Tuesday, January 8, 2019

Accusation and denial in wide-body jet purchase

I'm not guilty: Adhikari
Kathmandu, Jan. 7
Minister for Culture, Tourism and Civil Aviation Rabindra Adhikari has denied all accusations of financial misappropriation labelled on him by the sub-committee formed by the Public Accounts Committee (PAC) of the Parliament in the purchase of the two wide-body aircraft for the Nepal Airlines Corporation (NAC) last year.
"I am not involved in the procurement process of the wide-body Airbus 330-200. I had only tried to ensure that the aircraft were delivered to the NAC on time, and operate commercial flights using those planes," he said at a press conference organised to give his say on the wide-body purchase scam.
He appealed to the anti-graft bodies to conduct a transparent investigation into the matter and bring out the truth and punish the guilty.
Minister Adhikari also assured his full cooperation in the investigation process carried out by the examination commission formed by the government and other responsible bodies.
Replying to the accusations made by the House panel, he said, "I take the parliamentary committees in high regard. But at the same time, development should not be affected in the name of investigation."
He made his saypublic five days after the PAC subcommittee concluded that about Rs. 4.355 billion was misappropriated while obtaining the jets, and recommended taking stern actions against the incumbent Tourism Minister.
The subcommittee report had suggested holding  two former tourism ministers  Jitendra Dev and Jiban Bahadur Shahi morally responsible while demanded maximum punishment to Managing Director of NAC Sugat Ratna Kansakar, chairmen of Board of Directors Prem Kumar Rai, Shankar Adhikari and Krishna Prasad Devkota and all officials who were involved in the procurement process.
"NAC is an autonomous organisation and is run by the Board of Directors and executive head. Therefore, the minister has no role in the organisational process of the company other than the policy leadership," Minister Adhikari said.
"When I held the rein of the ministry, the Sales-Purchase Agreement (SPA) between the NAC and AAR Consortium was already concluded and the payment schedule was also approved. So, I had no legal grounds to change the schedule or stall the payment," he added.
He said that although the Auditor General's last year's report had questioned the intention behind the procurement process, he had no excuse to stop the payment since the Supreme Court had directed to complete the payment process.
According to Adhikari, if he had not sent the last payment of the aircraft price, Rs. 9 billion which was already paid, could be at risk, and there could have been a situation whereby the country would have neither the plane nor the money.

Punish ministers and officials: PAC
Kathmandu, Jan. 7
The Public Accounts Committee (PAC) of the Parliament on Monday directed the government and Commission for the Investigation of Abuse of Authority (CIAA) to hold the former and sitting tourism ministers—Jiban Bahadur Shahi, Jitendra Dev and Rabindra Adhikari–morally responsible in the procurement of the wide-body jets and punish them as per the law.
Although the subcommittee formed to look into the issue had recommended holding the former two ministers morally responsible and taking actions against the incumbent Minister Adhikari, the House panel now has demanded similar actions against them.
"So far as the involvement of the ministers in the procurement is concerned, the secretary of the Ministry is the chairman of the NAC Board of Directors and has the responsibility of clearing the arrears. Therefore, the greater responsibility for cautions was of the secretary, the ministers did not exhibit enough attention to the aircraft procurement process which was against the Public Procurement Act 2006," said the PAC.
The PAC had directed the government and the CIAA to suspend Secretary of the Tourism Ministry Krishna Prasad Devkota and Managing Director of the NAC Sugat Ratna Kansakar and initiate a process to exert maximum punishment to them as they incurred a huge loss to the country.
"Even though the report of the AG had mentioned that the aircraft procurement process was not according to the law, Secretary Devkota has continued the process of buying an old aircraft and made the payment of the later instalments instead of examining the procurement activities," read the PAC decision.
Similarly, the committee said that Kansakar played the main role in purchasing the old aircraft with ill-intention. "He has abused his authority. Therefore, he should be suspended and punished as per the law."
The PAC has demanded similar actions against the erstwhile tourism secretary and NAC Board Chairman Shankar Prasad Adhikari.
It also held the NAC Board members responsible in abusing their authority and demanded severe actions against them.
The House panel also directed the government and the CIAA to investigate into the involvement of the members of various sub-committees formed while procuring the aircraft.

However, the PAC gave a clean chit to former Tourism Secretary and NAC Board Chairman Prem Kumar Rai saying that he was not holding the post while formulating the Request For Proposal (RFP) to procure the aircraft.

Published in The Rising Nepal daily on 8 January 2019.  

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