‘Cold-war’ between two business organizations ends with separation

KATHMANDU, Aug 8: Nepal Chamber of Commerce (NCC) has decided to withdraw its membership from the Federation of Nepalese Chambers of Commerce and Industries (FNCCI). The ‘cold-war’ between the two private sector organizations in recent months has culminated into the separation. 

“We have decided to withdraw membership from the FNCCI as we are building our own organizational structure in line with the new federal system,” Rajesh Kazi Shrestha, president of the NCC, told Republica.

He, however, denied any ‘misgiving’ with the FNCCI. “We are the founder of the FNCCI and we can forge partnership in future on issues of the private sector and promotion of business interest,” he added.

Shekhar Golchha, senior vice president at the FNCCI, told Republica that the NCC decided to discontinue its membership with the FNCCI as the chamber had also formed a structure of federation like the FNCCI. 

“The NCC was a member of the FNCCI. But there were concerns as to why it was setting up structure similar to the FNCCI when it was a member itself. Then, it decided to leave,” said Golchha. “Though the decision to leave the FNCCI has caused some uneasiness among us, we don’t think it should be a matter of ego. After all, we all are working for the advocacy and benefit of the private sector,” he added. 

Established in 1952, the NCC says that it has more than 1,600 ordinary members and more than 8,000 registered firms. 

Some leaders of the FNCCI have termed the decision of the NCC to withdraw its membership as ‘unfortunate’. 

“The private sector is one of the major pillars of the country’s economy and prosperity. At this moment, there should be unity among the private sector organizations,” said Chandra Dhakal, vice president of FNCCI. “The decision of the chamber as I heard from the media could send a message that the private sector is divided or getting weaker. That should not have happened.” 

FNCCI is the umbrella organization of 105 district- and municipality-level chambers in 75 districts of Nepal, 100 commodity and sectoral associations, 880 leading public and private sector undertakings, and 20 bi-national chambers. 

While the NCC has formally decided to leave the FNCCI, the two organizations were at odds with each other in recent months. According to a source at the FNCCI, the differences between the FNCCI and the NCC were mainly due to ‘ego tussle’ of leaders of the two organizations. 

“While the FNCCI has strong network as well as some international clout as Nepal’s umbrella organization, the leaders of the chamber want the same status as a separate entity. This is something that the leaders of the FNCCI are uncomfortable with,” said the source. “This cold war has now resulted into formal withdrawal of the NCC.”