Author: space4knews

April 22, Kathmandu – The Health Insurance Board, already burdened by financial turmoil, is now facing a leadership vacuum. Following a ministerial decision by Health and Population Minister Nisha Mehta to transfer acting Executive Director Dr. Krishna Paudel back to Gajendranarayan Singh Hospital, the board has been left without leadership.

With no clear indication about who will take charge immediately, the board is currently in disarray. Due to the absence of explicit directives, Dr. Paudel is preparing to return to Gajendranarayan Hospital.

Earlier, on January 18, the former Executive Director Dr. Raghuraj Kafle resigned, citing his inability to continue in the post. Then Health Minister Dr. Sudha Sharma Gautam had appointed Dr. Paudel, Chief of the Ministry’s Policy, Planning and Monitoring Division, as acting executive director.

For the past three months, the board has remained without formal leadership. The government has yet to initiate the necessary procedures for appointing a new director. According to officials from the Ministry of Health, the executive director position must be filled through an open competition conducted by the Public Service Commission, which would take approximately two months after advertisement.

Responding to the transfer letter, Dr. Paudel stated that he has not received clear instructions to continue the health insurance operations.

“I am being transferred as an administrative deployment; I will leave once relieved,” Dr. Paudel said. “My transfer letter only mentions the transfer. As a government employee, I must go wherever assigned.”

After taking over the ministry, Minister Mehta had engaged in discussions with representatives of the insurance board. During the talks, board officials reported that delays in claim payments to service provider hospitals have forced some hospitals to suspend insurance services.

Minister Mehta had also assured that the insurance program’s crisis would be resolved. However, with the board now leaderless, the situation has worsened.

With service provider hospitals awaiting billions in unpaid claims, the program is becoming ineffective. Some major hospitals have already discontinued services. The insurance program, which covers nearly 10 million citizens in Nepal, is on the brink of collapse due to failure to disburse billions to hospitals.

According to the latest Health Insurance Board report, the amount owed to service provider health institutions has exceeded 1.6 billion Nepalese rupees.

Daily insurance claims amount to roughly 80 million rupees. The board is under an additional financial burden averaging about 250 million rupees per month. To operate the program regularly, an annual budget of 2.5 to 2.6 billion rupees is required.

However, the gap between income and expenditure is stark. Annual premium collections from insured citizens stand at approximately 400 million rupees only. Even when combined with an annual government subsidy of 1 billion rupees, the total falls short of half the required expenditure.

According to Vivek Malla, the Information Officer of the insurance board, claims worth around 600 million rupees have been reviewed and payment approval documents forwarded from the Ministry of Health to the Ministry of Finance.

Claims worth about 1 billion rupees are still pending review. Malla stated that payments exceeding 1.6 billion rupees to service providers remain withheld.

He also disclosed that the funds in the board’s account have already been exhausted on prior payments.

“Currently, the board has no additional payment source,” Malla said. “It is difficult to provide a reliable timeline for when payments will be made.”

In the nearly ten years since the program began, interest in health insurance has grown. However, the number of those not renewing their insurance has risen sharply. To date, 9,874,415 citizens are enrolled, but only about 5,970,000 remain active. Out of all insured individuals, only roughly 60 percent remain active. Nearly 40 percent not renewing raises concerns about the program’s sustainability.

The insurance board warns that failure to address the financial crisis immediately could create more complex challenges. Due to non-payment, services are affected, leading to increased public dissatisfaction and declining renewal rates.

“Previously, the renewal rates ranged from 60 to 80 percent, but with services impacted, there is concern it could fall below 50 percent,” an official from the board said.

Across the country, over 505 health institutions provide services daily to 50,000 insured members. The rapid increase in claim submissions and the shortage of staff for claim reviews have created management challenges, according to the board.

Service usage rates are high. Approximately 93 percent of insured individuals have utilized some form of health service. In the fiscal year 2022/23, 89.1 percent utilized services, increasing to 92.4 percent in 2023/24 and 92.8 percent in 2024/25, according to the data.

A weak revenue base combined with rising claims has caused severe financial imbalance in the program, raising concerns over the long-term viability of health insurance.

One board employee described the current situation as extremely sensitive.

“Health insurance is in a critical condition. The board’s directors have not completed their tenure,” the employee said. “Without financial support from the government, the insurance program risks shutting down.”

On January 4, former Health Minister Dr. Sudha Sharma had complained to Prime Minister Sushila Karki about the Ministry of Finance’s lack of support.

Dr. Sharma expressed frustration about not receiving necessary assistance from the Finance Ministry despite her dedicated efforts.

“I earnestly request again before everyone: if financial grants are not provided, the insurance program will shut down,” Dr. Sharma warned. “In such a case, allow hospitals under the Health Ministry to close as well.”

Disputes had also arisen between Finance Secretary Ghanshyam Upadhyay and Minister Sharma. Upadhyay stated that the ongoing insurance program is not based on an ideal model and that the Finance Ministry cannot allocate additional budget. With the board’s leadership positions empty amid financial crisis, the insurance program faces increasing uncertainty.

April 22, Kathmandu – The public uprising that began under the slogan of good governance initially led to the emergence of the Janakal movement. Subsequent general elections were also contested on the promise of good governance. Nearly two-thirds of the lawmakers from the Rastriya Swatantra Party (RSP), now members of the House of Representatives, had pledged to make ending corruption and malpractice their primary objective.

These lawmakers had accused traditional political parties of perpetuating malpractice and abusing parliamentary privileges. Many RSP leaders currently serving as MPs have accused Congress, UML, Maoist parties, and their leaders of enacting laws favoring themselves and exploiting coalition practices for policy-level corruption.

However, as soon as they secured a commanding majority in the House of Representatives, they took measures contrary to their earlier commitments. The Rastriya Swatantra Party drafted rules of procedure favoring their chairman, which contradict the country’s existing legal standards, as their first legislative act in parliament.

The draft rules include provisions exempting MPs accused of corruption and money laundering from suspension.

If these rules are enacted by the House, MPs facing or potentially facing corruption and money laundering charges will continue to perform their duties without suspension.

Among those benefiting most immediately from this arrangement will be RSP Chairperson Ravi Lamichhane.

Lamichhane, who is currently facing a money laundering case in the Kaski District Court, will be able to participate in parliamentary activities based on this new rules draft. In the future, MPs charged with corruption or money laundering will not be barred from performing their parliamentary roles.

Two Controversial Provisions

The draft rules prepared by the House of Representatives Rules Committee contain two significant provisions that legally facilitate MPs accused of abuses of power or economic crimes to remain in convenient positions.

Rule 247(3) of the draft differs from existing laws regarding suspension. It states that MPs will be suspended only if they are imprisoned in criminal cases punishable by three years or more, or where there is moral deterioration. The suspension lasts only during the period the MP is in prison.

This imposes two conditions: first, that the criminal offense carries a prison sentence of at least three years, and second, that the MP must actually be imprisoned. Suspension is limited to the imprisonment period only.

This provision contradicts several existing laws. Moreover, the draft declares that, in case of conflicts, these rules will take precedence as federal law and parliamentary privilege.

Rule 259 states, “Notwithstanding any provisions in existing law, these rules shall apply as federal law and remain as parliamentary privileges of the members.”

The rules also specify that MPs issued arrest warrants but who evade arrest and are absconding will be considered suspended. However, the judicial interpretation included in the draft covers cases from district courts up to the Supreme Court but excludes Special Courts.

Since Special Courts handle corruption and irregularity cases, excluding them potentially allows MPs convicted by Special Courts to evade suspension.

Conflicts With Three Existing Laws

If passed by the House, the rules draft is set to clash with at least three existing laws. Two of these have very similar provisions, while the third differs slightly.

The Anti-Corruption Act, 2059 (2002) Section 33(1) stipulates automatic suspension of persons accused of corruption, including public servants and MPs, either while imprisoned or until the case is resolved.

Similarly, Section 17 of the Commission for the Investigation of Abuse of Authority Act, 2048 (1991) provides for automatic suspension of public officials facing corruption charges, lasting the duration of imprisonment or until the case is adjudicated.

The Money Laundering (Offense and Punishment) Act also includes provisions for automatic suspension of public servants, including MPs, when cases are filed, as stated in Section 27.

These laws mean that public officials under prosecution or serving prison time should automatically be suspended.

Senior Advocate Tikaram Bhattarai argues that laws and rules contradicting the Constitution should not be made. All legal instruments must follow the principle of supremacy of the Constitution and legal hierarchy.

He explains, “If federal laws mandate automatic suspension of public officials, parliamentary rules cannot nullify that. Such provisions are constitutionally invalid.”

Impact of the Rules

Under the new draft rules, MPs who are not imprisoned will not be suspended, and even if convicted by Special Courts, suspension will not occur until the sentence is imprisonment.

This arrangement particularly benefits Rastriya Swatantra Party Chairperson Ravi Lamichhane, who is currently facing a money laundering case in Kaski District Court. The rules protect him from suspension.

Advocate Bhattarai comments that all citizens should be treated equally under the law, but these rules give special privileges to MPs, violating the principle of equality.

Law lecturer and Advocate Apoorva Khatri observes that MPs aim to portray themselves as persons of special status through these rules.

He adds, “If MPs want to avoid suspension, then relevant laws should be amended instead. The rules draft attempts to weaken existing laws.”

Given RSP’s large majority, these provisions are likely to pass easily, granting significant protection to MPs accused of corruption and money laundering in the future.

Two years ago, the Supreme Court ruled that Tek Bahadur Gurung, a Manang MP found guilty of corruption, would not be suspended, a decision met with widespread criticism.

The Anti-Corruption Commission has filed a review petition to reverse that decision, which remains under consideration in the Supreme Court.

Even before the Commission’s request, the draft rules have institutionalized protections preventing suspension of MPs facing corruption and money laundering charges, easing their engagement with anti-corruption laws and the Commission’s oversight.

Senior Advocate Dr. Bhimarjun Acharya emphasizes that the Constitution, laws, rules, and directives must maintain supremacy collectively.

He notes, “In parliament, representatives exercise the people’s rights. The rules were designed to limit the MPs’ rights as per the people’s will.”

However, he adds that the people should not grant any party carte blanche to act without limits. Such rule provisions are inconsistent with the Constitution and laws.

Dr. Acharya insists, “Democracy requires extensive debate and discussion on such matters. Attempts to restrict these through courts should be avoided.”

April 22, Kathmandu – Following instructions from Prime Minister Balendra Shah and RSWP Chairman Ravi Lamichhane to step down, Home Minister Sudhan Gurung has tendered his resignation. Gurung had been publicly clarifying questions raised against him, but suspicion over his investments in two micro-insurance companies led to a consensus between the Prime Minister and Chairman Lamichhane to remove him.

Initially, Gurung sought to retain his Home Minister position by offering clarifications solely within the party. However, when doubts arose regarding the government and RSWP’s commitment to good governance, his departure became inevitable. When preparations to remove him without resignation were underway, Gurung submitted his resignation at the Prime Minister’s Office Wednesday afternoon.

Gurung denied allegations regarding not disclosing micro-insurance shares in his asset declaration and claims about his relations with controversial businessman Deepak Bhatt.

“Purchasing shares does not equate to partnership. If that is the basis for fault, then everyone investing in those companies would be guilty, which is unjust,” he stated.

Though initially attempting to defend his position, Gurung chose to resign when he realized the party would not protect him. He said, “I will fully abide by the party’s decisions on this matter and stand ready to cooperate with investigations.”

Since Sunday, media outlets have reported on Gurung’s ties with controversial individuals and opaque financial sources, prompting questions about governance directed at both the minister and the RSWP from civil society.

Though the issue was not formally discussed in Monday’s central committee meeting, Chairman Lamichhane said the party engaged in serious debate on the matter.

After the meeting, Lamichhane remarked, “He provided clarifications. The matter is under study and the party will decide accordingly. Whatever happens, it will be lawful—we will not allow wrongdoings.”

Questions also surfaced concerning the dismissal of former Minister Deepak Kumar Sah during the study of Gurung’s case.

Amid growing pressure on the party, the Home Ministry, and the government over these cases, Gurung reportedly met repeatedly with Chairman Lamichhane. According to party leaders, Lamichhane was inclined towards securing Gurung’s resignation from the start.

Sources within the RSWP indicate that Prime Minister Balendra Shah was initially opposed to Gurung’s resignation but ultimately agreed to his removal to safeguard good governance.

“Yesterday, Labour Minister Deepak Sah was removed, and today the same should apply to Gurung; this is another example,” a senior leader said.

Former Labour Minister Sah was swiftly dismissed without being given a chance to explain himself.

Sah fell into controversy after appointing his wife to the Health Insurance Board member post, which led to his removal and a warning to Health Minister Nisha Mehtal.

Though Gurung held the powerful Home Ministry for 26 days, he too eventually had to step down, compared to Sah’s tenure of just 13 days.

While swift action was taken against former Minister Sah, both Prime Minister Shah and Chairman Lamichhane directed Gurung to resign. Sources confirm Lamichhane’s strong insistence on this course.

Chairman Lamichhane had recommended former Labour Minister’s dismissal to the Prime Minister based on a letter from the Disciplinary Commission. However, the party has not publicly disclosed whether the Disciplinary Committee has sought explanations from Gurung following his resignation.

After recurring meetings between Chairman Lamichhane and Gurung at Budhanilkantha, and a meeting between the Prime Minister and Chairman, Gurung decided to submit his resignation.

A party leader shared, “No other leaders were consulted. Sudhan resigned following dialogue between the Chairman and the Prime Minister.”

Ordered by Prime Minister Shah and Chairman Lamichhane to resign Wednesday morning, Gurung was compelled to relinquish his post. In his resignation letter, he wrote, “I am resigning to ensure a fair investigation concerning matters related to me and to avoid any conflict of interest during my tenure.”

In accordance with the party constitution’s “Right to Recall” clause, Chairman Lamichhane approved the reinstatement of former Labour Minister Sah.

This time, even without a formal letter to the Prime Minister, Lamichhane vowed equal treatment for all. After the party meeting, he said, “The right to recall is not for one individual but for all.”

A RSWP secretariat member added, “Citizens voted for us to ensure good governance, and we are committed to that. We expressed that studies were ongoing, but the public was unwilling to wait a single day. We have fulfilled their expectations.”