Pokhara Airport is only a representative case of grave corruption and irregularities that are omnipresent in Nepal
Recently, international media, including The New York Times, Business Standard and Deccan Herald, reported on the grave corruption contentions associated with the construction of Pokhara Airport. The reports cited the findings of the parliamentary sub-committee formed to investigate the involvement of officials and lawmakers in irregularities and corruption associated with the US$ 216 million international airport where no regular international flights have operated so far. These reports have propagated Nepal's pervasive corruption scandal onto the global stage.
In addition to the corruption amounting to a whooping $105 million in the Pokhara Airport, grave engineering flaws and safety concerns were also exhumed by the parliamentary sub-committee led by Member of Parliament Rajendra Lingden. These pitfalls are making the headlines of national as well as international media. The airport that was inaugurated in 2023 was built with a 20-year loan from the state- owned Export-Import (EXIM) Bank of China. Moreover, the construction was overtaken by China CAMC Engineering, the construction subsidiary of a state-owned conglomerate, Sinomach. Hence, the international media outlets are also implicating China in the corruption and irregularities associated with the airport.
Even without scrutinising the trivial details associated with the construction of Pokhara airport as reported by the parliamentary sub-committee, it is obvious that the second international airport has become a financial albatross for Nepal. Airports are meant to generate revenue through the operation of regular national and international flights. In contrast, Pokhara airport is not getting enough regular international flights. Forget about the debt that Nepal has to pay to EXIM bank, the airport is not being able to generate even its operational costs.
Pokhara Airport is only a representative case of grave corruption and irregularities that are omnipresent in Nepal. Countless similar cases of irregularities involving officials, contractors and lawmakers have regularly surfaced over various construction projects. As Nepal is already grey-listed by the Financial Action Task Force (FATF), the dissemination of state-sponsored corruption charges in the global arena will be detrimental for Nepal in improving its financial standing.
Interestingly, the parliamentary sub-committee has pointed out the involvement of only the government officials in the irregularities associated with Pokhara airport. However, it is clear as daylight that such large-scale corruption could not have been possible without the direct involvement of lawmakers and high-level political leadership. Unfortunately, the political leadership is always exempted from corruption charges, be it the Sudan armored personnel carrier (APC) scandal, Lalita Niwas land case, Widebody purchase irregularities, or the fake-Bhutanese refugee scam. Financial irregularities, engineering mishaps and security lapses associated with the construction of Pokhara Airport add up to the list of state-owned corruption that has officially exempted the involvement of political leadership.
In addition to Nepal's plummeting financial standing, the Pokhara airport corruption scandal is going to have severe diplomatic implications for Nepal. China being dragged by the international media into the corruption allegations will weaken Nepal's bilateral relations with China. In fact, Nepal has asked China to convert the $216 million loan used for the construction of Pokhara Airport to a grant to alleviate its financial burden. Now, following the revelation of large-scale corruption in this project, the possibility of this appears slim. Over that, international financial institutions are likely to have reservations about funding future construction projects in Nepal.
The state-sponsored corruption backed by policy-level decisions is gravely affecting Nepal's all-round development. Nepal's proliferation of low-priority, substandard infrastructure projects, such as scores of view towers throughout the country, unnecessarily complex and superfluous rural roads, and underutilised airports, is draining a large portion of national resources, foreign loans and development grants. The allegations of irregularities at Pokhara Airport are merely the tip of the iceberg, hinting at a deeper corruption crisis that threatens to sink Nepal's financial stability.
Time is running out for Nepal. The concerned anti-corruption authorities should scrutinise the findings of the parliamentary sub-committee and apprehend the culprits involved in Pokhara Airport irregularities. The report is still incomplete as it has not investigated the involvement of political leadership in the irregularities. Hence, all the political leaders, lawmakers and ministers involved directly or indirectly in the policy-level decision on Pokhara Airport should also be brought to book. As Nepal's financial standing, international reputation and diplomatic relationship are at stake, the government should handle this case with utmost priority.
Following the example set by the Pokhara Airport irregularities, it is essential to retrospectively investigate the involvement of political leadership in past high-profile corruption cases. Such actions would serve as a testament to Nepal's commitment to financial reform. Unfortunately, given the current leadership's moral reputation and lack of financial integrity, such actions are not going to be executed anytime soon. The present cohort of corrupt leadership is unlikely to open the floodgates of accountability, knowing that it will ultimately engulf them. For the time being, speaking out against corruption feels like a Sisyphean task – endlessly pursued, yet tragically futile.
Dr Joshi is a senior scientist and independent opinion maker based in Germany
pushpa.joshi@gmail.com
