A parliamentary subcommittee investigating the construction of the Pokhara Regional International Airport has concluded that irregularities and corruption worth Rs 10bn (approx) occurred during the construction phase. The subcommittee, formed under the Public Accounts Committee (PAC) and led by Rastriya Prajatantra Party (RPP) President Rajendra Lingden, has prepared a draft report highlighting discrepancies under 11 different categories. The draft has been signed by several members and circulated to other lawmakers for review.
According to reports, the irregularities in the airport construction could be among the largest corruption scandals in Nepal’s history. The initial project cost, estimated at Rs 14bn, was suspiciously inflated to Rs 22bn. The report points to widespread malpractice across nearly all areas of the project, raising concerns about both quality and compliance. It further states that tax exemptions were provided in violation of the original contract, leading to significant revenue losses. A new implementation agreement was signed to repeatedly grant a total of Rs 2.22bn in tax waivers, which the report describes as deliberate financial misconduct.
Taking to Facebook, Lingden posted that the subcommittee also noted that irregularities began as early as the bidding process and continued throughout the construction phase, both financially and technically. It accuses that a three-member task force was strategically formed to legitimize cost escalations, bypassing public procurement laws and established norms. In addition, the report mentions that the Ministry of Finance failed to provide some critical information, implying that the actual scale of corruption could be even higher.
Based on these findings, the subcommittee has proposed that the Commission for the Investigation of Abuse of Authority (CIAA) be instructed to investigate and take legal action against those involved. It also recommends that the government conduct a comprehensive legal and technical review of the project and ensure that the airport becomes fully operational and commercially viable. The subcommittee expressed its appreciation to all involved members and secretariat staff for their active participation in the investigation process.
