CIAA not to act against Fulbari promoters

Kathmandu, September 10 :

The Commission for the Investigation of Abuse of Authority (CIAA) recently decided not to initiate action against the promoters of the Pokhara-based Fulbari Resort for alleged bank default case.

The CIAA stated that there was no ground to say that it was a corruption case as the Nepal Bank, the Rastriya Banijya Bank, the Nepal Industrial and Development Corporation and the Employees’ Provident Fund Office invested in the resort. The banks and the financial institutions have provided Rs 1. 81 billion and now the Resort have to pay Rs 3.64 billion with interest. The CEO of the Nepal Bank Limited J Craig McAllister had filed a complaint in the CIAA demanding recovery of more than Rs 3.64b from the promoters of the Fulbari Resort including its promoters Pyush Bahadur Amatya about three years ago.

“There was no ground to say that the investment is in wrong place as the promoters have already given the guarantee for the bank and financial institutions,” the text of the CIAA decision states. The text also said that the lead partner of the investment bodies Nepal Bank had already filed a case in the Debt Recovery Tribunal seeking recovery of the loan, thus there was no need to initiate action under the Corruption Control Act 2002.