Commission for Investigation of Abuse of Authority (CIAA) Nepal has ordered five international companies involved with the two widebody A330 procurement of Nepal Airlines Corporation (NAC) to show up with necessary documents. This step has been taken as it had been reported that there might be a possible fraud case during the procurement process.
CIAA has instructed five companies including aircraft seller Hi fly X Ireland through a public notice to present with necessary documents within 7 days.
Other companies required to be present are AAR Corp., German Aviation Capital, Hifly transport, and Norton Rose Fulbright.
CIAA in accordance with the case filed for possible fraud in purchase, has called for the involved companies during the procurement process to carry out the necessary investigation.
The flag carrier had purchased two A330-200 Airbus aircraft from the US-based AAR Corp for $209.6 million, the largest ever aircraft purchase deal in Nepal’s aviation history. NAC took the delivery of first Airbus A330 aircraft – Annapurna on June 28 and the second Airbus A330 aircraft – Makalu on July 27.
After the discussion on the subject of irregularities in the process of buying two Widebody aircraft, Public Accounts Committee (PAC) of the parliament started investigating the procurement process. With the proposed report it is expected that there could be the fraud of a total of 4.35 arba during the procurement process.
