KATHMANDU, Dec 2: The Commission for the Investigation of Abuse of Authority (CIAA) has appealed to the Supreme Court, demanding that all individuals acquitted in the controversial wide-body aircraft procurement case be held accountable.
Arguing that the Special Court’s verdict was flawed, the CIAA has asked the Supreme Court to annul the decision and impose penalties on those cleared of charges. The anti-graft body maintains that the ruling failed to address key elements of the case.
The Special Court in December 2024 had convicted 10 out of the 32 accused, acquitting the rest. Those found guilty included Nepal Airlines Corporation (NAC) Board Chair and Tourism Secretary Shankar Prasad Adhikari, NAC Managing Director Sugat Ratna Kansakar, and board members Shishir Kumar Dhungana and Buddhi Sagar Lamichhane. Companies involved in the aircraft supply process and their representatives were also convicted.
However, the court acquitted former Tourism Minister Jivan Bahadur Shahi, most members of the NAC board, and 14 NAC employees. The verdict stated that their involvement could not be sufficiently established, no malicious intent was evident, and their participation was limited to preliminary procedural roles — grounds the court deemed insufficient for conviction.
The anti-graft body argues that former Tourism Minister Jivan Bahadur Shahi and others colluded with the supplier to deliberately manipulate the procurement process and cause large-scale financial irregularities. The CIAA has sought a full review of the judgment.
According to the CIAA, the accused, in coordination with the supplier company, made unnecessary additional payments amounting to USD 678 million under the pretext of “price escalation.”
The commission also alleges that although the aircraft price had been negotiated based on a maximum takeoff weight of 242 tons, the delivered aircraft was certified at 230 tons. The 12-ton discrepancy should have reduced the price, but no deduction was made, causing further financial loss to Nepal Airlines Corporation (NAC).
The CIAA concluded that such dubious payments resulted in a loss of USD 13.38 million (NPR 1.47 billion) to the national flag carrier.
CIAA spokesperson Rajendra Kumar Paudel said in a press statement that the appeal demands the annulment of the Special Court’s partial decision and calls for full enforcement of penalties against all defendants.