House panel seeks Airbus deal papers

Minister for Tourism and Civil Aviation Rabindra Adhikari has directed the Nepal Airlines Corporation to present all documents related to the purchase of two wide-body aircraft. House panel seeks Airbus deal papers

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Sanjeeb Phuyal

Published at : November 24, 2018

Updated at : November 24, 2018 14:20

Kathmandu

Minister for Tourism and Civil Aviation Rabindra Adhikari has directed the Nepal Airlines Corporation to present all documents related to the purchase of two wide-body aircraft.

In a meeting of the International Relations Committee of Parliament on Friday, the minister pledged to present the documents pertaining to the aircraft purchase after lawmakers raised questions over transparency of the deal. The national flag carrier had acquired two Airbus A330-200 planes from the US-based AAR Corp four months ago. But the deal has landed in controversy after it was revealed that the NAC had not followed due procedures while purchasing those aircraft.

Moreover, it is not clear whether the NAC had bought the two planes or leased them.

While Civil Aviation Secretary Krishna Devkota has claimed that the NAC had indeed purchased the two aircraft, Nepal Communist Party lawmaker Bhim Rawal and Nepali Congress lawmaker Prakash Man Singh have demanded that the ministry furnish all documents concerning their procurement.

“One gets receipt even after paying a minor tax. But it’s strange that we haven’t received a clear-cut answer about the purchase of these planes that are worth billions of rupees,” Rawal said.

NAC Managing Director Sugat Ratnat Kansakar admitted that the aircraft were bought through a mediator company and assured to submit all the related documents within a few days.

When former Prime Minister Madhav Kumar Nepal inquired if the NAC had business plans, Kansakar said the NAC has a 300-page plan. NC lawmaker Sujata Koirala asked why the newly bought aircraft are grounded.

Earlier in the meeting of Parliamentary Public Accounts Committee on Tuesday, Nepali Congress MP Minendra Rijal had called for a parliamentary inquiry into the wide-body aircraft purchase deal.

The NAC took delivery of the two planes in June and July. The aircraft were purchased for $209.6 million, the largest ever aircraft purchase deal in Nepal’s aviation history, by taking loan from Employees Provident Fund and Citizens Investment Trust. Meanwhile, the committee has formed a panel to investigate into the alleged irregularities in the procurement of two wide-body aircraft.

Sanjeeb Phuyal
Sanjeeb Phuyal is the online editor for The Kathmandu Post. He oversees breaking news reports on the web and produces content for The Post's digital platforms.