KATHMANDU, May 22: The Public Accounts Committee (PAC) of the House of Representatives has been consistently writing to the Commission for the Investigation of Abuse of Authority (CIAA) regarding various issues of financial irregularities. However, the PAC's monitoring has been weak and there has been minimal progress in the implementation of the committee's letters.
Among the issues sent by the PAC to the CIAA, the CIAA has only filed cases regarding the purchase of the Teramocs and Wide Body ships. For many other issues, the CIAA has yet to file cases. The PAC has not been able to conduct strict monitoring on these matters.
Since 2071, the issues related to financial irregularities sent to the CIAA have been left unresolved. Meanwhile, in Wednesday's meeting, the PAC decided to write to the CIAA to investigate and take action regarding the corruption that occurred during the construction of the Pokhara Regional International Airport.
The subcommittee, chaired by Rajendra Lingden of Rastriya Prajatantra Party, had submitted a report stating that at least Rs 10 billion was involved in corruption during the construction of the Pokhara airport. However, after a discussion on the sub committee's report, the PAC decided to conduct a detailed study on the issue to determine whether any irregularities occurred and then forward it to the CIAA for investigation.
Many of the issues sent by the PAC to the CIAA for investigation remain unresolved. Since no cases have yet been filed by the CIAA on several corruption-related matters referred by the PAC, committee member Rajendra Kumar KC has said that the PAC will begin holding meetings for follow-up starting Thursday. “We are now starting discussions on corruption issues and will be urging the CIAA,” he said.
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He stated that it appears the CIAA has not given due importance to the issues sent by the PAC for investigation. The PAC had sent a letter to the CIAA on December 29, 2023, regarding the issuance of shares at premium prices. When the PAC inquired a year later, the CIAA responded on January 19, 2025, stating that the investigation was ongoing.
Similarly, the PAC had sent a letter to the CIAA regarding the matter of handing over the responsibility for the conservation and promotion of the Ramagrama Stupa area to a private company for 99 years without competition. In this case, the CIAA has only mentioned that the investigation is ongoing.
On February 11, 2024, the PAC directed to halt the agreement that was being made with a private company for the development and preservation of the Ramagrama Stupa area, which contains the relics of Lord Gautam Buddha. The PAC concluded that the Lumbini Development Trust was unilaterally planning to hand over the area to a private company without obtaining approval from the Department of Archaeology and the Ministry of Finance, which are the primary authorities responsible for excavation, exploration, conservation, and promotion of such areas.
“The PAC directed that the process for the agreement was not lawful and appeared to cause long-term harm to the state, and therefore, it should be immediately revoked. The PAC also instructed that information regarding this matter should be provided to them. Following this, the committee decided to conduct further investigations and take action by writing a letter to the CIAA.
Similarly, the PAC also sent a letter to the CIAA regarding financial misconduct and irregularities in the construction of the Chameliya Khola Hydropower Station. The CIAA informed the PAC that the study on this matter has been ongoing since December 8, 2014.”
Similarly, the PAC, upon receiving information about corruption in various matters related to the Lumbini Development Trust, sent a letter to the CIAA on April 9, 2024, requesting further investigation. One year later, on April 16, 2024, the CIAA informed the PAC that the investigation was ongoing. However, no updates have been provided to the committee regarding the progress of the investigation since then.
The CIAA has also stated that an investigation is ongoing regarding the alleged Rs 700 million commission deal related to the purchase of the Security Press by then Minister of Communications, Gokul Baskota. A complaint about this issue was filed with the PAC on January 15, 2019. After receiving the complaint, the committee sent a letter to the CIAA to investigate the matter.
In addition to the aforementioned cases, the CIAA filed cases regarding the Teramocs and Widebody aircraft purchases. On March 13, 2020, the PAC sent a letter to the CIAA regarding irregularities in the purchase of the Widebody aircraft. Later, on April 4, 2024, the CIAA filed a corruption case in the Special Court concerning the Widebody purchase by Nepal Airlines Corporation (NAC).
On December 5, 2024, the Special Court acquitted former Tourism Minister and Nepali Congress leader Jiban Bahadur Shahi. In this case, which involved 32 defendants, four employees of the NAC, including the then Managing Director Sugatratan Kansakar, and seven foreign representatives from the vendor company were found guilty, while all others were acquitted.
After the PAC sent a letter for investigation on December 28, 2023, the CIAA filed a case in the Special Court on May 15, 2025, finding 21 individuals, including former Health Minister Mohan Basnet, guilty. The case was related to the procurement process of the Teramocs technology. The CIAA filed charges against 16 individuals, including the former minister, and two companies.
Similarly, the directives given by the PAC to the government are also not being implemented, one of which is related to halting the increase in cement prices. On January 22, 2025, the PAC directed the government to immediately control the price hike in cement.
Recently, the PAC had directed the government to intervene and control the abnormally high cement prices. The committee also instructed the government to conduct a necessary study on cement prices and present a response within seven days. However, as of now, the prices have not decreased.
