Kathmandu. A criminal case has been filed against Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank. That’s not a simple case, it’s a case of fraud, organized crime, and banking fraud. After the case was filed against Pandey, bankers are in a dilemma as to what will happen to the post of CEO of the bank. The central bank itself is in internal consultation on what to do next.
Nepal Rastra Bank (NRB) has issued a statement stating that the bank is in good condition and is seeking legal opinion.TAG_OPEN_span_26 Some people have understood that all is well and that Jyoti Prakash Pandey will continue to be the CEO of the bank. But the reality is different.
Automatic suspension in accordance with the BAFIA Employee Regulations
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Some people are arguing that the post of CEO will not be lost if cases of fraud, organized crime and banking fraud are filed under the Bank and Financial Institutions Act (BAFIA).TAG_OPEN_div_52 Some are arguing that Pandey will lose his position only if he is found guilty in the case. But the bitter reality is that now Jyoti Prakash Pandey has been suspended automatically from the day the case was filed, i.e. on Wednesday. The Employees Bye-laws of Nepal Investment Mega Bank approved by Nepal Rastra Bank clearly states that if the government files a criminal case , the employee will be suspended. The same applies to Pandey. This can also be clearly seen in the format of the Employee Bye-laws posted on the website of the Rastra Bank.
NIMB case: Nepal Rastra Bank to take decision after taking legal opinion
}’If you want to save one person, what do you do with more than 500 accused?’
Even within the Rastra Bank, some people understand that Pandey should not be suspended immediately.TAG_OPEN_div_49 But there is another argument within the NRB: “If you want to save one person, what will you do with more than 500 accused?
If we look at the incidents in various branches across the country, more than 500 employees have been suspended from the concerned banks after a case of banking fraud has been registered.TAG_OPEN_div_47 They are fighting the case at home. The bank has said that if they lose the case, they will be dismissed from the bank and they will be paid the salary till the day they win. This has happened in many cases in the past. Those who won the case have returned to work. They have also received all the salaries up to that day according to the work they have done. Those who lost the case have been dismissed. However, they will remain suspended until the case is settled. At present, employees in many banks have been suspended.
Can the CEO not apply the same employee bylaws to small employees?
Legally, the rules governing employees from the CEO to the lower level are the same. In the case of Nepal Investment Mega Bank, all the cases filed at the court on the charge of embezzling the bank’s money have been suspended. Even if we look at the data inside the bank, more than half a dozen employees of the bank are still suspended. Most of those suspended are accused of banking fraud. Now, if Jyoti Prakash Pandey is to be saved, then the question of what to do with his suspension can be raised. If everyone’s suspension is lifted, it will set a wrong precedent.
What happens now?
The Rastra Bank is in internal consultation on this matter. Most of the opinion is that for one person, let’s not kill the spirit of employee bylaws. Some argue that the court should wait for the order after the initial arguments.
A section of Nepal Investment Mega Bank is trying its best to save Jyoti Prakash Pandey while a different faction is trying to remove Pandey and appoint Mahesh Dhakal as the CEO.TAG_OPEN_div_39 This includes a group that played in the last election of the bank.
Not only in Nepal Investment Mega Bank, but many other banks have been suspended due to banking fraud.TAG_OPEN_div_37 If Pandey is trying to save one person now, what will happen if they go to court tomorrow? This issue has also been raised in the central bank.
