Kathmandu: In a major blow to Nepal’s anti-corruption agency, the Special Court has ruled that its current Chief Commissioner, Prem Kumar Rai, misused his authority during the controversial procurement of two Airbus A330-200 wide-body aircraft for Nepal Airlines Corporation (NAC).
The Commission for the Investigation of Abuse of Authority (CIAA) had filed a corruption case on 4 April 2024, claiming a misappropriation of Rs 1.47 billion in the aircraft deal.
However, the Special Court, in its full verdict issued on 5 December 2024, questioned Rai’s integrity in overseeing the very investigation in which he was directly involved as a government secretary during the purchase.
Rai, who served as the Secretary of the Ministry of Culture, Tourism and Civil Aviation at the time, chaired the NAC board meeting held on 14 April 2016, which established the subcommittee for the aircraft procurement. The court noted that Rai played a key role in initiating and executing the purchase process.
The Special Court criticized Rai for leading the CIAA investigation while excluding himself from prosecution, calling it a “selective approach” that undermined the principle of equal justice. The ruling emphasized that choosing to prosecute some involved individuals while shielding others in the same process violates legal fairness and public trust.
The verdict stated, “The decision to form the wide-body aircraft procurement subcommittee under NAC’s regulations was led by Prem Kumar Rai himself. However, while others involved in the same decision-making process were prosecuted, Rai was not held accountable.”
The court further noted that the CIAA did not dispute Rai’s involvement in the original procurement decision in its charge sheet, raising concerns about impartiality and accountability within the anti-corruption body itself.
Similarly, the court questioned why NAC’s current Executive Chairman Yuvraj Adhikari was also spared from prosecution despite being part of the procurement committee that negotiated a Memorandum of Understanding (MoU) with AAR Corp. in 2016. Adhikari, along with several other NAC officials, was part of the 11-member negotiation team led by then Deputy General Manager Ganesh Bahadur Chand.
The court ruled that excluding Adhikari from prosecution while charging other committee members demonstrated bias and bad intent. The verdict clearly states that the CIAA’s decision showed “partial, discriminatory, and arbitrary behaviour that goes against constitutional rights to equality.”
While the court dropped charges against some members of the committee who were only involved in preparing and evaluating the Request for Proposal (RFP), it found others guilty.
Former NAC board chair Shankar Prasad Adhikari, former Finance Secretary Shishir Kumar Dhungana, Joint Secretary Buddhisagar Lamichhane, and former NAC General Manager Sugat Ratna Kansakar were found guilty of corruption. The court ordered a fine and restitution of Rs 12.25 million each.
Kansakar, being a senior citizen, received a reduced sentence of 1 year, 4 months, and 15 days in jail under the Senior Citizens Act, while others received sentences of 1 year, 5 months, with an additional 3 months due to their public office positions.
Although the CIAA had initially charged 32 individuals, the Special Court cleared most of them—except the four mentioned above and representatives of the foreign company involved. The court confirmed that while Rs 1.47 billion was indeed misappropriated, the responsibility largely lay with those four Nepali officials and foreign entities.
The ruling delivers a strong message regarding misuse of authority, particularly by the very institutions mandated to uphold justice. The verdict also opens the possibility for future legal proceedings against CIAA Chief Prem Kumar Rai for shielding himself from accountability.
The Special Court has given 35 days to appeal the decision to the Supreme Court.
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