Even before a new government takes charge in Nepal, recent revelations have cast doubt on the previous government’s economic links with China. Former Prime Minister K.P. Sharma Oli, despite facing opposition, initiated projects under China’s Belt and Road Initiative (BRI), known for causing debt issues in other countries. The Nepal Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case involving 21 individuals, including two Chinese officials, over the alleged misuse of funds during the construction of Pokhara International Airport.
The CIAA has accused individuals of embezzlement through contract manipulation and unauthorized consultancy payments during the China-funded project. The investigation also implicates China CAMC Engineering Co Limited for allegedly acting in bad faith to secure the airport project. Established to combat corruption, the CIAA is seeking to recover Nepali Rupees 461.58 million from those involved in the case.
Nepal’s aviation sector, plagued by safety issues and EU blacklist status, faces additional scrutiny due to the Pokhara airport scandal. The government had previously initiated probes into airport shortcomings to enhance safety and operational efficiency. Concerns over China’s investments in Nepal, especially under the BRI, have escalated following financial troubles in other countries like Sri Lanka and Pakistan. The recent election saw a shift away from Oli’s pro-China stance, indicating potential changes in Nepal’s foreign policy approach.
