Nepal Airlines Chairman arrested for public procurement breach

The wonderful world of procurement misbehaviour carries on, all over the world, Christmas or no Christmas.  As the Republica website reports from Katmandu today,

The Special Court on Sunday has served notice to executive chairman of Nepal Airlines Corporation (NAC) Sugat Ratna Kansakar and five other senior NAC officials to appear before the court within 15 days.  The court issued the summons after the Commission for the Investigation of Abuse of Authority (CIAA) filed a case on Friday against the six for their alleged involvement in misuse of Rs 57.3* million in Airbus purchase deal.

But it's not what you might expect; no backhanders from the supplier.  No, this is about the Nepalese executives apparently giving a 'down payment' to Airbus without going through proper competitive procurement and governance processes, perhaps to force the Government's hand in allowing them to buy new planes? (Although it is not clear exactly from the reporting just what the reasoning of the accused has been - why did they take this alleged action)?  As Republica says,

"The decision to forward non-refundable commitment money (also known as lock up money) worth Rs 57.3 million to the aircraft manufacturer was taken under Kansakar´s direct orders. Our investigation concludes that Kansakar grossly misused his authority while taking the decision to release and forward non-refundable money to Airbus,” states the charge-sheet filed at the Special Court.

There is talk of reclaiming the money from the individuals personally. Now there's an idea we mighth applaud more widely.  If we could get the cash back from every budget holder who spent money in a non-procurement- approved fashion, that would increase compliance pretty quickly!

And who should we in the UK go after for the cost of the Aircraft Carriers that were ordered when they patently could not be afforded? Answers on a postcard please...

* about 1 million Euros

Share on Procurious

Voices (3)

  1. Christine Morton:

    What, you mean there’ll be more retribution beyond a “Lessons Learned” report?

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.