In yet another twist in the on-going row over the appointment of the new Governor at the Nepal Rastra Bank (NRB), Office of the Attorney General (OAG) has told the Prime Minister that Dr Yuba Raj Khatiwada, a key contender, is ineligible for the top job.

Reports said quoting sources at the OAG as saying that Attorney General, Mahadev Prasad Yadav, has maintained that an NRB staff of the deputy governor rank alone can compete for the post of Governor of the central bank.

Dr Khatiwada, who is serving as member of National Planning Commission, still holds the post of executive director at the NRB. He is one of three probable candidates recommended by a selection committee led by Deputy Prime Minister Bharat Mohan Adhikari.

Prime Minister Sher Bahadur Deuba had decided to seek advice from the OAG after UML members in the cabinet reportedly lobbied hard to appoint Dr Khatiwada as the new Governor.

In a smart move, Prime Minister’s Office then sought the advice of the OAG, which is usually not made public.

Major newspapers on Saturday, however, quoted sources as saying that OAG had expressed reservations over the nomination of Dr Khatiwada by the Adhikari committee.

Other probable candidates for the post of Governor recommended by the committee include economist Prof. Dr Parthiveshwor Timilsina and Deputy governor at the NRB, Bijayanath Bhattarai.

It was not clear what the Prime Minister would do upon getting advice from the OAG. Earlier, reports said the premier was in favour of appointing chief secretary Dr Bimal Koirala, who also enjoys support of the donor community, to the crucial post.

A row erupted between the coalition partners and spilled into the public domain after the committee led by DPM Adhikari did not include the name of Koirala as one of the three probable candidates, according to reports.

The new Governor will succeed Dr Tilak Rawal, who is facing criticism for allegedly failing to steer ahead financial sector reform programmes, including recovering `bad loans’ of the two public sector banks– Nepal Bank Limited and Rastriya Banijya Bank. nepalnews.com pd Jan 08 05