The Nepalese government has found that "violations and corruption" by officials and legislators have led to the Chinese state-owned contractor for the new Pokhara International Airport ignoring its obligations and collecting fees for work never completed.
According to The New York Times, a 36-page report published on the 17th by an 11-member parliamentary committee revealed that the investigation into Pokhara International Airport found that China National Machinery Industry Corporation, a subsidiary of CAMC Engineering, failed to pay taxes, did not complete the project according to specifications, and used substandard building materials, all due to corruption and lack of oversight.
Pokhara, a well-known tourist destination, is the second-largest city in Nepal. The Pokhara International Airport was constructed with a 20-year loan from the Export-Import Bank of China, but its international passenger traffic is far below expectations. China has lauded the Pokhara Airport as a flagship project of the Belt and Road Initiative.
The report found that despite the contract requiring CAMC Engineering to complete excavation, backfilling, and the laying of runway gravel and other crucial works, the company failed to complete these tasks.
The report also found that the company received payments for unfinished projects, including fuel supply facilities and heating, ventilation, and air conditioning systems.
The report indicated that although the contract required CAMC Engineering to pay customs duties and value-added tax for equipment imported from China, the Nepalese authorities waived taxes amounting to $16 million (RM70.56 million) for CAMC Engineering.
The contract stipulated the construction of two runways for takeoffs and landings. However, the report stated that due to the second runway being closed for safety reasons, the airport actually only has one operational runway.
The head of the investigation said: "This is a massive corruption case, and the corrupt bureaucrats and politicians involved in this scam must be punished."
The parliamentary committee has called for the suspension of senior officials of the Civil Aviation Authority, including the current director, on the grounds that they might destroy documents related to the airport's construction.