Khatiwada Resigns as Chair of a Parliamentary Committee Amid “Cooling-Off Period” Row

Ramhari Khatiwada, Chairman of the Parliamentary State Affairs and Good Governance Committee, announced his resignation Tuesday, August 12.

The Nepali Congress lawmaker has been at the centre of the “cooling-off period” controversy, which many observers say has made Nepal’s parliamentary proceedings a farce.

His resignation follows a special parliamentary committee investigation into alleged tempering in the Federal Civil Service Bill, specifically regarding the provision intended to bar civil servants from holding constitutional, diplomatic, or government positions for two years after their retirement or resignation from active duty.

The goal was to prevent high-ranking officials from immediately transitioning into political, constitutional, or diplomatic appointments—a practice long criticised for enabling backdoor lobbying and eroding public trust.

But, the clause was allegedly diluted in the bill’s final version, sparking controversy. In a height of negligence, the lawmakers, too, failed to identify the changes while passing the bill at the Lower House. 

Clause 82 (4) of the bill clearly stated that “a civil servant or any government employee who has resigned or retired from service shall not be eligible for appointment to any constitutional or government position until two years have passed from the date of retirement.”

However, a separate clause—Clause 82 (5)(a)—inserted into the bill and allegedly overlooked by many lawmakers during its passage, rendered that provision largely ineffective. The clause exempts constitutional, diplomatic, and other appointments made by the government from the two-year restriction. In effect, the very positions that had raised concerns about post-retirement lobbying were left untouched by the restriction.

The revelation sparked a political storm, with lawmakers accusing one another of negligence, bad faith, or worse.

Khatiwada came under intense scrutiny, with many alleging him that the controversial exemption was inserted under his watch.

Khatiwada has denied wrongdoing and insisted that the clause passed by his committee was 82 (4), which had no such exemptions. But he said he  told the Parliament Tuesday that he wsa stepping down acknowledging his responsibility “as the report uses the term responsible.” 

He had earlier called on House Speaker Devraj Ghimire to launch an investigation and urged the National Assembly to rectify the error before the bill proceeds to presidential assent.

The investigative panel, formed on July 6 and comprising members from multiple parties including Nepali Congress, CPN-UML, CPN (Maoist Center), Rastriya Swatantra Party, and Rastriya Prajatantra Party, submitted its final report to Speaker Devraj Ghimire on August 5. 

While the panel held Khatiwada morally responsible for the errors, it found no direct evidence that Chief Secretary Ek Narayan Aryal or other senior officials who publicly opposed the clause were involved in altering its wording.

The report also noted that civil servants, led by Chief Secretary Aryal, had actively lobbied against the cooling-off period provision.

The incident has also revived public concern over political interference in the bureaucracy. Senior civil servants, including secretaries, had openly lobbied against the “cooling-off” requirement, fearing it would block a well-trodden path into post-retirement influence.