Deep differences within UML-Maoist Center coalition led to collapse of PM Dahal’s govt

Kathmandu, July 3 (FN Representative) What are the reasons that led to the sudden political shift in Nepal, with the Nepali Congress (NC) and the UML arriving at a power-sharing deal to replace Prime Minister Pushpa Kamal Dahal ‘Prachanda’? Differences between the ruling the CPN (Maoist Center) led by PM Dahal and the CPN-UML led by former PM KP Sharma Oli had become evident with the recent budget presented by Finance Minister Barsha Man Pun and the dispute over the appointment of a new chief of the Securities Board of Nepal (SEBON). The UML’s decision to form an alliance with the NC just four months after allying with the Maoist Center has taken Nepal by surprise. Despite UML Chairman Oli seemingly dictating key government decisions, including the recall of ambassadors and other significant appointments, UML leaders were largely unhappy with Prime Minister Dahal’s working style, writes myrepublica.nagariknetwork.comThey particularly disapproved of the budget introduced by the Maoist Finance Minister Pun, which they labelled a ‘Maoist budget’ due to unilateral tax changes and the inclusion of the term ‘Janayuddha’ (people’s war) in the budget. A large chunk of the budget was sent to the home districts of senior Maoist Center leaders. Additionally, Prime Minister Dahal’s refusal to appoint the UML’s preferred candidate as SEBON chief further angered Chairman Oli, according to UML sources. Prime Minister Dahal’s misadventures, and his loss of trustworthiness and risky actions are to blame for the collapse of the government, they said. Despite forming an electoral alliance with the NC, Dahal broke it abruptly, without any warning, upsetting the NC. The UML leadership was agitated with Prime Minister Dahal’s proposal on Thursday to form a “national consensus” government with NC President Deuba.UML Deputy General Secretary Pradip Gyawali stated at a press conference on Tuesday that Dahal’s initiative to establish an alternative government without informing his UML ally triggered the coalition change.

Sources within the NC indicated that the Dahal-led government’s preparation to secure a substantial loan under the Belt and Road Initiative (BRI) made both the NC and a section of UML top leadership suspicious. The NC clarified on Monday that it opposes taking loans under BRI, advocating for BRI projects to be implemented only through grants. Dahal’s government was preparing to sign a significant loan agreement with China under the BRI framework. “We did not want this to happen. There has to be national consensus on issues of national importance. The working style of the prime minister is largely to be blamed for the new alliance,” said NC lawmaker Ram Hari Khatiwada Further more, Prime Minister Dahal’s public claims of having a ‘magic number’ to stay in power for the entire parliamentary term seemed to undermine the roles of the two major parties—NC and the UML. A senior NC leader, speaking on condition of anonymity, remarked that it was unnatural for a distant third-party leader to take the helm of the government and that Dahal’s behavior did not sit well with the larger parties. The leader also revealed that the NC was waiting for an opportunity to hit back at Dahal for breaking the alliance overnight, without warning four months ago. The NC and Maoist Center had agreed to share government leadership for two and a half years each when they went to the election together. Thus when UML leaders approached NC President Deuba with a proposal to form a new government, ditching their alliance with the Maoist Center, the NC chief thought that it was the right opportunity to avenge being ditched by Dahal.Insiders within the NC and UML said Home Minister Rabi Lamichhane’s actions were also a critical factor in triggering the new alliance.

There was a perception that PM Dahal had given Lamichhane free rein to undermine the UML and NC to strengthen his position, the daily reported.Sources said that Lamichanne was preparing to arrest a few key leaders within the NC and even the UML on various graft cases. The recent arrest of Bechan Jha, one of the prime accused in the fake Bhutanese refugee scam, was likely to lead to the arrest of senior NC leaders including those close to President Deuba. Lamichhane, who is also President of Rastriya Swatantra Party (RSP), said that the NC and the Maoist forged a new alliance overnight after the Home Ministry opened major corruption files.Sources also indicated that PM Dahal intended to fill upcoming vacancies for the coveted posts of the chief justice and central bank’s governor with loyalists, conflicting with the UML’s desire to see their supporters in those positions.Dahal’s refusal to comply with the UML’s request for the SEBON chief’s appointment raised concerns about future appointments, contributing to the coalition’s collapse. The NC and the UML sources suggested that Prime Minister Dahal had also made failed attempts to influence the Nepal Army’s top leadership, causing unnecessary controversy and serving the interests of those close to him. The UML and the NC strongly opposed such practices, as Dahal previously had also tried to dismiss the incumbent army chief to serve his partisan interests, the daily said.