Kathmandu. Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank, should have been suspended on the same day the case was filed against him on the charge of fraud, organized crime and banking offense. However, the bank’s website still says that he is the CEO.
The bank is trying to make a statement that Pandey can become CEO until the criminal case is proved. He is trying to make such a commentary by showing Bafia. However, the bank’s employee bylaws say that Pandey will automatically be suspended until the case is resolved.
Suspension of Nepal Investment Mega Bank, CEO in legal crisis
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Officials of Nepal Rastra Bank (NRB) are clear that Jyoti Prakash Pandey has been suspended.TAG_OPEN_div_63 The Employees Bye-laws of Nepal Investment Mega Bank also clearly state that employees will be suspended when a criminal case is registered. The Nepal Rastra Bank (NRB) has approved the by-laws.
This means that the NRB should have stood in favour of Jyoti Prakash Pandey by changing the bye-laws overnight, otherwise the NRB should not be allowed to remain the CEO of the bank accused of fraud, organized crime, and banking offenses.TAG_OPEN_div_61 Again, there is a problem – it is not as easy for Pandey to change the employee bylaws overnight as expected, there is a legal problem to keep Pandey as CEO.
If we want to save Jyoti Prakash Pandey, the essence of the system has to be changed. In doing so, there are a lot of problems in the banking sector. Therefore, the Rastra Bank is not in favor of changing the Employees Bylaws immediately for Jyoti Prakash Pandey.
Another legal confusion when everyone on the board is absconding
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All the directors of Nepal Investment Mega Bank except Madan Acharya are absconding.TAG_OPEN_div_56 The police have issued an arrest warrant, the court has asked them not to arrest him immediately and a case has been filed in the court keeping 6 operators in the absconding list.
This means that the directors of Nepal Investment Mega Bank cannot do anything as directors. The court has asked them not to arrest them immediately, but they are absconding in the court. Any decision made by them in the bank while they are on the absconding list in the court may not be legally recognized. Lawyers argue that any decision taken by the absconding people in the court will not be legally recognized.
And neither the board, nor the CEO. Some people think that this will give the wrong meaning again.
So, is it an option for the NRB to send a representative to the board of Nepal Investment Mega Bank?TAG_OPEN_div_50
“This could send another wrong message,” NRB officials said.TAG_OPEN_div_49 Except in the case of takeover, the fact that the central bank is running the board can send a message that the bank is collapsing. ‘
