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Power struggle gives a jolt to NAC

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KATHMANDU, July 30: The Supreme Court on Wednesday issued a stay order against the government´s decision to appoint Sugat Ratna Kansakar as the head of Nepal Airlines Corporation (NAC). The decision means KB Limbu, managing director of NAC, will once again hold the executive powers to run the state-owned airline company. [break]



These frequent changes in the company´s chief executive position has, however, put NAC´s plan to purchase new aircraft on the backburner, and pushed aside the decision to implement much-needed reforms in the company that has a negative net worth of Rs 1.38 billion.



This power struggle between Kansakar and Limbu had begun soon after the Maoist-led coalition government appointed Kansakar as the managing director around eight months ago. At that time Limbu was heading the national flag carrier.



Limbu then took the issue to the Supreme Court, demanding that he be reinstated to the post. The apex court, in the first week of June, gave a verdict in favor of Limbu, paving way for his entry into the NAC.



But again on July 23, the cabinet took a decision to appoint Kansakar as the executive chairman of the company.



As per NAC´s Company Act, the government can appoint an executive chairman and transfer all the responsibilities of the managing director to that person. This decision rendered Limbu without any power to take decisions on behalf of the company.



Once again, Limbu knocked on the doors of the Supreme Court, which on Wednesday, directed the government to allow Limbu to exercise all the powers he was given when he was appointed as the company´s managing director. The court has also called the conflicting parties to convene in the next 15 days.



The court´s decision may have put a smile on Limbu´s face and annoyed Kansakar at the same time, but this level of political intervention is not going to do any good to the company.



For instance, most of high ranking officials are being moved from one department to the other soon after the change in heads of the company.



When Limbu was reappointed as the chief of the company in June, he shuffled the team. And now soon after Kansakar assumed office, he also replaced all the departmental heads -- except for the heads of engineering and ground service department -- with his people. When people inside the office are moved from one department to the other so frequently how the employees will function is a big question.



Then there is the responsibility of adding two new aircraft to the fleet of NAC. "When there is power struggle of this extent, this process is expected to be stalled," a source at the NAC told myrepublica.com.



This will only cause more harm to a company which is trudging with two 20-year-old Boeing aircraft.



rupak@myrepublica.com



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