Nepal Electricity Authority Transformer Scandal Case Set for Hearing After 8 Years

The hearing for the substandard transformer scandal case, which tarnished the reputation of the Nepal Electricity Authority (NEA), is finally taking place after eight years. This case has been listed under the 'to be heard' category in the bench of Supreme Court Justices Abdul Aziz Musalman and Meghraj Pokharel since Bhadra 12. The hearing was postponed following a fire at the Supreme Court on Bhadra 24, and it has now been scheduled for today, after Bhadra 23.

The Commission for the Investigation of Abuse of Authority (CIAA) filed the case in the Special Court in Falgun, 2070 BS. The CIAA filed the case in two phases at that time. Initially, the CIAA filed a corruption case against 18 individuals, including the then Executive Director Dr. Jivendra Jha and then General Managers Rameshwor Yadav and Yugal Kishore Sah.

In the second phase, the CIAA filed a case against foreign agents and other NEA employees. The CIAA claimed that the state incurred a loss of approximately NPR 500 million due to the import of substandard transformers and demanded the recovery of that amount.

Following irregularities found in the transformer procurement, the CIAA registered four cases against 60 individuals, including NEA employees and suppliers, at the Special Court on Bhadra 9 and 28, 2070 BS.

In its verdict on Chaitra 17, 2073 BS, the Special Court convicted 25 individuals, including high-ranking NEA leadership and foreigners, ordering the recovery of NPR 460 million from them. In the 'much-talked-about transformer scandal' of the Nepal Electricity Authority, 20 employees, including two former Chief Executive Directors, were found guilty.

Similarly, five individuals from the Chinese and Thai companies supplying the transformers were also convicted. The Special Court ordered the recovery of NPR 463 million in fines from those found guilty. The CIAA initiated an investigation after transformers imported from India, China, and Thailand began exploding frequently.

Who were convicted?

The Special Court sentenced then Executive Director Yadav to a fine of NPR 135,000 and imprisonment for 3 years and 5 months, while another Executive Director Jha was sentenced to a fine of NPR 80,000 and imprisonment for 1 year and 2 months. The bench of Judges Mohanramana Bhattarai, Narendra Kumar Shiwakoti, and Maheshkumar Pudasaini ordered the recovery of the principal amount along with fines.

The Special Court sentenced Executive Director Yadav to 1 year and 6 months imprisonment and a fine of NPR 50,000 in the first case, 4 months imprisonment and a fine of NPR 15,000 in the second case, 7 months imprisonment and a fine of NPR 30,000 in the third case, and 1 year imprisonment and a fine of NPR 40,000 in the fourth case.

Then Executive Director Jha was sentenced to 6 months imprisonment and a fine of NPR 25,000 in the first case, 4 months imprisonment and a fine of NPR 40,000 in the second case, and 4 months imprisonment and a fine of NPR 15,000 in the third case. The court acquitted him in one case.

Likewise, the Special Court sentenced Yugal Kishore Sah to a fine of NPR 95,000 and imprisonment for 1 year and 7 months, Kailash Prasad Atal to a fine of NPR 30,000 and imprisonment for 8 months, and Chiranjivi Sharma Paudel to imprisonment for 4 months and a fine of NPR 15,000.

Other employees found guilty in the transformer scandal included Madanraj Chapagain, Prajwal Pandey, Sendhu Yadav, Bharatkumar Sah, Surendra Paneru, Surendraraj Joshi, Shekhar Kumar Dutt, Manoj Baral, Bidur Poudel, Surajprasad Sah, Rambijul Mandal, Binodkumar Swarnakar, Nimeshkumar Pokhrel, Asteratna Shakya, and Tripurariprasad Singh. The Special Court sentenced each of them to 3 months imprisonment and a fine of NPR 15,000.

The Special Court also convicted five individuals from the Chinese and Thai companies supplying the transformers. The Special Court sentenced Li Dao Jiu to a fine of NPR 214,502,374, Hu Zheng Jing to 2 years imprisonment, and Hu Ji Qu to 1 year imprisonment. Furthermore, other foreigners, Hu Yong, were sentenced to 1 year imprisonment and a fine of NPR 58,779,603, and Ou Yang was fined NPR 58,779,603.

The Special Court also convicted the supplier Prepatal from Thailand, sentencing them to a fine of NPR 129,841,933.

The Special Court acquitted 21 NEA employees. The acquitted NEA employees included Tikaram Bisi, Haribahadur Pal, Suresh Kumar Katuwal, Sushilprasad Khanal, Narayanprasad Chaudhary, Saroj Shrestha, Maheshprasad Acharya, Dev Sharma Poudel, Krishnabahadur Thapa, Krishnabahadur KC, Bharat Rupakheti, Pramod Rijal, Arjun Kumar Chauhan, Haribahadur Gasi, Bhavibikram Thapa, Maheshkumar Karki, Binodkumar Manandhar, and Dilliraman Dahal.

Likewise, the Special Court acquitted Nepali agents Rajanbahadur Bhatta and Amar Rajbhandari. The court also acquitted supplier Jui Tan and Nepali national Maninath Dhakal.