AVIATION
Nepal Airlines Airbus A330 ‘Wide Body’ purchase under reinvestigation
The investigation, ongoing for five years, faces challenges in summoning officials for statements.
Nepal’s main anti-corruption organization CIAA is restarting its investigation into the 2017 Airbus deal of the national flag carrier Nepal Airlines. The deal involved the purchase of two Airbus A330s for USD 209.6 million, the largest aviation deal in Nepal’s history. The Commission for the Investigation of Abuse of Authority (CIAA) has called representatives from five international agencies to provide statements related to the purchase.
The CIAA has issued repeated summonses to individuals involved, such as Deepak Sharma from International Supply Chain, AAR Corp in the United States; Christian Nuehlen from German Aviation Capital in Germany and Singapore, and Hi Fly X Ireland Limited in Ireland; and Oleg Calistru, finance director of German Aviation Capital in Germany.
The notice states that these individuals must appear within 15 days at the CIAA’s office for the investigation. Failure to comply may result in legal action.
The investigation, ongoing for five years, faces challenges in summoning officials for statements. The process was delayed, partly due to difficulties in obtaining cost details from Airbus. Without knowing the cost breakdown, it’s challenging to assess any irregularities in the purchase.
In January 2019, the parliamentary Public Accounts Committee found that the procurement of the aircraft caused a loss of NPR. 4.35 billion to the Government. The committee raised concerns about a special purpose vehicle, Hi Fly X Ireland, formed by Nepal Airlines and Hi Fly Portugal for the procurement process. There were suspicions of financial irregularities, and the committee questioned the motive behind dealing with a company in Ireland, known for tax avoidance.
The parliamentary committee implicated officials, including the then tourism minister, Rabindra Adhikari, who died in a helicopter crash in February 2019. The government had also initiated its probe, but its term ended before it could start the work. The Office of Auditor General’s annual report raised questions about the procedure and pricing of the aircraft, suggesting deviations from the established rules.
The CIAA’s latest summons indicate a continuation of efforts to investigate corruption allegations in the Airbus deal, which has been mired in controversy and legal complexities.
(Info extracted from post of Sangam Prasain from TKP)