Following initial investigations, CIAA - the constitutional anti-graft body - has directed NOC to totally halt the process of buying the land. CIAA has also summoned NOC board chairman and commerce secretary Purushottam Ojha, NOC executive director Digambar Jha and six other senior government employees involved in the land transaction to furnish explanations. [break]
The NOC board had decided to purchase 70 ropani of private land for expanding its oil storage depot at Thankot, the main entry point into the capital, one and half months back.
According CIAA investigations, NOC was all set to pay Rs 5 million per ropani, which is over three times the prevailing market price at the time. The market price of the land is Rs 1.5 million per ropani (508.74 square meters). CIAA preliminary investigations show that at least Rs 245 million in total would have been embezzled had the purchase plan moved forward.
NOC claimed that the decision to purchase the land was taken on the basis of the Land Acquisition Act. However, CIAA argued that not only can´t NOC exercise the Act but it has not properly followed procedures as per the Act.
“The NOC board cannot exercise that Act,” Acting CIAA Chief Commissioner Lalit Bahadur Limbu told myrepublica.com, adding that only the cabinet can do so. That is why the decision is highly objectionable.”
CIAA has initiated in-depth investigations into NOC´s decision and taken all the related documents under its control. NOC executive director Jha, however, expressed dissatisfaction over the CIAA move to stall the process but quietly accepted that due process according to the Act has not been followed. “It will take more than a year if we follow every step as per the Act,” Jha said. He added, “NOC is now in profit and thus has financial capability to purchase the land.”
Jha also disclosed that the process of buying the land was initiated some five years ago. He argued that as NOC was established as per the Company Act, it has every right to purchase land.
According to Jha, the decision to pay Rs 5 million per ropani was made by a Land Assessment Committee headed by the chief district officer of Kathmandu.
“There is no land which costs less than Rs 200,000 per anna (31.8 square meters) around Kathmandu Valley, Jha said, adding that CIAA´s charge of price variation is wrong.
Justifying the need to purchase the land, Jha said expanding the storage capacity for both petrol and diesel as recommended by various commissions in the past has become quite urgent. The present petrol storage capacity of the NOC depot is 1,870 kiloliters. The daily minimum consumption is 300 kiloliters. The present storage capacity for diesel is 8,400 kiloliters whereas daily consumption is 450 kiloliters.
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