Tourism Info Nepal

Special Court Convicts Four in Wide-Body Aircraft Corruption Case

Special Court Convicts Four in Wide-Body Aircraft Corruption Case

The Special Court has concluded that corruption occurred in the procurement of two wide-body aircraft for Nepal Airlines Corporation, convicting four Nepali officials. The decision was made by a bench comprising Chairperson Tek Narayan Kunwar and members Tej Narayan Singh Rai and Ritendra Thapa.

Those convicted include Shankar Prasad Adhikari, former Chairperson and Tourism Secretary; Sugat Ratna Kansakar, former General Manager of Nepal Airlines; and Buddhi Sagar Lamichhane and Shishir Dhungana, both former Joint Secretaries of the corporation’s board.

The Commission for the Investigation of Abuse of Authority (CIAA) filed corruption charges against 32 individuals on March 22, 2080 (Nepali calendar), alleging financial misconduct in the aircraft procurement process. The CIAA claimed that the government suffered a loss of NPR 1.47 billion due to irregularities.

The charges involved a mix of Nepal Airlines board members, corporate staff, and international representatives. The CIAA also demanded compensation of NPR 1.47 billion from all 32 accused, including three foreign nationals and five companies alleged to have colluded in the deal.

While the court convicted four individuals, others, including former Tourism Minister Jeevan Bahadur Shahi, were acquitted. Shahi had faced accusations during his tenure, leading to his suspension. However, the court found insufficient evidence to hold him accountable, clearing his name and restoring his political credibility.

Nepal Airlines Corporation initiated the procurement process to expand its fleet, initially selecting the American company AAR International. However, during the Memorandum of Understanding (MoU) signing, additional companies—German Aviation Capital and HiFly Aeros Portugal—were introduced, forming a consortium. This consortium later established HiFly X in Ireland, which became the contractual partner for the aircraft purchase.

The CIAA alleged that the consortium formation and the subsequent purchase agreement were manipulated with ill intent, resulting in financial losses.

List of Convicted and Acquitted Individuals
Convicted:
Shankar Prasad Adhikari (Former Chairperson, Nepal Airlines Board)
Sugat Ratna Kansakar (Former General Manager)
Buddhi Sagar Lamichhane (Board Member)
Shishir Dhungana (Board Member)

Acquitted:
Jeevan Bahadur Shahi (Former Tourism Minister)
Several board members, Nepal Airlines staff, and international representatives

The ruling highlights systemic flaws in the procurement process and raises questions about governance in public enterprises. While the court’s decision brings partial closure to the case, it underscores the need for greater accountability and transparency in state-led projects.

This high-profile case remains a significant reference point for addressing corruption in Nepal’s public sector.

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