The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case against 21 individuals, including a former secretary, former director generals and a Chinese contractor company, over alleged irregularities in the Pokhara Regional International Airport project.
According to the CIAA, those charged include former secretary of the Ministry of Culture, Tourism and Civil Aviation Kedar Bahadur Adhikari, former director generals of the Civil Aviation Authority of Nepal Sanjiv Gautam, Rajan Pokharel and Pradeep Adhikari, along with officials of contractor China CAMC Engineering Co Ltd and consultant ERMC/A-not/Slate JV.
The airport project was being constructed under an Engineering, Procurement and Construction (EPC) model with loan support from China Exim Bank. A provision of 2.8 million US dollars had already been allocated within the contract for supervision consultancy services.
Despite this, the CIAA stated that a separate procurement process was initiated for consultancy services, with an additional cost estimate of Rs 50.34 crore approved in violation of existing contract provisions and public procurement rules.
Subsequently, a contract worth Rs 42.89 crore was signed with the consultant and payments amounting to Rs 40.68 crore were made, resulting in financial loss to the Civil Aviation Authority of Nepal.
The anti-corruption body has alleged that the decision to appoint a consultant separately, despite an existing provision within the EPC contract, was taken with the intention of benefiting the involved parties and causing loss to public property.
Investigations have also revealed that an updated price schedule was prepared in coordination between the contractor, consultant and officials, altering the original contract terms. The provisional sum allocated for consultancy was reduced to 10,000 US dollars, while the remaining amount was redirected elsewhere.
According to the CIAA, these actions led to misuse, loss and embezzlement of public funds, and the case has been filed at the Special Court seeking legal action against all accused.