Nepal’s anti-graft watchdog has filed one of the largest corruption cases in the country’s history, charging 55 individuals and a Chinese construction firm over alleged massive financial irregularities in the construction of the China-funded Pokhara International Airport. The case was lodged at the Special Court on Sunday, as per reports in The Kathmandu Post.
According to the Kathmandu Post, the Commission for Investigation of Abuse of Authority (CIAA) has accused former ministers, top bureaucrats, Civil Aviation Authority of Nepal (CAAN) officials, university professors, and executives of China CAMC Engineering Co Ltd of artificially inflating project costs. Each of the 56 defendants has been asked to compensate Rs 8.36 billion, which the CIAA says represents losses caused by manipulating the airport’s cost estimates.
The charge sheet states that the defendants “revised the approved cost estimate with malicious intent,” enabling excessive and unlawful payments. The Special Court noted that this is the biggest corruption case it has handled in terms of the money involved in a state procurement process.
The Pokhara International Airport, promoted as Nepal’s next international aviation hub, opened in January 2023. Yet, as per reports, it has not secured a single scheduled international flight, raising further doubts about its economic and technical justification.
The Kathmandu Post reported that the CIAA is also conducting three additional investigations linked to the airport project. Last week, the anti-graft body filed a separate corruption case against CAAN Director General Pradeep Adhikari over irregularities in a heliport project.
The Pokhara airport project, conceived in the 1970s, has a long history of delays, political interference, and controversy. As per reports, a secret 2011 MoU between then-finance minister Barsha Man Pun and CAMC executives, pledging government support to the Chinese contractor, triggered parliamentary scrutiny and public criticism.
Despite cost discrepancies, public protests, and repeated expert reviews, officials approved a revised estimate of $215.96 million and pursued a soft loan from China EXIM Bank. The CIAA alleges that illegal advisory groups were formed, assessments manipulated, and inflated valuations approved, resulting in an excess payment of $74 million to CAMC. Trial in the Special Court is expected to begin shortly.
