After a months-long investigation, a parliamentary subpanel in Nepal has concluded that approximately Nepalese Rupees (NRs) 14 billion was embezzled during the construction of the China-loaned Pokhara International Airport. The investigation, conducted by a subpanel of the House of Representatives' Public Accounts Committee (PAC), confirmed irregularities and corruption in the airport's construction.

China CAMC Engineering, the construction division of state-owned conglomerate Sinomach, played a significant role in the project, importing building materials and machinery from China.

The 12-member committee, led by Rastriya Prajatantra Party (RPP) president Rajendra Lingden, has identified irregularities related to the construction and tax exemptions provided to the construction companies, classifying them under 11 sub-topics for further study by lawmakers.

According to a subpanel member, the Finance Ministry did not provide all requested documents during the investigation, and the actual figures of embezzlement might be even higher. The subpanel suggests the soil at the construction site was unsuitable, necessitating an increase in the runway's elevation. 

Although approximately USD 5.5 million was allocated for transporting soil and pebbles, the study found that no soil was brought from external sources. Additionally, the runway was built at an elevation of 2,636 feet above sea level, contrary to the agreed-upon elevation between 2,677 and 2,674 feet.

The Civil Aviation Authority of Nepal (CAAN) spent 320 million Nepali rupees to level a hill that posed a threat to aircraft, despite the agreement stipulating that the Chinese contractor was responsible for all necessary arrangements to make the airport operable. The CAAN also spent USD 742,659 to install a HVAC system, even though the Chinese contractor was responsible for installing all ACs in the airport. Payments totalling USD 10.648 million were made to the Chinese constructor for drainage work alongside the runway, taxi-bay, and apron, but the subpanel found that the payment was made without any work being done.

Furthermore, the Chinese contractor was paid USD 4.435 million without undertaking the work of pressing the soil to level the runway, taxi-way, and drainage, and USD 5.5 million without bringing soil from an external source. The construction company also received a tax exemption worth NRs 2.2 billion, despite the contract agreement stating that the construction company would pay the taxes.

The subpanel has recommended the immediate suspension and further investigation of Pradeep Adhikari, director general at the authority, as well as former director generals Sanjeev Gautam and Rajan Pokharel, project head Binesh Munakarmi, and director Baburam Poudel. They have also called for a probe against Chandmala Shrestha and Prabin Neupane, directors of the national pride projects, and its administrative chief Rajendra Prasad Poudel.

ANI