KATHMANDU: Nepal Telecommunication Authority (NTA) Chairman, Bhupendra Bhandari, has come under scrutiny for holding 1.5 million shares in PayNep Pvt Ltd, a company that is directly linked to his role.

Khabarhub has obtained documents revealing that Bhandari purchased 156,000 shares totaling 156,000 rupees in PayNep Pvt Ltd.

The shares were acquired within the price range of 161,501 to 317,500 rupees.

Interestingly, Bhandari has been the Founder and Chairman of PayNep Pvt Ltd raising serious question over his connection with the company and the potential conflicts of interest.

The company, operating as a mobile payment service provider since 2076 BS, falls within the realm of telecommunications regulation, as obtaining a license from Nepal Rastra Bank and a ‘No Objection Certificate’ (NOC) from the Nepal Telecommunication Authority is essential for mobile banking operations.

Section 9, Clause (e) of the Telecommunications Act, 2053 explicitly states that any direct or indirect ownership or private interest in a firm or organization operating a telecommunication service or system could lead to the removal of the Chairman or member.

Bhandari’s history in the telecommunications sector, including roles at Smart Mobile Burundi and Mero Mobile (now Ncell), raises concerns about potential conflicts of interest.

The Chairman, selected from among 25 applicants, has faced scrutiny for his involvement with PayNep Pvt Ltd.

The recommendation committee, led by the Secretary of the Ministry of Communication and Information Technology, Ram Krishna Subedi, recommended Bhandari as the top choice.

Despite claims of a fair evaluation process, questions arise about the Committee’s awareness of Bhandari’s shareholding in PayNep Pvt Ltd.

Bhandari’s appointment as a telecommunications expert by the cabinet meeting in 2080 BS, with additional benefits provided by the Nepal Telecommunication Authority, further intensifies the need for transparency regarding potential conflicts of interest in his role.

Sources claim that Bhandari was appointed as an advisor based on his qualifications and expertise.

Bhandari resigned from his advisor role, the same day he applied for the Chairman position.

His transition to the role of a telecommunications expert in the Ministry of Communications was approved in a cabinet meeting in 2080 BS.

Minister of Communications Rekha Sharma also decided that Bhandari would receive the salary allowance, vehicle, and driver facilities at the joint secretary level from the Nepal Telecommunication Authority.

In response to Bhandari’s appointment as Chairman, other contestants are considering approaching the Patan High Court with a writ against the decision.

Other applicants who ran for the position of the NTA Chairman are preparing to file a writ, asserting a conflict of interest due to Bhandari’s involvement with the company and demanding his dismissal from the chairman position.

The applicant mentioned that the writ would be filed within a couple of days.

In addition, he advocated for the appointment of a chartered accountant to helm the authority in the telecommunications sector.

Contrarily, the authority’s chairman, Bhandari, firmly asserted that there would be no ‘conflict of interest’ in connection with Pay Nep Pvt. Ltd.’s involvement in telecommunications.