House to probe Chinese planes

KEDAR DAHAL

KATHMANDU, Aug 1

The International Relation and Human Rights Committee of the parliament will probe about the Chinese planes procured by the Nepal Airlines Corporation (NAC) after receiving complaints demanding investigation against the controversial procurement ‘influenced by commission’.

Chairman of the committee lawmaker Prabhu Sah said there is need for investigation as diplomatic relation was cited while bringing Chinese planes. “A meeting has been called for investigation on Sunday as there have been efforts to serve vested interest through diplomatic matter even though the NAC does not fall in the committee’s purview,” he added.

Many complaints have been received by the committee that raise different questions about the two planes received in grant from China. Sah said the committee has taken it seriously and investigation will be done with priority. The committee has called NAC officials and the Tourism Ministry for discussion. The ministry confirmed that the committee has showed interest about the state of Chinese planes, commission, and problems in the planes.

The complaints claim that political leaders and the then ministry leadership brought the planes influenced by fat commission, took the decision to bring the planes without any technical tests, and evaded the problems faced by the planes. The complainants have even furnished documents to support their accusations including that the top leadership of NAC and ministry have been receiving commission even from insurance premium.

The NAC, for its part, has been claiming that insurance premium for the Chinese planes is expensive, and the Chinese side has not been cooperating on the issue of spare parts, training and pilots. The committee has decided to probe the issue considering involvement of diplomatic relation even though the Public Accounts Committee (PAC) should have investigated it.

The decision makers will be in difficult position if the accusations are established. The formal decision to bring Chinese planes was taken under the then minister Lokendra Bista Magar while the process materialized under Ram Kumar Shrestha. The European Union (EU) had blacklisted Nepali sky citing different reasons immediately after the Chinese planes were brought. The ban has yet to be lifted.

China had given an MA-60 and a Y-12E in grant. China has provided Rs 6.67 billion to the NAC through Export Import (Exim) Bank of China in grant and soft loan to procure the six planes. Rs 2.94 billion out of that is grant for an MA-60 and Y-12E each, and the rest soft loan for the remaining four planes.

There have been accusations that Chinese company AVIC International Holding Corporation has sent planes different from that mentioned in the manual. The manuals for both MA-60 and Y-12E, provided by China on grant, sent after the planes were sent have been found to be different from those sent before the planes were brought. The NAC has been claiming that there have been problems in the planes due to difference in the manuals.

Avic has also reduced insurance premium for Chinese planes by 25 percent following complaints that insurance premium was expensive. The NAC, that spends almost half its income from Chinese planes on insurance, wrote for renewal for a year after getting discount of 25 percent last week.

The MA-60 was brought on April 27, 2014 while 18-seater Y-12E arrived on November 3, 2014. The former had started flights from June 25, 2014 and the latter from December 18 that year.