Nepal Reinsurance Company Being Driven Toward Collapse Like the Insurance Corporation; CEO Thapa Fails to Hold Annual General Meeting
Kathmandu, Nepal — Recent developments suggest that the government, the board of directors, and company management are collectively steering Nepal Reinsurance Company toward collapse, similar to what happened with the National Insurance Corporation. CEO Surendra Thapa has failed to hold annual general meetings for the past two fiscal years.
Government-owned insurance companies have long suffered from a recurring problem: failure to hold annual general meetings, failure to conduct audits, and widespread corruption by politically appointed officials, ultimately leading to institutional decline. This pattern, which began with the National Insurance Corporation, has already caused serious financial instability and corruption in both National Life Insurance Company and National Insurance Company.
Nepal Reinsurance Company now appears to be following the same path. Nearly two years after his appointment, CEO Surendra Thapa has yet to conduct annual general meetings for two fiscal years. Since his tenure began, serious irregularities have reportedly taken root within the company, with the most recent consequence being the failure to hold the annual general meeting for the fiscal year 2023/24.
Under Nepali law, no government-related transactions or benefits can be processed without tax clearance. However, Nepal Reinsurance Company has neither obtained tax clearance nor completed its audit. Allegations suggest collusion between CEO Thapa and the chief accountant, who is accused of drawing a salary without fulfilling assigned responsibilities, contributing to the company’s deteriorating condition.
The Government of Nepal holds a 44 percent direct stake and a 56 percent indirect stake in Nepal Reinsurance Company, while the general public has invested billions of rupees through share ownership. Thapa, who was appointed during the tenure of then Maoist leader Barshaman Pun after claiming political affiliation, has failed to uphold standards of good governance and due process, yet continues to serve as CEO.
On September 19, during a board meeting, Thapa reportedly resigned and left abruptly. He later filed a complaint at the Kathmandu District Police Office alleging death threats, after which he was reinstated as CEO.
Despite repeated requests from the regulatory body, the Nepal Insurance Authority, to address various issues before approving the audit report, Thapa is accused of using his political connections with Barshaman Pun to exert pressure. As a result, Nepal Reinsurance Company is reportedly weakening day by day.
Attempts to seek clarification regarding the delay in holding the annual general meeting were unsuccessful, as company spokesperson and information officer Damodar Bhandari could not be reached; his mobile phone was switched off.