New Corruption Allegations Spark Concerns Over China's Role in Nepal Projects
Synopsis
Key Takeaways
Kathmandu/New Delhi, March 23 (NationPress) With the imminent transition to a new government in Nepal, emerging issues are spotlighting the previous administration's economic and ideological ties with China.
Former Prime Minister K.P. Sharma Oli, despite facing intense political opposition domestically and diplomatic pushback internationally over security matters, proceeded to incorporate various ambitious projects under Beijing's Belt and Road Initiative (BRI), which has previously ensnared multiple nations in debt.
This past Sunday, Nepal's Commission for the Investigation of Abuse of Authority (CIAA) initiated a corruption case against 21 individuals, including two Chinese nationals, alleging the misappropriation of Nepali rupees 461.5 million (approximately Indian rupees 288.4 million) during the construction of Pokhara International Airport, according to a report from the Kathmandu Post.
The anti-corruption agency highlighted allegations of embezzlement linked to contract manipulation and unauthorized consultancy payments, indicating that the project was financed by China.
Furthermore, the CIAA accused China CAMC Engineering Co Limited, the contractor, of acting with malice from the inception to manipulate and secure the project, as reported by the newspaper.
The CIAA, which is a constitutional body tasked with combating corruption, has implicated CAMC Chairman Wang Bo and project manager Yang Zhigang, seeking the recovery of Nepali Rupees 461.58 million from them.
Notably, Nepal's aviation sector is grappling with a plethora of challenges, including safety concerns, and has been blacklisted by the European Union since 2013.
Previously, the Oli government had appointed a retired Supreme Court judge to lead a committee aimed at identifying deficiencies at various airports developed to enhance tourism, including the Pokhara airport, and to propose remedies with expert assistance.
In an interview with IANS earlier this month, retired judge and current interim government Minister Anil Sinha confirmed the prior investigation.
He stated, "Safety issues have led to numerous crashes, resulting in significant loss of life. I was asked to chair a committee comprising several experts from diverse fields associated with civil aviation."
Oli had subsequently instructed the committee to broaden its scope to explore the underperformance of Pokhara and Bhairahawa airports and the reasons behind Nepal Airlines' lack of success, as shared by Sinha.
However, Sinha noted that the investigation faced logistical and funding challenges, to the extent that committee members were unable to visit the airports in question.
In a separate development, a multi-billion-rupee industrial park, also part of the BRI in Jhapa district of eastern Nepal, gained attention prior to the March 5 general election when the Rastriya Swatantra Party (RSP) removed it from their electoral manifesto.
Concerns have emerged among segments of the Nepalese population regarding the financial repercussions of BRI projects, especially in light of Sri Lanka and Pakistan experiencing economic crises due to similar Chinese investments.
New Delhi has expressed objections to the project located near the Nepal-India border, particularly due to its proximity to the sensitive Siliguri Corridor or the "chicken's neck".
The RSP's decision to exclude the Jhapa project was perceived as a significant departure from former PM Oli's pro-China stance.
The RSP subsequently achieved significant victories in the recent Parliamentary elections, and Balen Shah, who won against Oli in the latter's stronghold of Jhapa-5, is anticipated to become Nepal's next Prime Minister.
This Pokhara airport issue marks the third case linked to the project.
In December 2025, the CIAA filed a case against 55 individuals (including Ministers and Secretaries) seeking the recovery of Nepali Rupees 8.36 billion.
Another case accused project chief Binesh Munankarmi of acquiring disproportionate assets.
This scandal has reignited widespread criticism regarding China-funded projects that are allegedly fraught with corruption and mismanagement, heightening concerns about Beijing's debt trap diplomacy in Nepal.