Nepal parliamentary panel finds graft worth billions in China-built Pokhara Airport
A Nepal parliamentary committee has uncovered a large-scale corruption worth around Nepalese Rs 14 billion in the construction of the Pokhara International Airport, built by a Chinese company with a soft loan from China.
A report by the sub-committee under the Public Accounts Committee of the House of Representatives (HoR) led by Member of Parliament Rajendra Lingden found irregularities in the airport's construction.
The report highlighted an embezzlement of approximately Rs 14 billion and called for investigations and action against several senior officials involved in the project.
The Pokhara Regional International Airport was built from a loan of around Rs 22 billion from the Exim Bank of China and was completed by the Chinese company on December 29, 2022.
As per the agreement, Nepal is required to repay the loan at a 2 per cent interest rate for seven years after the completion of the airport construction and then clear the principal in the next 13 years.
The sub-committee termed it unnatural that while the Civil Aviation Authority of Nepal (CAAN) had estimated the cost of constructing the airport at $145 million, the contract was signed with the Chinese company to construct the project at the cost of $215 million, adding $70 million.
Irregularities during the project's construction also included granting tax exemptions of Rs 2.22 billion and paying Rs 320 million for removing 40 metres of Chhine Danda hill, which was never done.
The sub-committee also recommended the suspension of senior officials of CAAN, including Director General Pradeep Adhikari and others involved in the project, from the feasibility study to the completion of the airport's construction.
It recommended the Commission for the Investigation of Abuse of Authority (CIAA) and the Department of Money Laundering Investigation investigate the chief of Pokhara International Airport Project Binesh Munakarmi, chief of administration Rajendra Prasad Paudel, CAAN director and engineer Baburam Paudel among others in the corruption case and take stern action against them, according to a member of the Public Accounts Committee of the HoR.
