Five former ministers among 55 charged in Pokhara Airport corruption scam

KATHMANDU, Dec 8: The Commission for the Investigation of Abuse of Authority (CIAA) has filed a major corruption case against 55 individuals, including five former ministers, over large-scale financial irregularities in the construction of the Pokhara Regional International Airport (PRIA). The anti-graft body has sought a recovery of Rs 8.36 billion and maximum prison sentences against all the accused.

The former ministers named in the charge sheet are Dr Ram Sharan Mahat, late Post Bahadur Bogati, Ram Kumar Shrestha, Bhim Prasad Acharya, and Deepak Chandra Amatya.

Former finance minister Dr Ram Sharan Mahat is accused of approving an inflated project cost on July 30, 2014, raising the estimate from USD 169.69 million to USD 215.96 million. With VAT and contingencies, the final contract value reached USD 244.04 million. Based on this decision, a contract was signed and a loan application was sent to the China Exim Bank following Cabinet approval. Several senior officials from the Ministry of Finance, including then chief secretary Somlal Prasad Sharma, have also been implicated in this process.

Late minister Post Bahadur Bogati is accused of bypassing the Public Procurement Act after none of the initial bidders qualified for the project. On July 15, 2015, under his leadership, the airport board allowed China CAMC Engineering Co. Ltd to proceed, even though its bid of USD 305.12 million was about 85 percent higher than the original estimate. As Bogati passed away 12 years ago, his wife Ram Maya Bogati has been made a defendant.

Former minister Ram Kumar Shrestha is charged with abusing his authority to approve decisions that paved the way for the inflated project cost. Investigators say the revised estimate was based on a manipulated engineering report prepared on November 25, 2013 with malicious intent.

Former tourism minister Bhim Prasad Acharya is accused of directing the Civil Aviation Authority of Nepal (CAAN) on April 6, 2014, to move ahead with the Chinese contractor, and later approving a USD 215.96 million loan from China Exim Bank on October 31, 2014.

Former minister Deepak Chandra Amatya is accused of endorsing the airport project on October 26, 2014, under the EPC (Engineering, Procurement and Construction) model, based on the inflated cost and modified design, clearing the proposal for Cabinet approval.

Following these decisions, construction was carried out between August 2018 and December 2022, during which USD 224.72 million was paid to China CAMC Engineering. Investigators concluded that USD 74.34 million of this amount was paid solely due to artificial cost inflation, providing undue financial benefit to the contractor.

Among other accused are the Director General of the Civil Aviation Authority of Nepal, Pradeep Adhikari, who was recently jailed for his alleged involvement in corruption linked to the Bhaktapur–Nalinchok Heliport project, and former National Inclusive Commission chair Ram Krishna Timilsina. Four former secretaries—Sushil Ghimire, Suresh Man Shrestha, Suman Prasad Sharma, and Bhes Raj Sharma—along with former CAAN directors general Triratna Maharjan and Ratish Chandra Lal Suman, have also been charged.

Earlier, a subcommittee under the Public Accounts Committee of the House of Representatives had formally asked the CIAA to investigate the project after finding serious irregularities during the airport’s construction.