Finance Ministry’s Silence Raises Alarms Over Governance Crisis at Rastriya Beema Company

Kathmandu — Serious questions have emerged over the state of governance at the government-owned Rastriya Beema Company, as the Insurance Authority appears unable to take regulatory action due to direct interference and inaction from the Ministry of Finance, led by Minister Bishnu Prasad Poudel. Amid mounting allegations of corruption, regulatory negligence, and internal mismanagement, stakeholders now fear that the company’s condition may deteriorate further if decisive reforms are not introduced urgently.

An on-site supervision report conducted by the Insurance Authority earlier this fiscal year had flagged multiple irregularities, including the absence of regular audits, failure to convene annual general meetings, and unchecked appointments of staff without procedural transparency. However, despite the severity of these findings, the regulatory body is reportedly paralyzed — caught between the responsibilities of oversight and the pressures of political protection.

Officials at the Insurance Authority have privately acknowledged that their hands are tied. What began as operational irregularities has now spiraled into a full-blown governance crisis. The audit report of the company exposes alleged corruption involving more than Rs 60 million, reportedly facilitated with the involvement of senior officials within the insurer. Yet, despite clear evidence, no punitive action has followed. The lack of reinsurance mechanisms for policies issued by the company has further deepened the risk exposure for policyholders — a blatant violation of basic insurance protocols.

This alarming inaction has drawn criticism from a wide range of stakeholders, including government auditors, regulators, and financial analysts. The Office of the Auditor General has reportedly sent multiple letters to the Finance Ministry in recent years, calling for reforms and action against the deteriorating state of the company. But these letters, addressed annually to the Secretary of the concerned Ministry, have reportedly gone unanswered.

What’s most concerning, insiders say, is the perception that any effort to hold the insurer accountable is seen as political dissent. The prevailing sentiment among ministry staff is that the company is “untouchable” due to its proximity to the minister’s circle.

Industry experts warn that if the Finance Ministry continues to shield mismanagement under political patronage, it will not only damage the credibility of government-owned insurance institutions but also erode public trust in the broader financial system.