Supreme Court Orders Investigation into Loss-Making Chinese Aircraft Purchase

Kathmandu. A public loss of billions of rupees to the state due to the Chinese aircraft purchased by Nepal Airlines Corporation has reached the Supreme Court. An activist, Bheshraj Luintel, has approached the Supreme Court demanding an investigation into the truth of this matter and bringing the guilty to justice, stating that the Chinese aircraft purchase case has not been investigated for a decade and a half. In the writ filed by Luintel, the bench of Supreme Court Justice Balkrishna Dhakal has issued an order in the name of the government to present the reason for the Chinese aircraft purchase not being investigated so far. This dispute will now be heard by the Supreme Court on an expedited basis. The Prime Minister's Office and Council of Ministers, the Commission for Investigation of Abuse of Authority, the Ministry of Culture, Tourism and Civil Aviation, the Ministry of Finance, and Nepal Airlines Corporation have been made defendants. The written response from the Prime Minister's Office and the Ministry of Civil Aviation will be important in this matter. The case of purchasing 6 Chinese aircraft dates back to 2068 BS. The Chinese aircraft purchase case, which burdened Nepal Airlines Corporation with a debt of 47 billion, has not been investigated even after a decade and a half. Nepal Airlines Corporation sent a proposal to purchase aircraft to the Ministry of Finance in August 2068 BS, stating that there was a shortage of aircraft for domestic flights. When the then Minister of Tourism and Civil Aviation, Lokendra Bist, insisted on buying the aircraft at any cost, a committee was formed under the leadership of Ganesh Thakur, Deputy General Manager of the Corporation. The committee included Kiran Pant, Deputy Director of the Corporation's Trade Department, Captain Vijay Lama, Captain Shrawan Rizal, and Santosh Kumar Khati, Deputy Director of the Engineering Department. On November 9, 2068 BS, the committee submitted a report stating that the Chinese aircraft MA-60 and Y-12E would be suitable, calling them 'Nepal-suitable' even though they were unsuitable for Nepal's geography. The Chinese aircraft, brought according to the committee's opinion, have been parked at one end of Tribhuvan International Airport for the past decade and a half, exposed to sun and rain. That aircraft is a model of Nepal's political and administrative policy corruption. Nepal had brought the aircraft by borrowing 3.73 billion rupees. Within five years of starting to fly the aircraft, the corporation incurred a loss of 1.90 billion rupees, after which it was parked in a corner of the airport. Despite being recommended as an aircraft suitable for Nepal's geography, the government is now struggling to repay the loan for that aircraft. The case has reached the Supreme Court after the investigation into the Chinese aircraft purchase, considered a major link in burdening Nepal Airlines Corporation with a debt of 47 billion, has not been conducted even after a decade and a half since its inception. Based on that report, after bringing the aircraft, a second committee was formed under the leadership of Dipendra Bahadur Chhetri. The Chhetri-led recent study committee (2080 BS) clearly states, 'The main reason for this failure is the recommendation made haphazardly, without any adequate homework and study.' However, the technical team that made that wrong recommendation, which crippled the corporation, is still safe today. Prior consent from the Ministry of Finance is mandatory before taking any foreign loan. However, the then Minister of Tourism, Lokendra Bist, made a memorandum of understanding with the Chinese company AVIC International without the theoretical consent of the Ministry of Finance. Although the employees of the Ministry of Finance tried to protest this, the employees were forced to move forward with the aircraft purchase process due to the 'political pressure' of the then Prime Minister Baburam Bhattarai and Finance Minister Barsaman Pun. With the insistence of then Prime Minister Baburam Bhattarai and Finance Minister Pun, the Ministry of Finance sent a formal letter to the Chinese government in December 2068 BS offering to provide aircraft on grant or loan, and the aircraft purchase process moved forward. Employees of the Ministry of Finance had expressed the opinion that the profit and loss of purchasing aircraft should be analyzed. Amidst the controversy, in 2069 BS, the Bhattarai government issued a warning that officials of the concerned ministry would be punished if the aircraft were not brought within six months. However, it was not specified that Chinese aircraft were to be purchased. In November 2079 BS, the corporation had made a commercial agreement for purchase and sale with AVIC International. According to the agreement, the price of one MA-60 and three Y-12E aircraft was fixed at 218.79585 million yuan. Although the Khilraj Regmi-led government made the final agreement in November 2070 BS, its foundation was laid during Bhattarai's tenure. The chain of high officials of the corporation, ministers, and prime ministers is entangled in this case. The Commission for Investigation of Abuse of Authority and other regulatory bodies remain silent on this 'affair' that has ruined the country's treasury and the reputation of the national flag carrier.