Governor Bhattarai refutes CIAA charges

Claiming the allegations fabricated and contradictory, governor of Nepal Rastra Bank (NRB) Bijaya Nath Bhattarai has strongly refuted the allegations against him, which was filed by Commission for the Investigation of Abuse of Authority (CIAA).

"I will face the case and present before the court all the evidence," governer Bhattarai told a group of journalist in the capital on Saturday, adding that the allegations made by CIAA are baseless and without adequate investigations.

Bhattarai said that he will defend himself against all CIAA charges filed at the Special Court on Friday, which suspended him.

Bhattarai also charged that persons who have been affected by the successful implementation of financial sector reforms were behind the conspiracy. Those who want to doom the reform process are behind this dirty game, Bhattarai said.

Bhattarai said that the NRB had singed an agreement with US based consulting form IEF INC, and not with KPMG, Sri Lanka, to strengthen its inspection and supervision capacity.

KPMG, Sri Lanka was just a partner agency and was sub-contracted to carry out agreed work in Nepal by the IEF Inc, Bhattarai added.

As the IEF INC was main contractor, NRB was dealing with IEF Inc before the contract was terminated, owning to its failure to perform in a timely and satisfactory manner. That is why, the first tranche of the payment, totaling US$ 68,277 was made to IEF Inc and it was obvious on the part of KPMG to say that it didn't receive payment, Bhattarai added.

The CIAA claimed that the amount was paid to a fake company with the intention of embezzling the amount on the basis that KPMG Sri Lanka informed that it never received the money.

Why CIAA asked the KMPG Sri Lanka, instead of IEF INC, about the first tranche of consultation fee is matter of surprise, Bhattarai said.

Governor Bhattarai also expressed surprise why the CIAA didn't contact Rajan Maskey, who was appointed as the authorized local representative of IFC Inc during its investigation. Instead of interrogating with the IFC Inc's local representative, why the CIAA was corresponding with KMPG Sri Lanka, which was only a sub-contractor to the agreement, Bhatarai queried.