Michael Foley resigns as Ncell CEO amid regulatory, investment concerns

Michael Patrick Foley has resigned as chief executive officer of Ncell, less than a year after taking charge of Nepal’s largest private-sector telecom operator, amid growing concerns over the regulatory and investment environment in Nepal.

Ncell’s board accepted Foley’s resignation effective August 25. The company notified the Nepal Telecommunications Authority (NTA) of the decision through a letter dated September 1.

The development comes as Ncell faces heightened regulatory uncertainty with only about three years remaining on its current licence. The country’s Telecommunications Act, 2053 states that telecom assets of companies with over 50% foreign ownership shall be transferred to the government when the licence expires. Former operators may reapply for a licence after the government assesses and is paid for the assets.

Foley had also raised concerns over the government’s approach to foreign investment and the potential implications of measures that could affect Ncell’s assets and ownership. Ncell has previously indicated that it was willing to restructure its foreign shareholding and bring in Nepali investors to ensure continuity of operations after the current licence period, although the proposal faces legal complexities. 

Tensions between the government and the operator had also become increasingly visible. Only recently, in mid-August, Ncell had expressed disappointment over the government’s decision to make public an investigation report concerning the company’s financial affairs. The company strongly condemned the publication of the report, which was prepared by an investigation committee led by former Auditor General Tankamani Sharma Dangal and examined Ncell’s share purchase and sale transactions, arguing that making it public violated legal protections concerning privacy and confidentiality.

The company described the publication of a report that it says had been held confidential by the court as a “historically unfortunate event” and a “breach of Trust and confidence.”

The company said it would take necessary action, alleging that the disclosure of confidential information had caused irreparable harm and that the government’s move violated the fundamental rights of the company, its shareholders, directors and beneficiaries, including their right to conduct business.

The company also warned that the government’s action could undermine foreign investor confidence in Nepal’s commitment to privacy and data confidentiality.

Dilli Ram Shrestha to lead on interim basis

Ncell’s Chief Corporate and Regulatory Affairs Officer Dilli Ram Shrestha will assume the full powers and responsibilities of the CEO under the company’s “Limits of Authority” framework until a permanent replacement is appointed.