KATHMANDU, March 13: The government has proposed a two-year cooling period, barring employees from accepting appointments after retirement without prior approval.
The Federal Civil Service Bill 2080 BS states that employees retiring from gazetted special or first-class positions, such as Secretary or Undersecretary, cannot take up new roles for two years without the approval of the Government of Nepal.
The provision prohibits retirees from joining any institution except constitutional, diplomatic, intergovernmental, or international development partner organizations during this period. Additionally, employees will be restricted from working as staff or consultants in organizations related to their previous department or in entities regulated by it for one year after retirement.
Employees who violate the cooling period without government approval will forfeit service benefits outlined in the Civil Service Act. If this provision is enacted, those accepting appointments within two years of retirement will not be eligible for a pension or other government benefits.
The government has introduced this measure to prevent secretaries and undersecretaries from manipulating the system for personal gain by creating favorable conditions for post-retirement appointments while in office.
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Previously, the Public Service Commission argued in the Parliamentary State Affairs and Good Governance Committee that appointing retired civil servants to constitutional bodies without a cooling period was inappropriate. It recommended this restriction to curb the trend of civil servants aligning with political leaders to secure post-retirement positions.
Mira Acharya, Undersecretary at the Ministry of Home Affairs and General Administration, stated that the government aims to establish a system preventing immediate appointments after retirement. Section 82(4) of the bill outlines the two-year cooling period enforcement.
As the bill awaits parliamentary approval, debates continue over its necessity. Some employees argue that restricting experienced professionals from contributing further is unfair, while others believe that government regulations should be followed without personal bias.
The bill also includes a proposal to extend the cooling period to five years, as suggested by CPN-UML leader and Education Minister Bidya Bhattarai. Since no parliamentarian has formally opposed this amendment, there is a strong possibility that the final law will mandate a cooling period of two to five years, effectively preventing retired secretaries and undersecretaries from securing immediate appointments.
Cases of political alignment
Nepal has witnessed multiple instances where civil servants manipulated legal provisions to secure post-retirement benefits.
For example, former Chief Secretary Shankar Das Bairagi resigned two and a half months before his retirement to pave the way for appointment of Dr. Baikuntha Aryal as the new Chief Secretary, who was due to retire in just two days. To ensure his own appointment, Bairagi amended the criteria for the National Security Advisor position. Consequently, he was appointed National Security Advisor to the National Security Council on the same day he resigned as Chief Secretary (August 17, 2023).
Bairagi had previously maneuvered his appointment as Chief Secretary by orchestrating the resignation of then-Chief Secretary Lok Darshan Regmi, who was subsequently appointed Ambassador to the UK. This move allowed Bairagi to serve as Chief Secretary for three additional years.
Need for Reform in Regulatory Bodies
Former administrators argue that corruption is even more prevalent in regulatory institutions, where officials create favorable environments for themselves and later join the private sector they once regulated.
A former civil servant cited Nepal Rastra Bank as a prime example, where officials facilitate private companies and transition into them immediately after retirement. Similar practices exist in other regulatory bodies, including the Nepal Telecommunications Authority, Civil Aviation Authority of Nepal, and Nepal Insurance Authority.
The former employee stressed that reforms should begin with civil servants and extend to regulatory institutions to curb these unethical practices.
