Clarifications sought from NOC chief Khadka

KATHMANDU, Nov 28: A meeting of the board of directors (BOD) of Nepal Oil Corporation (NOC) on Friday has sought clarifications from the corporation's managing director, Gopal Bahadur Khadka, concerning various allegations against him.

The NOC board chaired by Secretary at the Ministry of Commerce and Supply (MoCS) Naindra Prasad Upadhaya, sought written clarifications within a week from the NOC chief concerning alleged NOC involvement in organized black-marketeering in petroleum products and other anomalies that Khadka has been accused of.

Speaking to Republica, a NOC board member requesting anonymity said that clarifications have been sought as Khada has time and again been accused of involving himself in activities that worsen the current fuel crisis instead of controlling the situation. "Clarifications have been sought from Khadka over every anomaly that he has been accused of," the board member said.

At a time when the country is reeling under acute shortages of petroleum products after India obstructed regular fuel supplies, Khadka has been accused of taking hasty and unlawful decisions. He has also been accused of selling available stocks of petroleum products at inflated rates to various businessmen and institutions.

Khadka was also accused of awarding a petroleum supply contract to Birat Petroleum Company in breach of the regulations. Khadka had issued Rs 200 million to the private firm to open a letter of credit (LC) for importing petroleum products to Nepal. Khadka had given the contract to Birat and agreed to purchase petroleum products imported by the company at highly inflated rates.

Similarly, Khadka was also found issuing Rs 500 million to another company, Petrolimex Nepal, to open an LC for importing Aviation Turbine Fuel (ATF), but without any performance guarantee. As a result of this lapse, NOC is on the verge of losing the amount as Petrolimex Nepal has already failed to supply ATF within the designated time period. Petrolimex Nepal was to have supplied the ATF for 15 days regularly after landing the contract. However, the company has not yet supplied a drop of ATF although it has been more than a month since the contract was finalized.

Khadka for his part has been publicly defending his actions. He has been saying that petroleum products cannot be supplied to Nepal under the existing legal provisions.