The government appears determined to remove Kulman Ghising, the executive director of Nepal Electricity Authority (NEA), despite legal ambiguities surrounding the decision. In its latest move, the Cabinet on Wednesday decided to issue Ghising a three-day ultimatum, asking him to explain why he should not be dismissed from his position.

This marks the fifth time Energy, Water Resources, and Irrigation Minister Deepak Khadka has sought an explanation from Ghising in his persistent effort to remove him. The ministry previously issued similar notices on October 8, October 29, January 6, and February 25. While the government continues to push for Ghising’s removal by repeatedly seeking explanations, officials acknowledge that legal uncertainties remain regarding the grounds for such action.

The controversy stems from the delayed submission of Ghising’s performance evaluation report. The ministry assigned him zero marks in the evaluation, citing the delay. However, former Energy Secretary Sushil Chandra Tiwari argues that the assessment should be based on Ghising’s overall work rather than the submission timeline. He maintains that there is no clear legal basis for penalizing an executive solely for a late report.

As per Ghising’s contract with the Energy Ministry, he was required to submit the performance evaluation for Fiscal Year 2023/24 (2080/81) by mid-September. However, he reportedly submitted the report only on January 9. The government, which had initially asked for the details by mid-September, could have dismissed him when it issued the first clarification letter on October 8.

Legal experts, however, suggest that the ministry lacks a solid legal foundation for disciplinary action based on the delayed response. Senior advocate Prof. Dr. Gandhi Pandit told New Business Age that while the ministry has repeatedly sought clarifications, the legal basis for dismissal remains unclear. He noted that although disciplinary action can be taken against Ghising as NEA falls under the ministry, there is no legal ground for his outright dismissal. He added that the government appears intent on removing him regardless.

Ghising had previously received close to 100 percent marks for two consecutive fiscal years in his performance evaluation. Critics argue that the government is deliberately assigning him zero marks as a means of retaliation, systematically manipulating the evaluation process to justify his removal.

Minister Accuses Ghising of Financial Misconduct

Energy Minister Khadka escalated the allegations against Ghising, accusing him of financial misconduct during a House of Representatives session on Thursday. Responding to lawmakers’ queries, Khadka claimed that Ghising had falsely reported uncollected revenues as profit, labeling it a financial crime.

According to Khadka, Ghising recorded outstanding payments from dedicated feeder and trunk line customers as profit, even though those amounts were still due. "Can revenue be reported as income before it is collected? Isn't that a crime?" Khadka questioned.

Despite these allegations, NEA has reported a profit of around Rs 12 billion in the first six months of the current fiscal year. Under Ghising’s leadership, NEA’s accumulated losses of Rs 34 billion were reversed, with total profits reaching Rs 45 billion by the last fiscal year.

Ghising Responds to Allegations

Ghising was unavailable for comment when approached by New Business Age, but he addressed the issue in an interview with the BBC Nepali Service on Thursday. He dismissed the argument that his performance evaluation should be tied to the timely submission of reports.

"This year, I had to travel extensively to resolve issues caused by floods and landslides. As a result, the report submission was delayed. But can you give someone zero marks just for being late?" he questioned, likening the situation to failing a student who took an exam but submitted their answer sheet late.

Ghising, who has only four months remaining in his tenure, asserted that he seeks an honorable exit and will not step down despite government pressure. He emphasized his commitment to completing his term to ensure stability in the energy sector.