Nepal | August 07, 2020

CIAA summons foreign firms

• NAC PROCUREMENT SCANDAL

Himalayan News Service
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Kathmandu, April 18

The Commission for the Investigation of Abuse of Authority (CIAA) has summoned for inquiry five different international agencies involved in the procurement of two wide-body aircraft for Nepal Airlines Corporation (NAC).

Publishing a second notice today, the anti-graft body has asked representatives of the Hi Fly X Ireland Ltd, AAR International of USA, German Aviation Capital GMBM of Frankfurt, Germany, Hi Fly-Transporte Aereos SA (Hi Fly Airlines) of Portugal and Norton Rose Fullbright LLP of Germany to appear for inquiry at CIAA within seven days of the notice.

“We have summoned these agencies for inquiry in relation to the complaint registered at CIAA about the purchase of A330-200 aircraft by NAC. Failure to comply with this notice shall result in legal actions as per prevailing laws,” reads the CIAA notice.

As a part of its investigation, the CIAA has been recording statements from all agencies and individuals involved in the purchase of two wide-body aircraft by NAC after the entire procurement landed in controversy. CIAA has already recorded statements of NAC officials in connection to this case.

Earlier, a probe carried out by the Public Accounts Committee of the Legislature-Parliament had found irregularities in Nepal Airlines Corporation’s deal to purchase two Airbus 330-200 series wide-body aircraft. The committee had found that the NAC board did not properly follow the Public Procurement Act and bought planes that did not match the weight specified in the initial request for proposal. Moreover, the PAC report had stated that corruptions worth billions had been made while purchasing these aircraft for NAC and had recommended the CIAA to carry out further investigation into the issue.

Likewise, the Office of the Auditor General (OAG) had also stated earlier that NAC had exploited loopholes in Public Procurement Act and the corporation’s bylaws while acquiring wide-body aircraft.


A version of this article appears in print on April 19, 2019 of The Himalayan Times.


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