The most corrupt corporation Royal Nepal Airline (RNAC).
CIAA prosecutes 10, spares PM
News:
KATHMANDU, May 25 - The Commission for the Investigation of Abuse of Authority (CIAA) today filed cases in the Patan Appellate Court against 10 people, including a former minister and two Lauda Air executives, charging them with corruption in the controversial Lauda Air jet lease deal signed by Royal Nepal Airlines Corporation (RNAC) last year.
Six of the accused, who were produced in the court today, were taken into custody by police and are now lodged at the Hanumandhoka Police Station, the district police headquarters. The hearings are to continue on Monday. Those taken into custody are former RNAC Executive Chairman Hari Bhakta Shrestha and the Board members Tirthalal Shrestha, Gaurinath Sharma, Siddharaj Joshi and RNAC executives U P Upadhyaya (Director of Finance) and Pushkar Wagle (Corporate Department).
Ex-Minister for Civil Aviation Tarani Dutt Chataut, who was in government when the deal was signed, was also charged in the case today. But Chataut failed to show up at the CIAA as ordered him this morning, prompting the commissioners to brand him "absconding." The CIAA has ordered the police to arrest Chataut. Also absconding is R R Upadhyaya, the then director of marketing of RNAC. Chataut could not be reached despite several attempts.
Two Lauda Air executives Andrea Molineri and Omar Lenz, respectively of Lauda Air Italy and Austria, have also been charged in the cases.
In court papers filed today, the CIAA contends that the decision to lease the Lauda Air jet was arrived at with malafide intentions. The lease has led to a direct loss to the national carrier of over Rs 389 million, the CIAA contends. Except the three RNAC executives - the two Upadhyayas and Wagle - other seven would have to compensate the loss, said the Commission.
Meanwhile, in another far-reaching move, the CIAA strongly rebuked Prime Minister Girija Prasad Koirala for the Cabinet?s role in the deal. However, the constitutional anti-corruption body spared the Prime Minister the embarrassment of having to face a court case.
At a press briefing later in the day, CIAA commissioners said they had forwarded a letter to the Prime Minister rebuking his answers to the "closed questions" submitted earlier by the CIAA.
In a strongly-worded statement made available to the reporters, the anti-corruption body said it could not agree with the PM?s reply that stressed on the sanctity and secrecy of the Cabinet decisions. It also refused to agree with the PM?s reply that the Cabinet?s approval of the foreign exchange amounting to 2,010,000 US dollars was a "policy decision", saying it was a decision taken for a business dealing.
The CIAA added that the Cabinet decision neither seemed pre-planned nor applicable to any other deal and so the Commission could initiate action against the Cabinet approval.
Regarding the PM?s reply on oath of secrecy was concerned, the CIAA contended that this provision could not be used to deny answers to the Commission. The Commission said that under clause 19 (9) of the CIAA Act, no person holding public post could avail exemption from answering on a case that was being investigated by the CIAA, adding that even government officials take such oaths. "If this contention holds true, then what is the efficacy of the Commission?" asked the CIAA.
The Commission also took exception to the PM reply that the Cabinet could not be seen to be involved with RNAC?s decisions as it was an autonomous body. The anti-corruption body emphasized that the government was clearly involved in the activities of the RNAC because of its approval of the Civil Aviation Ministry decision to bring the Lauda jet and its directives to the ministry to follow the CIAA directives on leasing an aircraft. The Commission?s directives have barred leasing of aircraft outside the tender process. The RNAC had leased the Lauda jet through direct negotiations.
The "dual policy" of the Cabinet vis-?-vis the foreign exchange approval to the two lease deals (the other relating to the China South West Airlines) was also questioned by the CIAA. The Commission remarked that it could not understand the Cabinet?s compulsion to clear the amount only for the Lauda jet. It further said that the Prime Minister provided no clear answers.
The CIAA has also decided to "caution" the PM to take precaution in approving foreign exchange deals "that could facilitate corruption" as seen in the present case. Sources in the CIAA said that the commission would send all of these observations to PM Koirala.
Two of the Commissioners, Basudev Lamichhane (who investigated the case) and Madhav Datt Bhatta, seemed to hold divergent views on the PM?s alleged involvement in the infamous jet lease deal. Speaking about cautioning PM Koirala, Bhatta maintained that PM was not involved in the deal, whereas Lamichhane said, "It was for you to interpret (the caution)." He was replying to a question whether the CIAA?s caution meant that the PM was involved in the deal.
Meanwhile, in an emergency meeting held at his official residence at Baluwatar with his ministers and party leaders, PM Koirala said he would not resign despite the CIAA?s comments on his reply, according to sources close to the PM.
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Court takes statements from two RNAC board members
By Pramod Poudel
KATHMANDU, May 25 - Of the six accused in controversial Lauda Air deal presented at the Patan Appellate Court, only the RNAC?s board members Tirtha Lal Shrestha and Siddha Raj Joshi could furnish their statements before the division bench of Judges Buddhikant Mainali and Bhoop Dhoj Adhikari today.
Statements from other accused will be taken on Monday. After making the statements, all of them were taken into custody and lodged at Hanuman Dhoka Police Station. Besides Shrestha and Joshi, the other accused former RNAC chief Hari Bhakta Shrestha, Board member Gauri Nath Sharma, RNAC?s Finance Department?s Upendra Prasad Upadhyaya and its Corporate Department?s Pushkar Wagle were also present at the court to furnish their statements.
The other accused ex-Minister for Culture, Tourism and Civil Aviation Tarani Dutt Chataut and Marketing Director R R Upadhyaya remained absconding. The other charge-sheeted includes two Lauda Air executives Andrea Molineri and Otmar Lenz.
CIAA has asked seven of the accused (excluding the three RNAC officials) to pay a fine of Rs 389,706,731 (net loss incurred by RNAC over the Lauda jet deal) collectively.
Board member Shrestha giving his statement said that the agreement regarding the Lauda jet was not against RNAC?s interest. "The Lauda deal will not cause RNAC to suffer loss nor will it prefatory body else except the corporation," said Shrestha. "The deal was not clinched with any malafide intentions," he added.
Speaking about the current loss suffered by RNAC, Shrestha said that profit or loss could be estimated only after 18 months (time for which Lauda Air was leased).
Giving further statement to the court he said that the board endorsed the agreement as concerned authorities from all the 13 RNAC departments had pointed out that the lease deal would earn a monthly profit of around Rs 30 million.
"I have been detained unnecessarily," said Shrestha.
"Even Rameshwor Prasad Khanal as RNAC?s board member, was involved in the course of the Lauda Air negotiation and on what ground is he not charge-sheeted?" queried Shrestha.
Joshi speaking about the negotiation of the jet said that it was the legal advisor who had opined that the jet could be leased through direct negotiations. "We were also provided with the legal opinions and that the Lauda Air agreement was above board."
Joshi said that CIAA?s investigation was being carried out on the basis of an appeal filed by an unidentified person. He condemned the CIAA?s move to charge-sheet them by yielding to the Opposition parties? street protest against the Lauda Air deal.
"No normal Nepali can afford post a bail amounting to Rs 50 million. CIAA?s verdict can in no way be justified," he said. "CIAA?s eyes don?t fall upon those people who become billionaire overnight but on us who work from nine to five keeping the government machinery working," he added.
" RNAC is an autonomous body but the Public Accounts Committee and CIAA summoning the members of RNAC management time and again is an act that cannot be justified," Joshi said. This show that concerned bodies tend favours the political parties? wills and weakening governments? machinery, Joshi added. "Who is going to decide on such subjects," he further added.
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