Parliamentary Subcommittee Recommends Immediate Recovery of Rs 2.22 Billion from Pokhara Airport Project

Kathmandu:  The parliamentary subcommittee under the Public Accounts Committee (PAC) has recommended the immediate recovery of Rs 2.22 billion from the parties involved in the construction of the Pokhara Regional International Airport.

Formed under the coordination of Rastriya Prajatantra Party (RPP) Chairman and MP Rajendra Lingden, the subcommittee submitted its report to the main committee after investigating complaints of irregularities in the project.

Financial Irregularities Found in Tax Exemptions

According to the study, significant financial misconduct occurred during the airport’s construction. The report states that a new Implementation Agreement was signed, bypassing the terms of the original contract, to grant unjustified tax exemptions. As a result, Nepal’s Civil Aviation Authority, the Ministry of Culture, Tourism, and Civil Aviation, and the Ministry of Finance collectively caused financial misconduct amounting to Rs 2.22 billion.

The report further mentions that the Office of the Auditor General’s 60th report had also listed this amount as pending recovery under audit findings.

Ministry of Finance Failed to Justify Tax Exemptions

The subcommittee’s correspondence with the Ministry of Finance seeking justification for the tax exemptions received no response. This lack of transparency has been noted as a critical concern in the report.

The subcommittee has recommended immediate action to recover the misappropriated amount to address the financial irregularities.