Corruption began at the outset of the tender process: PAC subcommittee

KATHMANDU: A subcommittee formed by the Public Accounts Committee (PAC) of the House of Representatives has unearthed massive irregularities during the construction of Pokhara Regional International Airport in Kaski.

Rajendra Lingden, the coordinator of the subcommittee, submitted its study report to PAC Chairperson Rishikesh Pokharel on Monday.

In its report, the subcommittee stated that corruption began at the outset of the tender process. “Significant irregularities occurred during construction from both financial and technical perspectives,” the report stated. “A three-member task force was formed, in violation of the Public Procurement Act and established norms, with the intent to legitimize corruption, leading to a policy decision to increase cost estimates.”

The report states that, contrary to the original contract provisions, a new implementation agreement was made with the intent of facilitating financial irregularities through tax exemptions. This resulted in financial irregularities amounting to Rs 2.22 billion, in the involvement of the Civil Aviation Authority of Nepal (CAAN), the Ministry of Culture, Tourism and Civil Aviation and the Ministry of Finance, based on the master list.

The subcommittee has recommended a comprehensive legal and technical review of all aspects of the airport’s construction. It has also urged action against those involved in corruption and irregularities.

Likewise, the subcommittee has advised the government to ensure the airport is fully operational before commencing commercial operations. Despite being a project of national pride, Pokhara Regional International Airport, though completed, has not yet been fully or commercially operational.

The subcommittee was formed to investigate public complaints regarding irregularities and corruption in the construction process. It conducted on-site inspections, held discussions with stakeholders and reviewed documents from relevant authorities to prepare its report.

The subcommittee has also recommended that the government deposit tax exemptions flagged in the 60th annual report of the Auditor General into the federal treasury and take immediate legal action against all those involved in irregularities and corruption, including tax exemptions.

The subcommittee has suggested suspending those currently in office, initiating investigations through the Commission for the Investigation of Abuse of Authority, the Department of Money Laundering Investigation, and other relevant processes, and directing the government and concerned agencies to proceed accordingly.