Disputes about investment in medical colleges have started to rise along with mistrust among the promoters. Disputes have increased due to the tendency of seeking instant profit like other businesses despite claims that they are operated with service motive. Chitwan Medical College in Bharatpur has become the latest example of this trend with the dispute among the shareholders reaching the Office of Company Registrar. New shareholders have entered the boardrooms displacing the founders of People’s Dental College and KIST Medical College of Kathmandu, and Gandaki Medical College of Pokhara due to disputes among the promoters.

Eleven out of the 34 shareholders of Chitwan Medical College established seven years ago have lodged complaint against Managing Director (MD) Dr Harish Chandra Neupane at the Office of Company Registrar. The college with investment from 25 doctors was among the top colleges in recent times taking 100 students for MBBS every year and had even received permission to conduct dentistry course. Around 700 students are currently studying in the college. Though the promoters had vowed to make it a model college, they have now been divided into two groups and are indulging in mudslinging against each other. MD Neupane claimed that those against the welfare of college have created unnecessary disputes. “Friends among us are trying to defame the college. But we will not make any compromise in our services,” he stated.

The first dental college of Nepal, People’s, is preparing to start medical college after obtaining Letter of Intent (LOI). Managing Director Bidya Bhushan Bajracharya, who was operating the college with collective investment, has got rid of old shareholders and welcomed promoter of Nobel Medical College Sunil Sharma after being unable to repay bank loans. Former president of the college Anil Shrestha claimed that the institution is mired in debts due to lack of financial transparency and sensitivity toward investment on the part of Bajracharya. He revealed that he resigned from the post of president and even took back his shares due to dispute in the college administration about income and expenditure. He said the college has to pay around Rs 250 million to Nepal Bank alone. Sharma has entered as new promoter accepting the loans.

Though the government has stopped giving permission to new medical colleges in Kathmandu Valley stating that there are already enough here, the then education minister Dina Nath Sharma had issued LOI, the first stage of granting permission, to the college. A staffer said there is dispute at the college as it is preparing to offer voluntary retirement to existing staffers after new promoter entered management. Promoter duo Bajracharya and Sharma refused to come into contact despite our repeated attempts. The group of Navaraj Pandey had also withdrawn their shares from Nobel a few years ago following dispute among the promoters. Pandey is also founding promoter of Nobel Academy in Kathmandu.

Dispute among promoters of Gandaki Medical College had also reached climax a few months ago. Staffer at the hospital administration Dhruba Sharma claimed that the dispute has since been resolved. “It is normal for some disputes to emerge at the time of repaying loans in an institution in debts,” he stated and revealed that the promoter group of Universal Medical College, Bhairahawa has now entered the medical college.

President of the Nepal Medical College Association and promoter of Nepalgunj Medical College Dr Suresh Kanodiya said the dispute about investment shows lack of transparency and mutual trust. “A medical college cannot be established with less than Rs 1 billion.  The promoters invest 50 percent of that and the rest is bank loans. Lack of trust among investors is the main reason for such disputes,” he said. A professor at KIST Medical College in Kathmandu revealed that construction of physical infrastructure and upgradation have been delayed due to mistrust among promoters but he claimed that the earlier disputes have now been resolved.

Promoters of Lumbini Medical College in Palpa also had dispute some time back about procuring buildings for girls’ hostel. The dispute has now been resolved after the college procured three buildings at Rs 70 million. The college has investment of 108 persons. Janaki Medical College of Janakpur also faced dispute among promoters which has now been resolved, according to the promoters.

The number of colleges teaching dentistry and MBBS in Nepal has now reached 19. At least Rs 1 billion is needed for construction of the requisite infrastructure to run a medical college apart from land.

source:karobardaiy.22 July 2013