Investigations into financial irregularities at Pokhara and Bhairahawa airports stalled

Kathmandu, September 24 — As investigations into financial irregularities surrounding the construction of Pokhara and Bhairahawa Airports progress, the sub-committee under the Public Accounts Committee of Parliament has hesitated to finalize its report.

The House of Representatives established two distinct sub-committees to examine and report on the alleged irregularities at the two airports.

For the Gautam Buddha International Airport in Bhairahawa, an eight-member sub-committee was led by UML Secretary and MP Yogesh Bhattarai, which included MPs Amresh Kumar Singh, Manish Jha, Achyut Prasad Mainali, Bikram Pandey, Shyam Kumar Ghimire, Manju Khand, and Saraj Ahmed Farooqui.

Meanwhile, another sub-committee tasked with investigating Pokhara International Airport was led by RPP Chairman and MP Rajendra Lingden, with members Arjun Narsingh KC, Gokul Prasad Baskota, Janardan Sharma, Prem Bahadur Ale, Tara Lama, Tejulal Chaudhary, Deepak Giri, Dev Prasad Timilsina, Ramakrishna Yadav, Rukmani Rana, and Lekhnath Dahal.

Members of the sub-committees expressed uncertainty about submitting their findings, noting significant financial manipulation linked to the airport construction decisions. Their investigations revealed connections involving key figures, including current Prime Minister KP Sharma Oli and Prem Rai, head of Commission for Investigation of Abuse of Authority (CIAA) which further complicated their task.

Formed in June with a deadline for reporting set within a month, both sub-committees have yet to deliver their findings, even after two months. Chairman of the Audit Committee, Rishikesh Pokharel, stated, "A sub-committee was created to complete the study and submit a report. Perhaps they are still in the process of gathering information, which is why the report has not been submitted yet," he told Ratopati.

 Involvement in irregularities in Pokhara Airport construction

A member of the study sub-committee revealed that the construction of Pokhara Airport began with a loan of NPR 22 billion from China, with an initial completion target for the fiscal year 2020-21. This deadline was later extended by two years. The 60th annual report from the Auditor General noted that the contractor received a discount.

The 61st annual report confirmed that the construction cost reached 25 billion 34 million rupees. During this process, the then tourism secretary, Rai, facilitated land purchases. A sub-committee member stated, “Rai, the current head of the CIAA, has also signed off on land acquisitions for the airport. We won’t discuss further details right now,” as reported to Ratopati.

The investigation uncovered over 2 billion rupees in tax exemptions granted without a Council of Ministers meeting, which is deemed irregular. The report mentions former Prime Ministers Sushil Koirala, Dr. Baburam Bhattarai, Sher Bahadur Deuba, and others, including Pushpa Kamal Dahal and Jhalanath Khanal, as potentially involved in these irregularities.

The study raised concerns regarding whether Pokhara can genuinely function as an international airport, as one member noted it might not accommodate aircraft larger than smaller planes. Another member pointed out that the Detailed Project Report (DPR) lacked a proper business plan and questioned the rationale behind tax exemptions and the deforestation of 40 meters of land.

The sub-committee examined the master plan, commercial plans, financial irregularities, and the future operational potential of the airport. They also consulted with the Gandaki Province Public Accounts Committee, discussing various technical aspects, including the airport’s construction height and issues related to sewage and landing difficulties.

Chairman Sudhir Paudel mentioned the need for further discussions with technicians, acknowledging that preliminary observations indicated potential weaknesses.

Even as the sub-committee prepares a report, a member expressed concerns about its public release, calling the situation "complicated."

The regional international airport was constructed with assistance from the Chinese government, and a complaint has been lodged with the CIAA regarding alleged irregularities, with investigations into suspected corruption exceeding 2 billion rupees.

The construction contract was signed on June 8, 2071, but work did not commence until May 22, 2014, after an agreement with a Chinese bank. The airport was inaugurated on January 1, 2023, but is yet to operate at full capacity.

Unnecessary land purchase for Bhairahawa Airport

The sub-committee recently conducted an on-site study of Gautam Buddha International Airport in Rupandehi. During the visit, a member noted that, unlike Pokhara Airport, Bhairahawa Airport does not appear to have significant complex issues.

The sub-committee is drafting a report to explain why Bhairahawa Airport is not operating at full capacity. In their preliminary findings, they questioned the necessity of purchasing additional land after the airport's construction.

The government has invested approximately 60 billion rupees in building both Gautam Buddha and Pokhara International Airports. Bhairahawa Airport began operations on May 16, 2022, initially hosting regular flights from Kuwait's Jazeera Airways, but those flights are no longer consistent.

A member of the sub-committee expressed concerns, stating, "There was no need to buy more land. We believe the purchase was made in collusion. Additionally, we’ve investigated issues such as the inability to cover operational costs and India's reluctance to grant flight routes. If there are international flights, why are our flights being redirected to Kolkata and Delhi? This will be addressed in our report."

Another member emphasized, "Our report states that domestic flights alone cannot cover the airport's expenses."

According to the 61st annual report of the Auditor General, Gautam Buddha Airport was completed at a cost of 35.66 billion rupees.