Nepal Charges Chinese Construction Firm Over Airport Corruption Scandal

Background

The development of the new international airport in Pokhara has been hailed as a pivotal step for Nepal’s tourism and regional connectivity. The project, valued at several hundred million dollars, was awarded to a state‑owned Chinese construction company in partnership with Nepali officials.

Investigation Findings

According to the Commission for the Investigation of Abuse of Authority (CIAA), the Chinese firm and certain Nepali officials colluded to artificially inflate the construction costs. The watchdog’s report alleges that the contract price was raised by more than 30 % beyond the original estimate, with the excess funds being funneled into undisclosed accounts.

Legal Action

The CIAA has formally charged the Chinese company, identified as China State Construction Engineering Corporation (CSCEC), along with three senior Nepali officials. The charges include bribery, fraud, and violation of procurement regulations. Prosecutors say the case will be tried under Nepal’s anti‑corruption statutes, and the defendants could face substantial fines and imprisonment.

Reactions

“This is a clear breach of public trust and a blatant attempt to profit from a project meant to serve the nation,” said CIAA Chairman Mr. Rajendra Prasad. The Chinese embassy in Kathmandu expressed “deep regret” over the allegations and pledged to cooperate with Nepalese authorities.

Implications for the Airport Project

While the investigation is ongoing, the Pokhara airport’s construction timeline may be delayed. The Ministry of Physical Infrastructure and Transport has announced a review of all contracts linked to the project to ensure transparency and prevent further irregularities.