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 parties involved in the construction of the Pokhara Regional International Airport, citing serious Pokhara Airport financial irregularities. The report also highlights that mismanagement and lack of accountability led to significant public losses.

Investigation Uncovers Tax Exemption Misconduct
The subcommittee, coordinated by Rastriya Prajatantra Party (RPP) Chairman and MP Rajendra Lingden, submitted its report after a thorough investigation. The findings revealed that a new Implementation Agreement was signed. This agreement bypassed the original contract and allowed unjustified tax exemptions, causing financial mismanagement.

Moreover, Nepal’s Civil Aviation Authority, the Ministry of Culture, Tourism, and Civil Aviation, and the Ministry of Finance were all implicated. These irregularities resulted in financial mismanagement totaling Rs 2.22 billion. In addition, the Office of the Auditor General’s 60th report had already flagged this amount as pending recovery. This highlights longstanding concerns about oversight.

Ministry of Finance Fails to Justify Tax Exemptions
Despite repeated inquiries, the Ministry of Finance did not provide any justification for the exemptions. Consequently, the PAC subcommittee stressed that this lack of transparency undermines accountability and weakens public trust in government projects.

Immediate Recovery Urged
The PAC has called for urgent recovery of the misappropriated funds. Furthermore, the recommendation seeks to address Pokhara Airport financial irregularities, strengthen oversight of public funds, and ensure stricter compliance in future large-scale infrastructure projects.

For more details on government audits and Nepal’s aviation projects, see our coverage of the Civil Aviation Authority of Nepal and Public Accounts Committee reports