Kathmandu, 5 Dec: Although a corruption case worth NPR 135.7 million has been filed against Civil Aviation Authority of Nepal (CAAN) Director General Pradip Adhikari in connection with the Nalinchowk heliport construction in Bhaktapur, the Commission for the Investigation of Abuse of Authority (CIAA) has yet to conclude the investigation of the Pokhara Regional International Airport scandal, in which Adhikari is also implicated.
The CIAA has been investigating the Pokhara airport case for two years and has already recorded statements from accused individuals involved in the construction process. However, it has continued to delay finalizing the investigation and taking the case to court.
According to CIAA sources, irregularities and misappropriation appear to have occurred throughout the airport’s construction — from project inception to completion. A parliamentary subcommittee led by then-MP Rajendra Prasad Lingden had also concluded that around NPR 10 billion was misappropriated and recommended further investigation and prosecution. Despite the subcommittee’s directive seven months ago, the CIAA has not concluded the probe.
In the heliport case, the CIAA filed charges in the Special Court against DG Adhikari, former director Murari Bhandari, CAAN manager Nal Bikram Thapa, deputy manager Samriddhi Shrestha, consultant Gurudatta Adhikari, and contractor Vijay Thapa, fixing a loss of NPR 135,746,213. Adhikari and Bhandari were arrested before the case was filed and remain in CIAA custody.
Pokhara Airport: Multi-Billion Rupee Irregularities Involving Former Ministers and Senior Officials
The Pokhara airport scandal reportedly involves a NPR 10 billion corruption estimate, and over six months have passed since the parliamentary committee submitted its report to the CIAA. Senior figures from political parties — Congress, UML, and the former Maoist party — as well as former and current CAAN leadership are implicated.
The CIAA has already recorded statements from former ministers involved in the decision-making process, as well as high-ranking officials from the Ministry of Tourism and CAAN. Those giving statements include project director Chandmala Shrestha, engineer Pravin Nyaupane, administration head Rajendra Prasad Paudel, CAAN director Baburam Paudel, and former CAAN DGs Sanjeev Gautam, Rajan Pokhrel, among others.
The current DG Pradip Adhikari, who now faces separate charges in the heliport case, served as the project chief of Pokhara Airport from 2014 to 2017. The parliamentary subcommittee had recommended suspending eight individuals, including Adhikari and former project chief Binesh Munakarmi, and instructed the CIAA and the Department of Money Laundering Investigation to conduct further inquiry and take the strongest legal action.
Former secretary Jayamukunda Khanal stressed that the CIAA must conclude the long-pending investigation without delay and ensure that those guilty of corruption do not go unpunished.
Inflated Costs, EPC Contract Manipulation, Tax Exemptions & Environmental Violations
The concept of developing Pokhara as a regional international airport was created in 2008. In 2010, Joshi Associates submitted the engineering survey, layout, design, and soil estimate. CAAN initially planned the project at USD 174.9 million, including USD 145 million for construction and USD 30 million for land acquisition.
However, without concluding the tender phase, the project was eventually executed at NPR 22 billion, raising strong suspicion of collusion and cost inflation. The parliamentary probe found that the costs were deliberately increased, causing major losses to the state.
After China expressed readiness to build the airport under the EPC (Engineering, Procurement, Construction) model through a concessional loan, the Ministry of Finance approved the proposal in 2011. Only Chinese contractors were allowed to participate, effectively blocking competition. In 2014, CAAN signed a construction agreement with Chinese company CAMC Engineering for USD 216 million, far exceeding the previously approved estimate.
Key political leaders involved in approving or forwarding the project at various stages include:
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Baburam Bhattarai (then PM)
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Barsaman Pun (Finance Minister)
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Khadga Bahadur Bishwakarma (Tourism Minister)
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Sushil Koirala (PM at time of cost approval)
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Ram Sharan Mahat (Finance Minister)
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Bhim Prasad Acharya (Tourism Minister)
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KP Sharma Oli, Bishnu Paudel, and Anand Prasad Pokharel (during loan signing period)
Multiple irregularities identified:
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Cost increases in violation of the Public Procurement Act.
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Tax exemption irregularities worth NPR 2.22 billion.
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Payment of USD 4.4 million for infrastructure such as runway, taxiway, apron, embankment, and drainage — even though works were incomplete.
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NPR 320 million paid to an unrelated company for Chinedanda hill cutting.
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Air-conditioning procurement worth USD 742,000 paid by CAAN despite contractor responsibility.
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Environmental Impact Assessment not conducted before major works.
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Soil testing rushed and completed without adequate study.
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Additional items worth over USD 20 million added beyond the contract.
Although the airport was inaugurated on 1 January 2023, commercial operations remain uncertain. Meanwhile, numerous irregularities continue to surface, and concerns grow that powerful groups are trying to influence or slow down the investigation.
The parliamentary subcommittee’s 38-page report concludes that the airport’s cost was increased from USD 145 million to USD 216 million through manipulation, making cost inflation the central source of corruption.
