Final hearing begins in Melamchi Water Project corruption case

Kathmandu, August 26 — The final hearing has commenced in the case filed by the Commission for Investigation of Abuse of Authority (CIAA), which alleges corruption in the national pride Melamchi drinking water project. The bench, comprising Special Court Chairman Teknarayan Kunwar, Tejnarayan Singh Rai, and Murari Babu Shrestha, began the final hearing on Sunday.

The CIAA filed a corruption case against 14 individuals on February 18, 2024, including three former secretaries, as well as consultants and construction companies, accusing them of financial irregularities due to repeatedly extending the project's deadline.

The indictment claims that payments were improperly made in the project and that the accused were involved in this process. It alleges that construction professionals were paid without performing any work and that a construction company failed to pay amounts due while using abandoned machinery and materials.

According to Dhan Bahadur Karki, spokesperson for the Special Court, the hearing for the verdict began on Sunday. Karki stated that the case will be resolved through continuous hearings.

The next hearing is scheduled for Tuesday. Arguments on behalf of the defendants started on Sunday. With 16 individuals needing to present arguments, the Special Court aims to conclude the hearings within about a week.

Special arrangements are being made to allocate four days for the writ petitioner, two days for the government representatives, and one day for the counterarguments. However, due to the large number of legal professionals involved, the court noted that meeting these deadlines might be challenging.

CIAA's case targets the then-chairman of the committee, three former secretaries of the Ministry of Water Supply, two members, three former executive directors, and one former joint secretary of the Ministry of Finance.

The CIAA has demanded Rs 40 crore 11 lakh 34 thousand 279 from Bhim Prasad Upadhyay, Rs 60 crore 49 lakh 19 thousand 884 from Gajendra Thakur, and maximum imprisonment under the Prevention of Corruption Act, 2001. Additionally, a claim of Rs 6 crore 97 lakh 83 thousand 178 has been made against Mukunda Prasad Paudel, the then joint secretary of the Ministry of Finance and former board member.

CIAA alleges that the state suffered damage due to excessive payments to consultants and construction companies through the project.

Additionally, a claim has been made against Rudra Singh Tamang, then a board member and Director General of the Immigration Department, who was suspended following the corruption case.

Claims of Rs 22 crore 75 lakh 19 thousand 896 have been made against the then executive directors of the committee. Ramchandra Devkota faces a claim of Rs 32 crore 35 lakh 61 thousand 663, while Suryaraj Kandel is claimed to owe Rs 89 crore 8 lakh 98 thousand 285.

Mani Bhadra Neupane, Begnath Paudel, and the then accounting officer Ramchandra Neupane are required to pay Rs 32 crore 35 lakh. Kedar Prasad Aryal, the then deputy secretary of the committee, faces a claim of Rs 44 crore 73 lakh 73 thousand, along with demands for imprisonment under the Prevention of Corruption Act.

Bhoj Bikram Thapa, the senior division engineer and then deputy executive director of the committee, is also implicated in the corruption case, though specific charges have not been detailed.

Shiva Kumar Sharma, then deputy team leader of the consulting company Estina Bates JV, is charged Rs 48 crore 36 lakh. The Engineers and Bates Consulting Services face charges amounting to Rs 87 crore 58 lakh 83 thousand.

The construction company C.M.C. di Ravenna, which had the project contract, is claimed to owe Rs 65 crore 14 lakh 57 thousand.

The Melamchi water project in Helambu Rural Municipality, Sindhupalchok, is currently closed. The water is brought to Kathmandu only during winter, and the tunnel is closed in the monsoon. Reconstruction of the project’s water delivery area is in its final stages following damage from the last landslide in Bhremathang.