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Special Court seeks details of China loan and repayments in Pokhara airport corruption case

Pokhara Regional International Airport Pokhara Airport - Fly Dubai
File Photo: Pokhara Regional International Airport

Kathmandu, November 6

The Special Court has ordered the government to submit details of the loan taken from China Eximbank, including the repayment process and instalment records.

A bench comprising Special Court Chairperson Basudev Acharya and members Dilliratna Shrestha and Umesh Koirala ordered the Public Debt Management Office to provide complete details of the loan and its repayment process.

The court also directed the Civil Aviation Authority of Nepal (CAAN) to submit details of bills and receipts claimed by Chinese construction company CAMC for payment, the amounts already paid and outstanding payments.

In Baishak, the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption case against 14 individuals, including former Finance Minister Gyanendra Bahadur Karki, accusing them of granting tax exemptions to the contractor during the construction of Pokhara International Airport.

The CIAA had sought recovery of Rs 3.62 billion in damages from the accused.

The anti-graft body claimed that although the original agreement required the contractor to pay taxes, customs duties and other charges, a separate implementation agreement was subsequently made granting exemptions from all such payments. It argued that the arrangement was made with malicious intent.

The CIAA also alleged that the Chinese company CAMC was given undue double benefits by ensuring that taxes, customs duties and other charges were not deposited into the state treasury.

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