KATHMANDU, April 24: Kathmandu Metropolitan City (KMC) Mayor Balen Shah has claimed that there was policy-level corruption involved in the approval process of the Kathmandu Tower project.
On Thursday, he took to social media to disclose that the case could result in financial losses of over Rs 1 billion for the metropolis, while benefiting the contractor by billions.
According to Mayor Shah, back in 2073 BS, the then leadership of the metropolitan city approved a 12-storey structure under an agreement that provided minimal financial benefit to the City.
According to the agreement, the KMC was set to receive only Rs 9.833 million annually for the first four years and Rs 390 million by the 30th year.
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Mayor Shah claimed that increasing the building from 12 to 19 floors - adding 7 additional floors - would create 128,000 square feet of extra space, which could potentially generate over Rs 230 million in annual rental income.
“In 30 years, the rent per square foot will reach Rs 670, which means the additional 7 floors alone will potentially generate over Rs 1 billion in revenue per annum,” Mayor Shah said, “But according to the agreement, the metropolis only receives Rs 30 million, benefitting the contractor in billions and causing the metropolis losses worth billions of rupees.”
Shah also stated that there have been numerous irregularities and illegal activities in the construction of the building. According to him, the Kathmandu Valley Development Authority (KVDA) had granted permission in 2072 BS for a structure not exceeding 12 floors.
However, the design for a 19-floor building was approved without consulting the KVDA or conducting an Environmental Impact Assessment (EIA). “As a structural engineer, I observed that more than 70 percent of the columns fail in the design of a 19-storey building as per NBC 105:2020 standards,” he said.
He accused Chief Administrative Officer Saroj Guragain of making a serious error in the building approval process. “Without using the official EBPS system and without informing the department head, Guragain approved the building design on just his second day in office,” said Shah, “This is a clear case of policy-level corruption.”
He also expressed the suspicion that Guragain might have been sent with a special 'mandate' by the government. Mayor Shah stated that he is ready to cooperate with the concerned authorities for an investigation into this matter.
“No building design has been approved through the official system of the metropolitan city so far; we do not recognize this document,” he said, “The approval for the Hilton building was also done by Guragain on the same day, and that is under investigation as well.”
He called the Metropolis residents to report any irregularities, assuring that their identity would not be identified. On the occasion of Democracy Day, Shah expressed his wishes for a corruption-free society.
