Kathmandu, 21 May: The Public Accounts Committee under the House of Representatives has directed the Commission for the Investigation of Abuse of Authority (CIAA) to investigate and take action regarding corruption during the construction of the Pokhara Regional International Airport. In its meeting on Wednesday, the committee decided to formally write to the CIAA requesting an investigation into the alleged irregularities and corruption in the airport’s construction. Committee Chairperson Rishikesh Pokharel stated that this decision was made based on a report submitted by a sub-committee, which was coordinated by Rajendra Lingden.
The sub-committee concluded that at least NPR 10 billion in corruption had occurred during the construction process and submitted a detailed report to the main committee. It found that corruption had taken place from the very beginning of the contract process. The sub-committee recommended suspending and initiating action against eight technical staff and employees, including then-project chief and current Director General of the Civil Aviation Authority, Pradeep Adhikari. Based on this report, the Public Accounts Committee has sent a formal directive to the CIAA for further investigation and action.
However, the report does not identify or assign responsibility to high-level officials who made key policy decisions during the construction, procurement, and cost escalation processes. The sub-committee reported that corruption occurred in several areas, including a cost increase of NPR 6.56 billion through negotiations in violation of the Public Procurement Act, tax exemptions worth NPR 2.22 billion, and an additional NPR 320 million paid for cutting through Chinedanda hill.
The sub-committee concluded that even before construction began, the contract process was completed through negotiations that significantly inflated the estimated cost. Although the Civil Aviation Authority had initially estimated the cost at USD 145 million (equivalent to NPR 13.59 billion at the 2014 exchange rate), the project cost was increased by USD 70 million (NPR 6.56 billion), and a contract was signed with the Chinese company CAMC Engineering, leading to irregularities.
The report also noted that the loan for the project was taken without conducting a feasibility study or preparing a strategic operational plan for the airport. Additionally, the airport construction and hill cutting at Chinedanda were carried out without any environmental impact assessment. The report stated that the construction process was driven more by the preferences of the construction company than by actual necessity.
Based on these findings, the Public Accounts Committee has formally decided to send the report to the CIAA for further investigation and legal action.
