Former Ministers, Top Officials Among 55 Charged in Airport Corruption Case

The Commission for the Investigation of Abuse of Authority (CIAA) has moved to file a corruption case at the Special Court against 55 individuals, including former ministers and senior government officials, over alleged irregularities in the construction of Pokhara Regional International Airport.

Yagya Raj Regmi, Information Officer at the Special Court, told New Business Age that a CIAA team reached the court on Sunday afternoon, December 7, to begin the registration process.

“There are 55 defendants, including former ministers Dr Ram Sharan Mahat, Ram Kumar Shrestha, Bhim Acharya and Dipak Chandra Amatya,” Regmi said.

The airport, inaugurated on January 1, 2023, is Nepal’s third international gateway. The national pride project was funded through a concessional loan from China Exim Bank. China CAMC Engineering Co. Ltd. (CAMCE) undertook the project under an Engineering, Procurement and Construction (EPC) model. The Rs 22 billion contract was awarded to China CAMC Engineering on November 27, 2011, with loan repayment scheduled to begin after seven years and continue for 13 years in 26 instalments.

The project has been mired in controversy. It has struggled to attract regular international flights, fuelling concerns that it could become a “white elephant.”

A parliamentary subcommittee’s report, earlier this year in April, reported irregularities at every stage of construction. The subcommittee, formed under the Public Accounts Committee (PAC) of the now-dissolved House of Representatives, conducted on-site inspections and monitoring before issuing its report. It concluded that payments were released without work being done, additional works were added without justification and expenses exceeded contractual limits.

The report, submitted by subcommittee coordinator Rajendra Lingden to PAC chair Hrishikesh Pokharel, stated that billions of rupees were disbursed in violation of legal provisions. It recommended a full investigation into the project’s legal and technical aspects and called for action against all involved in corruption and procedural breaches.