NAC Airbus deal: House sub-committee recommends action against sitting minister, two former ministers, 3 secretaries and NAC general manager

  • Sub-committee under Parliament Accounts Committee concludes Rs 4.3 billion was embezzled while procuring two wide-body aircrafts NAC

Jan 2, 2019-

The sub-committee under the Parliament Accounts Committee (PAC) has concluded that Rs 4.3 billion was embezzled while procuring two wide-body aircrafts for the Nepal Airlines Corporation (NAC).

The subcommittee, in its report which was submitted at the PAC on Wednesday, has recommended action against one sitting minister, two former ministers and three secretaries for being involved in the irregularity.

The report recommends action against sitting Minister for Culture, Tourism and Civil Aviation Rabindra Adhikari, former ministers Jitendra Narayan Dev and Jiwan Bahadur Shahi. Likewise, the report has also recommended action against secretaries Prem Rai, Shankar Adhikari, Krishna Prasad Devkota and NAC General Manager Sugat Ratna Kansakar.

Former minister Dev has been accused of recommending payment for the procurement of the aircraft while erstwhile minister Shahi has been accused of not being vigilant enough during the procurement process.

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Over Rs4 billion was embezzled while procuring two wide-body aircraft for the Nepal Airlines Corporation as the NAC loses over Rs15 million daily after the planes have been grounded since they landed in Kathmandu, the parliamentary subcommittee has claimed.

The report has been prepared after studying the procurement papers and holding discussions with the stakeholders involved in the procurement process, said subcommittee coordinator Rajan KC.

“The regulations of the Public Procurement Act were disregarded while buying the aircraft,” said KC, a lawmaker from Nepali Congress, “The nation has faced a severe loss as the stakeholders bought the aircraft making arbitrary decisions.”

The subcommittee, in its report, has listed several other conflicts of interest ranging from the ways the letter of intent was issued to the payment modality.

Even as Airbus, the manufacturer, could receive full payment, a pseudo company and agent were created allegedly to embezzle the money as commission.

Read the full text of the report:

Published: 02-01-2019 12:41

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