incapable allies dragging capable Governor Adhikari down

KATHMANDU, MARCH 3: Mahaprasad Adhikari, who began his career as an assistant at Nepal Rastra Bank (NRB) and amassed nearly 30 years of experience, rose to the position of Deputy Governor after earning the trust of then-Governor Dr. Yuvaraj Khatiwada. Known for his diligent approach to policy matters, Adhikari is widely recognized as an expert in the banking and financial sectors.

During Nepal’s previous placement on the Financial Action Task Force (FATF) grey list, Adhikari played a key role in coordinating with government agencies to successfully remove the country from the list. However, under his leadership as Governor, Nepal has unfortunately been re-listed on the grey list for a second time.

While serving as Deputy Governor, Adhikari strongly supported Dr. Khatiwada in several key initiatives. However, under his own leadership, Adhikari now faces the challenge of a lack of reliable allies, leading to increased controversies and challenges in some of his endeavors.

The two Deputy Governors appointed by the government, Bam Bahadur Mishra and Dr. Neelam Dhungana Timsina, are politically appointed and have not offered the same proactive support that Adhikari once provided. As a result, the central bank has struggled to take decisive action to prevent market disruptions, as was successfully done in the past.

In addition, NRB has faced difficulty addressing a minor technical issue—organizing the office in its newly completed building. This issue can be attributed to the underperformance of Deputy Governors Mishra and Dr. Dhungana.

Adhikari also faces challenges at the executive director level. One such example is Ramu Poudel, the Executive Director of the Financial Company Supervision Department, who was assigned to this role despite lacking expertise in supervision. Poudel has struggled to implement policies effectively, leading to dissatisfaction among employees and the banking community. His tendency to avoid discussion and impose his own views has hindered meaningful decision-making in the supervision department.

Similarly, Daya Ram Sharma, head of the Financial Institutions Supervision Department, has demonstrated weak leadership. His focus on reducing workdays and daily allowances rather than improving department output has hindered progress. Sharma has shown reluctance to act on inspection reports or take necessary measures against problematic financial institutions, allowing wrongdoers to benefit.

Despite their rapid promotions, these senior officers have failed to contribute meaningfully to the NRB’s goals, negatively impacting the bank’s overall performance.

In conclusion, while Adhikari’s leadership has faced its own set of challenges, the lack of competence and cooperation within his core team has significantly undermined the effectiveness of the central bank. As a result, despite his capabilities, Adhikari is encountering increasing difficulty in achieving his objectives.