A report was prepared by the sub-committee of the Public Accounts Committee, saying that there had been corruption by negotiating against the Public Procurement Act, cost increase of 6.56 billion, return of 2.22 billion for tax exemption, additional payment of 320 million in Chhinedada cut, etc.
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The sub-committee under the Public Accounts Committee of the Parliament has concluded that there is corruption in the construction of the Pokhara International Airport right from the contract process. The sub-committee has recommended the suspension of 8 technicians and employees, including the then project chief and current director general of the Civil Aviation Authority, Pradeep Adhikari.
The sub-committee formed under the coordination of RPP Chairman Rajendra Lingden, member of the Audit Committee, investigated the construction of Pokhara Airport.
The name of the political leadership involved in various decision-making processes during the construction period of the airport has not been mentioned by the sub-committee. But the sub-committee has mentioned in the report that there should be a quick investigation on the decision-making officials involved in the policy, procedure and implementation of the airport from the feasibility study to the completion of the construction.
The sub-committee has concluded that the contract process was concluded by negotiating a large price increase before the start of the airport construction. Although the authority estimated the cost at 145 million US dollars (13.59 billion rupees according to the exchange rate of 2014), the sub-committee came to the conclusion that the contract was irregular by 70 million dollars (6.56 billion rupees).
It is mentioned in the report of the sub-committee that loans were taken without a feasibility study and a strategic action plan for airport operation, environmental impact assessment was not done before airport construction and demolition, and the airport construction process was carried out according to the wishes of the construction company rather than the requirements.
The sub-committee has also found that the same company that got the contract paid 322 million rupees to another company for cutting the trees, entered into a new contract to give tax exemptions contrary to the original agreement and committed irregularities of 2.22 billion rupees.
The Accounts Committee formed an 11-member parliamentary inquiry subcommittee headed by Lingden last June. The report of the sub-committee was signed by coordinator Lingden, members Arjunnar Singh KC of Congress, Janardhan Sharma of Maoists and Aman Lal Modi and Prem Elle of the United Socialist Party. UML's Gokulprasad Baskota and Tara Lama Tamang, Congress's Deepak Giri, Ramakrishna Yadav and Devprasad Timalsena's signatures are not in the report. UML's Rukmini Rana Barailly, who was a member of the
sub-committee, has been transferred to another committee. His name will be removed and the report will be submitted to the Audit Committee. UML MP Tamang said that he is yet to sign the report as he has come to his home district Kanchanpur. Congress MPs Deepak Giri and Ramakrishna Yadav also said that they are yet to sign the report as they are in the constituency. Lingden, coordinator of the
subcommittee, expressed confidence that the rest of the committee members would also sign the report. Even if no one signs, the report is submitted to the committee. The report recommends investigation and action,” he said. According to Lingden, the Khilraj Regmi-led government, which has a mandate to hold elections only, has formed various committees to legitimize corruption in the construction of the airport. "We are going to recommend that the name of the employee be listed and that other decision-makers involved in the decision-making process should also be prosecuted," he said. In the
sub-committee's report, it is mentioned that "there was a policy decision to increase the cost points by forming a 3-member task force with the intention of providing legitimacy to corruption contrary to the Public Procurement Act and popular belief". The sub-committee concluded that there were widespread irregularities during the construction from the financial and technical point of view.
"Civil Aviation Authority, Ministry of Culture, Tourism and Civil Aviation and Ministry of Finance have repeatedly committed economic irregularities amounting to 2.22 billion 4 million based on the master list by making new implementation agreements with the intention of making economic irregularities by giving tax exemptions contrary to the provisions of the original agreement," the report said.
The sub-committee said that the on-site observation of the airport, inquiries with the relevant agencies and individuals and the documents available from the relevant agencies were also studied. The sub-committee recommends that those involved in corruption and irregularity should be prosecuted by the relevant agencies after studying the overall aspect of the airport construction from a legal and technical point of view.
It is mentioned in the report that the commission of inquiry into legal, technical, economic, environmental and technological irregularities and corruption should investigate and come to a conclusion and the culprits of irregularities or corruption should be dealt with according to the law.
The sub-committee also recommends that the tax exemption pointed out in the Auditor General's 60th annual report should be promptly filed in the federal fund, and all those involved in tax exemptions, including tax exemptions, and all other types of irregularities and corruption should be immediately prosecuted to the full extent of the law, and the incumbents should be immediately suspended, and the authority and the money laundering investigation department should be instructed to carry out the necessary procedures in other matters.
The conclusion of the sub-committee is that all decision-making officials, employees and officials of the authority involved in the policy, procedure and implementation of the airport from feasibility study to completion of construction should be punished.
The sub-committee recommends that Pradeep Adhikari, Director General of Pokhara Airport (2071 to 74, Director General of Civil Aviation Authority from 2071 to 2078, Civil Aviation Authority to date) and Vinesh Munakarmi, head of Pokhara International Airport Project (2074 to present) should be immediately suspended and the Authority and the Money Laundering Department should be instructed to investigate and take action to the extent permitted by law.
Others who should be recommended are Chandmala Shrestha, Director of Rashtriya Gaurav Project, Pravin Neupane, Project Engineer, Rajendra Prasad Poudel, Head of Project Administration, Baburam Poudel, Director of Authority, Sanjeev Gautam, Rajan Pokharel, former Directors General of Authority and other incumbent officials involved.
The sub-committee suggests that those involved in corruption and irregularities should be dealt with by the relevant agencies after a comprehensive study of the overall aspect of the airport construction, including from a legal and technical point of view. The sub-committee is of the opinion that the government should initiate commercial operations only by making the airport fully operable.
The sub-committee mentioned in the report that it was found that the soil test of the runway was completed without sufficient time. The sub-committee also stated that the reason and justification for addition of cement and concrete structures including 'Runway', 'Taxi Way Pavement' and 'Arrow Bridge' against the original agreement and design has not been confirmed. It is mentioned in the report that 106 million 48 thousand 394 US dollars were paid to dig soil for the construction of runway, taxiway, apron, dam, drain, but it was found that the work was not done.
It has been found in the study of the subcommittee that 44 lakh 35 thousand 3 hundred 3 US dollars were paid to fill the runway, taxi way, apron, dam, drain, but the work was not done. According to the main contract, 54 lakh 99 thousand 542 US dollars were paid to bring gravel and soil from outside the airport, but the soil was not brought from outside and the documents were not available, according to the sub-committee.
The "additional item" in the main agreement is 152 million 30 thousand US dollars. But in the final bill, the total "additional" amount is 204 million 36 thousand 960. A total of 222 million 54 thousand 218 dollars has been irregular for soil at the airport," the report states.
It is mentioned in the report that there are irregularities in the stones mixed with gravel and soil when the height of the runway is lowered. According to the report, the authority has paid 742 thousand 659 US dollars from its budget for the installation of HV AC system, contrary to the agreement to be made from the funds of the airport's 'feasibility' project. The authority has also found the 'handover certificate' in the study without the completion of the entire construction work.
Similarly, it is mentioned in the report of the sub-committee that the construction of fuel storage at the cost of 220,000 USD was mentioned within the airport, but that was not done. During all these processes, Director General Pradeep Adhikari was the project leader at the time of decision making and implementation, according to the report. The sub-committee said that the complaint filed with the authority regarding the increase in the cost of construction of Pokhara airport was taken as a 'notice' to those kept in Tameli on 12 Chait 2070.
The Ministry of Finance gave approval to the Civil Aviation Authority to build Pokhara Airport as an international airport on 11 December 2068. This airport was built on the 'Engineering, Procurement and Construction (EPC)' model.
China provided concessional loans for the construction of the airport through the Exim Bank and the construction was started on the condition that only Chinese construction companies could compete. A contract agreement worth around 22 billion rupees was signed between the authority and the Chinese company CAMC Engineering for the construction of the airport on 8th June 2071. It is mentioned in the agreement that the interest will be paid within 7 years after the construction is completed and the principal will be paid in 26 installments within 13 years after 7 years.
Irregularities seen by the parliamentary sub-committee
