Nepal’s Supreme Court will decide on the legality of the Central Bank’s governor’s suspension today. On April 18, Nepal’s Central
Nepal’s Supreme Court will decide on the legality of the Central Bank’s governor’s suspension today.
On April 18, Nepal’s Central Bank’s Governor, Maha Prasad Adhikari, was suspended following an investigation over Adhikari leaking sensitive government information and not fulfilling his duties. The probe was initiated by Finance Minister Janardan Sharma, who also leads a key party in the coalition government. In response to the suspension, Adhikari petitioned the Supreme Court to issue an interim order to halt the probe. On April 19, Nepal’s Supreme Court issued a provisional order allowing Adhikari to resume his duties. Further, the court ordered both the Governor and the government to appear today to rule on the former’s motion.
Expect this case to devolve into a scrutiny of Sharma, especially over allegations that he attempted to order the Central Bank to release a $3.3 million deposit of suspicious origin. This deposit transaction was previously investigated by Nepal’s Department of Money Laundering Investigation. Sharma allegedly pressured the Prime Minister into agreeing to probe Adhikari. Expect the scrutiny on Sharma to undermine confidence in the government as opposition parties use the legal spat to evidence the coalition government’s inability to work together.
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