Row over NT chief appointment ends

KATHMANDU, SEP 28 - A dispute over the appointment of Buddhi Prasad Acharya as managing director at Nepal Telecom (NT) has finally come to an end.

A struggle committee, protesting the appointment, reached a nine point deal with the NT board of directors on Friday. The agitating staff, who had been demanding the MD’s resignation, have withdrawn their protest programmes.

The end of the row has also opened the way for the company to come  up with promotional schemes for the festive season. The state-owned telecommunication service provider’s plan to unveil festive schemes was stalled after engineers (technical staffs) launched protest against the appointment of a “non-technical” person as MD. 

The technical staff had launched an indefinite strike, demanding  the company compulsorily have an MD with a technical background. Acharya hails from administrative background. He is a chartered accountant (CA).

Acharya said the agreement was reached after both the sides agreed to fixing the criteria for the appointment of the chief. So far, the government appointed an MD at NT from among deputy managing directors.

NT has 12 deputy managing director posts. “In the days to come, the appointment of MD will be more systematic. We will develop a process, based on which the appointment will be made,” said Acharya.

NT will soon establish a three-member committee, comprising one technical staff and one administrative staff to draft the criteria. The third member will be a technical person who is not from the company.

The committee will prepare a report which will be validated by the board directors. “So far, the appointments are made based on the assessment of the minister concerned. Once the new system comes into the effect, a committee will recommend three DMDs based on their qualification and performance, from among whom an MD will be selected,” said Dinesh Panthi, coordinator of the struggle committee.

As per the Company Act, the NT board has the right to appoint the MD. The government, however, is of the view since it has 92 percent stake in NT, it should have the right to make the appointment.

According to Panthi, the agreement also has it the new MD will be selected within a year and Acharya have to pave the way for the selection of the new MD. The government appointed Acharya as NT’s MD in the first week of September for a two-year tenure.

However, sources close to Ahcarya said the agreement states the criteria for the appointment of MD will be set within a year and will be submitted to the government. “No such decision has been made, under which the existing MD will make the way for the new one. He will be actively involved in setting up the criteria,” the source said. The agreement, according to Panthi, also states: “Once the MD completes his/her tenure, he/she will have to retire from the institution rather than serving in the capacity of DMD.”

Acharya said since his motive is to strengthen the company, he will be doing the needful. “I am making decisions as an MD of the company rather than an individual. I will accept whatever the government decides and move on with a positive mindset,” he said. 

The meeting has also agreed to conduct and complete a study within three months for the restructuring of the company and launch a Voluntary Retirement Service (VRS) scheme.