Nepal’s anti-corruption body has filed a major case against 21 individuals and two companies over alleged irregularities in the construction of Pokhara Regional International Airport.
The Commission for the Investigation of Abuse of Authority has accused former senior officials, including a former tourism secretary and past heads of the Civil Aviation Authority, of misusing public funds during the consultant selection process. The case has been registered at the Special Court, seeking penalties, fines and recovery of losses under anti-corruption laws.
Investigators say the airport project, built with a loan from China Exim Bank under an EPC model, had already allocated around $2.8 million for consultancy services. However, instead of using that provision, officials approved a separate consultancy process through the authority’s own budget, significantly increasing costs.
A contract worth roughly $3.2 million was later signed for the same work, and most of the amount has already been paid. Authorities also found that nearly the entire original consultancy allocation was redirected to other headings through revised pricing arrangements, raising concerns of collusion between officials and contractors.
The anti-corruption body estimates that public funds worth about $3.5 million were misused or lost due to inflated costs and spending that did not follow the agreed contract terms. Part of the loss came from overstated project costs, while the rest was linked to payments made outside contractual provisions.
The investigation also points to violations of public procurement laws, including limiting competition in the bidding process and altering contract conditions.
Officials conclude that the case reflects coordinated wrongdoing involving government staff, consultants and contractors, highlighting deeper concerns about governance and accountability in large infrastructure projects.