Sunday, August 23, 2026 01:38 AM

Alliance government in crisis due to the MCC dispute

By Our Reporter 

The government of five party alliance led by Sher Bahadur Deuba of the Nepali Congress is on the verge of collapse because of dispute over the Millennium Challenge Corporation (MCC) compact.

Although three communist parties of the ruling coalition—Maoist Centre of Pushpa Kamal Dahal, Unified Socialist of Madhav Kumar Nepal and Rastriya Janamorcha of Chitra Bahadur KC tried their best to prevent the government from tabling the MCC, they were helpless when Prime Minister Sher Bahadur Deuba insisted on tabling it and they finally agreed to table it.

Prime Minister Deuba even held talks with CPN-UML chair KP Sharma Oli on the issue, which created a fear in the Maoist Centre and Unified Socialist. There were also rumours that Deuba and Oli were conspiring to impeach Speaker Agni Sapkota.

Moreover, fall of the coalition government could be costly for Madahv Nepal and Dahal, because they may be cornered by Oli and Deuba. This fear was what had compelled the two communist leaders to let the government table the MCC in the House. Dahal had convinced the Speaker to table it.

But even after the tabling of the MCC, there is no guarantee the present coalition could survive. Although only Jhalanath Khanal is against the MCC in the CPN (Unified Socialist), most of the Maoist leaders are against it. And the government led by Deuba cannot prove its majority unless the Maoist-Centre supports it. As such, Nepal’s support will have no meaning.

Naryankaji Shrestha and Dev Gurung of the Maoist Centre have been asking Dahal to quit the government, but Dahal has not taken any decision till date. If the MCC fails, Deuba may resign and announce early elections, as desired by the UML, this will make the fate of Madhav Nepal and Dahal uncertain.

On Tuesday, NC general secretary Gagan Thapa said in Baratpur that the Maoist-Centre and CPN (Unified Socialist) need to quit the government if they vote against the MCC. In the evening, UML leaders including KP Oli, Ishwar Pokhrel and Bishnu Paudel held a meeting with Prime Minister Deuba. In the meeting, Oli assured Deuba that his party would not seek share in federal government but will in provincial governments. It means, Oli would back Deuba on the condition of ending the alliance. Although Oli told PM Deuba that his party would continue its House obstruction, he might help the government to endorse the MCC, because his government had applied all measures to pass it in the past.

However, as Dahal is quick to change his colour, it would not be a surprise, if his party voted for MCC at the eleventh hour to save the coalition and prevent Oli’s comeback. Again, NC leader Ram Chandra Paudel has been exercising to save the coalition.

It is noteworthy to mention here that it was Ram Chandra who had convinced Deuba to become the PM in July last year. As such, it is uncertain whether the coalition will survive. Interestingly, NC will benefit in both ways. If the MCC is endorsed in the support of ruling parties, the coalition will continue, if it fails, the government will announce fresh polls. And if UML supports to pass it, the lawmakers of Madhav Nepal and the Speaker will lose their posts, Deuba will continue to lead the federal government and many of the provincial government will go to the UML!

 

Conversation

Login to add a comment