Wide-Body Aircraft Procurement Scandal: Accused Question Selective Investigation

During hearings at the Special Court regarding the wide-body aircraft procurement scandal, several accused individuals raised concerns over the decision not to prosecute Yubaraj Adhikari, who was involved in the decision-making process. Adhikari has been serving as the Executive Chairman of Nepal Airlines Corporation for the past three years, but during the procurement process eight years ago, he was part of the finance department.

Despite evidence of Adhikari’s involvement in the procurement process, the Commission for the Investigation of Abuse of Authority (CIAA) did not file charges against him. The accused individuals have questioned the impartiality of the investigation, claiming that favorable evidence was manufactured to benefit Adhikari.

Among those raising concerns is Shankar Adhikari, the then Chairman of Nepal Airlines and Secretary of the Ministry of Tourism, along with several employees of the finance department. They highlighted Yubaraj Adhikari’s involvement in key decisions, including negotiations with the AAR Corporation, which resulted in purchasing aircraft with lower capacity (230 tons instead of 242 tons).

The accused also pointed to Adhikari’s role in financial decisions related to loan documentation and payment procedures. Although Adhikari was part of the team responsible for these decisions, others from the same team have been charged, while he has not.

The investigation into the wide-body aircraft procurement scandal gained momentum after Yubaraj Adhikari was appointed as Executive Chairman. Adhikari had communicated with Airbus regarding changes in aircraft capacity and related fees, information that was later provided to the CIAA and used as key evidence. The accused have questioned the legitimacy of this evidence and the decision not to file charges against Adhikari.

In response, Adhikari maintained that he advocated for reducing the price of the aircraft in proportion to its capacity but later followed management’s decision to proceed with full payment. The CIAA, in its defense, stated that there was insufficient evidence to charge Adhikari and that further actions could be taken if new evidence emerged.

The CIAA filed corruption charges against 32 individuals in March 2024, alleging embezzlement of NPR 1.47 billion in the procurement of two wide-body aircraft. The hearings have concluded, and the Special Court has requested closing arguments from both sides, with the next hearing scheduled for September 8, 2024.

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