SANGAM

CIAA orders CAAN to halt payment

SANGAM PRASAIN
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KATHMANDU, JUN 11 - The Commission for Investigation of Abuse of Authority (CIAA) has issued an order to the Civil Aviation Authority of Nepal (CAAN) to halt the release of a sum of Rs. 60 million as approved by its board to Sambu Construction Co. of Korea.

A contract to expand the international terminal building, operation airlines complex and car park at Tribhuvan International Airport (TIA) for Rs. 1.20 billion had been awarded to Sambu Construction on July 9, 1999, the CIAA said.

Citing delays in construction due to technical problems that emerged while levelling

the ground inside TIA and bandas and other hassles, the company had claimed Rs. 160 million more as compensation from CAAN.

The CAAN board had approved a sum of Rs. 60 million to be paid as compensation two weeks ago. It decided to release the money by increasing the variation order under the TIA improvement project package 1 as it said Sambu Construction had refused to accept compensation of less than Rs. 60 million.

The board consisting of coordinator Ratish Chandra Lal Suman, (CAAN deputy director general), member Phanindra Gautam (under secretary at the Ministry of Law and Justice), officiating member Alok Chandra Shrestha (joint secretary at the Ministry of Tourism and Civil Aviation), member Basudev Lal Shrestha (director, finance department, CAAN) and member Prem Raj Lohani (director, TIA improvement project) endorsed the decision to release Rs. 60 million.

Phanindra Gautam had registered a note of dissent saying that CAAN would end up paying Rs. 12.8 million more if it approved the release of Rs. 60 million. “I was not satisfied with the board’s decision to release the said amount,” Gautam said.

“The CIAA has seized documents related to the TIA improvement project and payment procedures for further investigation,” said CIAA spokesperson Ishwori Poudel.

The government had released an additional Rs. 6.7 million to complete the ground levelling and earth removing work. However, the contractor had submitted a bill for Rs. 54.7 million in 2001 citing technical reasons and delays. Technicians have said that Rs. 7 million would have been sufficient for the work.