Kathmandu, Sept. 22: The government has constituted a three-member high-level commission of inquiry to investigate into the incidents that unfolded during the Gen-Z demonstrations on September 8 and 9.
A Cabinet meeting held at the Office of the Prime Minister and Council of Ministers on Sunday evening appointed former Special Court Chair and ex-Justice Gauri Bahadur Karki as the head of the commission.
The panel also includes former AIG Bigyan Raj Sharma and legal expert Bishweshwar Prasad Bhandari as members. The commission has been given a three-month period to accomplish its task.
The decision follows last Monday’s Cabinet resolution to form an inquiry team to look into allegations of excessive use of force during the protests, according to Minister for Finance Rameshore Khanal after the Cabinet meeting.
Upon assuming office, Justice Karki pledged to ensure that individuals involved in vandalism, arson, and destruction of public and private property would be brought under the ambit of law.
According to official figures, 74 people lost their lives during the demonstrations.
Meanwhile, the Cabinet has appointed Engineer Manoj Silwal as the new Executive Director of the Nepal Electricity Authority (NEA). Silwal, a former Deputy Executive Director at NEA, will serve a four-year term.
Incumbent Executive Director Hitendra Dev Shakya has been deputed to the Water and Energy Commission as an expert of special class, according to Minister for Home Affairs and Law, Justice and Parliamentary Affairs, Om Prakash Aryal.
Rs. 120 billion expenditure cuts announced
In yet another crucial Cabinet decision, the government has decided to implement sweeping cuts in public expenditure and set up a dedicated fund and committee for the reconstruction of damaged physical infrastructure.
The decision to this end was announced by Minister for Finance Rameshore Khanal.
According to him, the government has resolved to immediately freeze budget allocations for piecemeal projects costing less than Rs. 30 million. Similarly, funds earmarked for projects that have not been registered with the Project Bank, those stated to be entered into the Ministry of Finance’s information system for future budget, and those included under political pressure have also been scrapped.
The government estimates that these austerity measures will save around Rs. 120 billion in recurrent expenditure. Ministries will be allowed to use the frozen funds to pay contractors for works that have already been completed but remain unpaid.
Minister Khanal said the move would ensure respect for contractors, eliminate unnecessary projects, and channel the savings towards expediting large-scale projects of national priority.
In addition, the Cabinet has approved the creation of a Reconstruction Fund to finance the rebuilding of physical infrastructure damaged by natural disasters or other calamities.
Nepalis at home and abroad will be able to contribute voluntarily to the fund. Contributions from banks, financial institutions, and corporate social responsibility (CSR) allocations of industries will also be accepted. The fund will include a tax-deductible provision for CSR contributions.
To oversee the management and operation of the fund, the government will establish a Physical Infrastructure Reconstruction Committee, Minister Khanal added.
AIG Dr. KC to head CIB
In another major reshuffle, the Cabinet has transferred Additional Inspector General (AIG) Dr. Manoj KC as the new chief of the Nepal Police’s Central Investigation Bureau (CIB). KC, previously removed from CIB during the investigation into the fake Bhutanese refugee scam, returns as Bureau head. At that time, he had served
there as a DIG.
Dr. KC also led investigations into the Lalita Niwas land scam and is among the contenders for the post of the 33rd Inspector General of Police, which will fall vacant on November 13, 2025.
Further, the government has appointed Tekendra Karki of Jumla as the Chief Investigation Director of the National Investigation Department. Additional Chief Investigation Director Karki was appointed as the head of intelligence after compulsory retirement of former NID Chief Huta Raj Thapa. The position had been vacant after the previous chief, Thapa, retired on September 13 upon completing his three-year term as intelligence chief.
Govt to auction burnt vehicles
Similarly, the government has decided to auction off vehicles and machinery damaged during the Gen-Z movement as scrap.
Finance Minister Khanal said that it was decided to write off such items from the accounts and sell them as scrap.
For the central level, a committee will be formed under the Ministry of Urban Development, and at the district level, under the coordination of the Chief District Officer. These committees will carry out the auction, he informed.