PAC report on plane purchase incomplete, biased: MPs

Kathmandu, Jan. 4:

Several lawmakers have termed the report on 'the procurement of the wide-body aircraft by  Nepal Airlines Corporation (NAC)' prepared by the sub-panel of the Parliament's Public Accounts Committee (PAC) 'incomplete' and 'biased'.

Speaking at the PAC meeting on Friday, they said the report missed the sales bill from the Airbus – French aircraft manufacturer, and claimed that the misappropriated amount might go up which was a baseless claim.

The subcommittee led by lawmaker Rajendra Kumar KC has concluded that about Rs. 4.355 billion was misappropriated while obtaining the two wide-body aircraft which were delivered to the NAC in June and July last year. It also claimed that the actual loss from the purchase might go up after the Airbus sent information about the actual amount it received against the purchase.

The NAC had purchased the wide-body A330-200 aircraft from a US-based AAR Inc. for around Rs. 24 billion.

"The subcommittee has prepared the report on the basis of the media reports and gave it a final shape on the basis of correspondence with the Airbus but without getting any response from the latter. So, the report is incomplete," said lawmaker Bishal Pathak.

Lawmaker Parvati Kumari Prasain said that the report missed the main source of the corruption and observed the event superficially.

"This is an incomplete report which lacks many important information," she said. 

Many of them raised question over the technical competencies of the subcommittee members about the engine and other equipment of the aircraft.

Similarly, they said that the report was against the principle of natural justice as it accused everyone concerned to the aircraft purchase equally 'responsible' and asked severe punishment to those who were seemingly less guilty.

"The report has held responsible to those who simply completed the tender process but demands no punishment to those who initiated the purchase process, changed the NAC bylaws and decided to procure a used plane instead of a new one," said lawmaker Hridayesh Tripathi who had  chaired the PAC in the past.

"The report had just held the Tourism Ministers who initiated the process 'morally responsible' while demanded a serious legal action against the incumbent Tourism Minister Rabindra Adhikari who did nothing but sent the remaining instalment of the purchasing price," he added.

He said that if the remaining instalment was not sent, there was a risk of losing the earlier instalments which would be greater loss to the nation.

Tripathi said that it was unfair to hold all tourism secretaries, chairmen of NAC Board of Directors, and the ministers responsible in the case.

Similarly, former Communication Minister Dr. Minendra Rijal suggested that the subcommittees under the PAC must not exhibit any political linings in their investigation and dealings.

The study committee must have looked into the series of events like who decided to purchase the aircraft, who sent the first instalment of the money and who amended the NAC Bylaws to purchase the used plane, he said.

Likewise, lawmaker Bishal Bhattarai said that the report was biased towards Minister Adhikari.

"The report has proposed similar punishment for those who committed crimes of different nature and varied punishment for those who were involved in similar wrong-doings," said Yagya Bahadur Bogati.

The lawmakers also asked what the intention behind the appointment of Sugat Ratna Kansakar as the Managing Director of the national flag carrier was.

"It seems that there was a kind of political consensus while procuring the planes," said Tripathi.

Published in The Rising Nepal daily on 5 January 2019.