Saturday, December 13, 2025

CIAA files corruption case against 55 individuals

 Kathmandu, Dec. 7

The Commission for the Investigation of Abuse of Authority (CIAA) has filed cases against 55 persons, including five former Culture, Tourism and Civil Aviation ministers, including late Posta Bahadur Bogati and former Finance minister Dr. Ram Sharan Mahat, for misusing the funds of Pokhara Regional International Airport.

Based on the complaint filed by the Civil Aviation Authority of Nepal (CAAN), the anti-graft body alleged that the ministers, secretaries, construction company colluded to increase the contract construction cost to US$244.04 million against the cost fixed at US$169.69 million. The CIAA said that there was an unnatural increment in the project cost by US$74.34 million (Rs. 8.36 billion as per 112.55 exchange rate of Nepali Rupee on 10 August 2018).

Former ministers Ram Kumar Shrestha, Bhim Prasad Acharya, Deepak Chandra Amatya are indicted by the CIAA. Since former Minister Bogati has already passed away, his wife, Rammaya Bogati, has been made the defendant.

Former Secretary of the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) Sushil Ghimire, Suresh Man Shrestha, Suman Prasad Sharma, Bhesh Raj Sharma, Deputy Secretary Ranjan Krishna Aryal, Mohal Krishna Sapkota and Lok Bahadur Khatri, and former board members of the Civil Aviation Authority of Nepal (CAAN) Committee Man Rup Shahi, Jyoti Adhikari, Manoj Karki, Furba Chiring Sherpa, Suresh Acharya, Madan Kharel, Mukti Narayan Paudel, and Surya Prasad Acharya are also involved.

Similarly, former Director Generals of the CAAN Civil Aviation Authority, Tri Ratna Manandhar, Ratish Chandra Lal Suman, former Deputy Director General Suman Kumar Shrestha, and Deputy Secretary of the Ministry of Tourism Hari Bahadur Khadka have also been indicted.

In relation to irregularities at the airport, the sub-committee under the Public Accounts Committee of the House of Representatives concluded in April this year that corruption had occurred at the project developed with Chinese support. China has also been saying that the project was included in the Belt and Road Initiative (BRI).

The house panel had directed the CIAA to conduct an investigation. According to the sub-committee formed by the PAC, irregularities were estimated at around Rs. 10 billion.

 

‘China CAMC acted in bad faith’

Cases are also filed against the construction company China CAMC Engineering Co. Ltd.

“Ignoring the public procurement regulations, the contractor company CAMC Engineering acted in bad faith, without reasonable justification inflated the cost estimate unnaturally. This was done to unlawfully benefit itself and other involved defendants,” the CIAA said in a statement.

It also said that it has been observed that China CAMC Engineering Co. Ltd. communicated with public servants in bad faith to achieve this inflated cost.

According to it, immediately after the approval of the cost estimate, the China CAMC Engineering unlawfully submitted a proposal to increase the project cost to US$287 million, which was done in bad faith. “This indicates that the company was attempting from the very beginning of the construction procurement process to secure the contract at an inflated price by any means necessary,” read the statement.

On 21 March 2012, a Pre-Bid Meeting was held at the CAAN with representatives from China CAMC Engineering Co. Ltd. During the meeting, no questions were raised about the approved cost estimate, but later, defendants unlawfully manipulated the tender evaluation process to secure an inflated contract.

Likewise, in response to a letter from the MoCTCA , the Ministry of Finance advised that technical decisions regarding the airport design, approval, and cost limits should be made in accordance with the law. Despite this, the Tourism Ministry proceeded with a proposal to the Cabinet, showing bad faith in the contracting process for Pokhara Regional International Airport.

 

Cabinet used as a shield

Even though the Cabinet's decision on 20 February 2013 clarified that the matter should not be repeatedly presented, concerned government officials continued to push the proposal through the Cabinet, likely aiming to protect themselves from legal consequences and misuse of authority, demonstrating a clear intent to act in bad faith, according to the CIAA.

According to it, the decision of the CAAN’s Board on 29 October 2013, to send the revised cost estimate for government approval, was unlawful. By involving China CAMC Engineering Co. Ltd. in the procurement process and approving nominal consultation, the defendants' illegal collusion and intent to further their personal interests obstructed proper procurement procedures.

Despite knowing that it violated the Cabinet's decision of 11 September 2013, the MoCTCA, alongside the CAAN, manipulated the procurement process, bypassing legal protocols and intentionally acting in bad faith to advance the project unlawfully.

The CIAA concluded that despite receiving clear guidance from the Public Procurement Monitoring Office, the CAAN, through illegal collusion with various officials, continued the procurement process, seeking to cover up wrongdoing and avoid accountability, contrary to Nepal's procurement laws.

Published in The Rising Nepal daily on 8 December 2025.

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