NEFPORT ISSUE 47 – DECEMBER 2021
Political Overview Nepali politics in the last quarter faced some stalemate with delay in expansion of the cabinet and inactivity of the House of Representatives. Prime Minister Sher Bahadur Deuba, was finally able to expand his council of ministers three months after taking office, but was pulled into controversy after he appointed Gajendra Hamal as the Minister of Industry, Commerce and Supplies. Nepal faced judicial crisis after Supreme Court Justices and lawyers boycotted supreme court hearings to protest against Chief Justice Cholendra Sumsher Jung Bahadur Rana’s involvement in the appointment of Gajendra Hamal as a Minister, demanding his resignation. Likewise, the parliament failed to endorse any bills during the quarter except for the revised federal budget owing to continuous obstructions from the main opposition Communist Party of Nepal- United Marxist Leninist (CPN-UML) Furthermore, differing views of the ruling parties on the Millennium Challenge Corporation (MCC) Nepal Compact has stalled the ratification of the agreement. Cabinet Given Full Shape: Nearly three months after forming his government, Nepal’s Prime Minister Sher Bahadur Deuba finally expanded his cabinet on October 8, 2021, inducting 18 ministers from four ruling parties including two state ministers. On October 8, President Bidya Devi Bhandari administered oath of office and secrecy to the five ministers from Nepali Congress, three ministers and a state minister from CPN-Maoist Centre, four ministers and a state minister from CPN-Unified Socialist and four ministers from Janata Samajbadi Party.1 The expansion of Deuba’s cabinet courted controversy with the induction of Gajendra Hamal as the Minister for Industry, Commerce and Supplies. Hamal, a local leader of the Nepali Congress from Banke district who is not a Member of
the Parliament, is a close relative of Chief Justice Cholendra Shumsher Jung Bahadur Rana. As per media reports, Rana had been seeking a quota in the government, for which the Deuba Government readily agreed without any objections from the ruling parties. Following widespread criticism, Hamal resigned from his post two days after getting appointed.2 As per political analysts and observes, Hamal’s appointment and resignation sheds light on how people in power in Nepal have always trampled the rule of law and ignored constitutional and moral boundaries to fulfil their own interests. Deuba Urged to Ratify MCC Compact at the Earliest: Donald Lu, Assistant Secretary of State for South and Central Asian Affairs
of the United States Department of State, during his two-day visit to Nepal met with Prime Minister Sher Bahadur Deuba on November 18, 2021, urging him to ratify the USD 500 million MCC Nepal compact as soon as possible to maximize the benefits from the MCC projects. Lu stated that the US might be forced to withdraw the grant if there were any further delays in its endorsement from the parliament. The five ruling parties of Nepal are sharply divided over the ratification of the MCC compact. The Deuba Government is under immense pressure to endorse the USD 500 million grant assistance. Lu also met with CPN-Maoist Centre Chairperson Pushpa Kamal Dahal and UML Chairperson KP Sharma Oli and urged both the leaders to reach a conclusion regarding the MCC.3
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