Questions govt inaction over Nepal Airlines decision
KATHMANDU, JUNE 30
The Supreme Court on Tuesday issued a show cause notice to the government, asking why no investigation has been launched into Nepal Airlines Corporation's controversial purchase of Chinese-made MA60 and Y12E aircraft that have remained grounded for years despite costing the state billions of rupees.
A single bench of Justice Bal Krishna Dhakal issued the order in response to a writ petition filed by chartered accountant Bheshraj Luitel against Nepal Airlines Corporation (NAC) and other government agencies, seeking an independent probe into the procurement process and accountability for the financial losses incurred.
The petition has asked the court to direct authorities to conduct an independent investigation into all individuals involved in the procurement process, including government officials, decision-makers and advisers. It further seeks legal action within two months against those found guilty of corruption or abuse of authority, along with recovery of state losses from those responsible.
Luitel has also sought a court order directing Nepal Airlines to submit within 15 days a comprehensive report detailing expenditures incurred on the aircraft, including parking charges, maintenance costs, insurance, staffing and other operational liabilities.
Arguing that the Chinese aircraft were unsuitable for Nepal's aviation needs and had failed to gain acceptance in international markets, the petitioner said the planes remained largely grounded because they could not be operated efficiently, resulting in significant financial losses for the national carrier. Nepal Airlines officially stopped operating the aircraft in 2020.
In the petition, Luitel argues that concerned authorities failed to conduct an impartial and effective investigation into billions of rupees in public losses arising from the procurement of the aircraft, while also failing to determine accountability of officials involved in the decision-making process.
The petition states that feasibility studies, technical evaluations and financial assessments conducted prior to the purchase had concluded that the MA60 and Y12E aircraft would be technically viable, profitable and sustainable for Nepal Airlines in the long term. However, those assessments have since proven to be deeply flawed, unreliable or seriously negligent.
According to the petition, the government incurred foreign loans and financial liabilities worth billions of rupees to procure the aircraft, while Nepal Airlines itself estimates that nearly Rs 500 million is spent annually on ownership, maintenance, insurance and management of the grounded fleet without generating any commercial return.
"This demonstrates that decisions surrounding procurement, feasibility assessments and subsequent management imposed long-term financial liabilities on the state and caused serious damage to public property," the petition argues.
Luitel has identified members of the procurement study committee - including Nar Bahadur Rai, Captain Shrawan Rijal, Kiran Sharma, Keshav Raj Sharma, Mukund Prasad Joshi, Madan Kharel, Saroj Kasaju and coordinator Ganesh Thakur - whose report had concluded that the aircraft were technically, economically and operationally suitable for Nepal Airlines.
The petitioner has demanded that the actual extent of losses suffered by the state be made public, compensation recovery proceedings be initiated, and legal action be taken against those found responsible.
The petition also seeks a court directive requiring authorities to submit complete procurement records, including feasibility studies, financial evaluations, loan agreements, Cabinet decisions, Nepal Airlines board decisions and all other documents related to the aircraft purchase.
