Kathmandu: The Commission for the Investigation of Abuse of Authority (CIAA) on Sunday filed charges in the Special Court against 55 individuals, including former ministers, accusing them of pocketing Rs 8.36 billion (approximately US$ 62 million) through deliberate cost inflation in the construction of Pokhara Regional International Airport.
According to the charge sheet, the accused public officials, non-public officials, and the Chinese contractor China CAMC Engineering Co. Ltd colluded with “malafide intent” to illegally benefit themselves while causing equivalent loss to the government and the Civil Aviation Authority of Nepal.
The CIAA alleges that the approved cost estimate was unlawfully jumped from US$ 169.697 million (including 3 percent contingency and 13 percent VAT) to an exorbitant US$ 244,040,450. Despite China CAMC’s bid failing technical evaluation and being substantially overpriced, the defendants held illegal negotiations, formed an unauthorised advisory team, and twice revised the cost estimate upwards, and ultimately awarded the contract at the inflated price. All excess payments were then released.
The exact amount claimed as damages is US$ 74,343,450, which, converted at the Nepal Rastra Bank selling rate of Rs 112.55 per dollar on the first payment date (10 August 2018), equals Rs 8,36,73,55,297.50.
The 55 defendants include former ministers and dozens of former secretaries, directors, consultants, academics including Post Bahadur Bogati (deceased), Bhim Prasad Acharya, Ram Kumar Shrestha, Dr Ram Sharan Mahat, Deepak Chandra Amatya, and China CAMC’s chairman Wang Bo and regional general manager Li Shengcheng.
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