KATHMANDU: Kathmandu Metropolitan City (KMC) Mayor Balen Shah has formally refused to allow Chief Administrative Officer Saroj Guragain to resume work, escalating tensions between the metropolis and the federal government.
In response to a directive from the Ministry of Federal Affairs and General Administration, which instructed KMC to create a working environment for Guragain, Shah sent a letter on Thursday, asserting that allowing Guragain to return would negatively impact ongoing projects and lead to legal complications.
The letter, signed by Senior Branch Officer Shanta Pahadi, argues that Guragain was responsible for procedural irregularities in approving the Kathmandu Tower project—a 19-story commercial building planned at the Old Bus Park under a public-private partnership model.
“If the Chief Administrative Officer, who has already made erroneous decisions violating legal provisions and building codes, is reinstated, it will not only affect the project but also create further legal and operational difficulties,” the letter states.
The metropolis claims that decision-making power over such projects falls under the jurisdiction of the Partnership Board and the Municipal Executive, as per the Local Government Operation Act, 201 and the Partnership and Investment Act, 2022.
Balen has accused Guragain of corruption in granting construction permits for the Old Bus Park project without due process. Following these allegations, the mayor’s office locked Guragain out of his office, preventing him from resuming his duties.
Meanwhile, the federal ministry insists that Guragain remains the legally appointed Chief Administrative Officer and has sought his reinstatement.
In response, Balen has urged the government to either amend the Local Government Operation Act or appoint a new Chief Administrative Officer.
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