Nepal’s anti-graft body has taken legal action against a former minister, current and former officials, a Chinese company, and its representatives for alleged corruption in the construction of Pokhara International Airport. This marks the fourth instance where the Commission for Investigation of Abuse of Authority (CIAA) has filed a corruption case related to the project, which was funded by China. Despite the significant investment of $215.96 million from the China Export-Import Bank, the airport has not seen any scheduled flights, raising concerns about the project’s effectiveness.
The CIAA has accused former finance minister Gyanendra Bahadur Karki, along with several ex-government secretaries and officials, totaling 11 public officials, in the corruption case. Additionally, the Chinese contractor, China CAMC Engineering Co., Ltd., and its officials, Chairman Wang Bo and Project Manager Yang Zhigang, are also facing charges for allegedly aiding officials in corrupt activities. The anti-graft body alleges that there was collusion between public officials and the Chinese company to provide illegal tax and customs exemptions, breaching the original procurement agreement.
The defendants are charged with causing a loss of NPR 3.62 billion in government revenue due to the unauthorized tax exemptions. According to the CIAA, the commercial contract between the Civil Aviation Authority of Nepal and China CAMC Engineering Co., Ltd. already included taxes and customs duties in the contract price, which the contractor was obligated to pay under Nepali law. However, an additional implementation agreement exempted the company from these payments, leading to what the CIAA termed as a “double benefit.”
