KATHMANDU: The Special Court of Nepal has ruled that corruption occurred during the procurement of two wide-body aircraft for Nepal Airlines Corporation (NAC), convicting four individuals, including the then-chairperson.
In a verdict made public late Thursday, the Special Court found former chairperson Shankar Prasad Adhikari, NAC’s General Manager Sugat Ratna Kansakar, and board members Buddhi Sagar Lamichhane and Shishir Kumar Dhungana guilty of corruption. However, the court acquitted former Minister of Tourism Jeevan Bahadur Shahi and other accused Nepali nationals. Foreign nationals involved in the procurement process, including representatives of escrow companies, were also convicted.
The bench comprising Chairperson Tek Narayan Kunwar and members Tej Narayan Singh Rai and Ritendra Thapa determined that corruption amounting to NPR 1.47 billion had occurred. The court upheld the figure presented in the charges filed by the Commission for the Investigation of Abuse of Authority (CIAA), marking a rare case where the court fully accepted the CIAA’s claims.
The convicted individuals have been ordered to pay compensation for the financial loss caused. General Manager Kansakar has been sentenced to two years and six months in prison, with an additional three months due to his high-ranking position. However, considering his age, half of the initial sentence will be waived. Kansakar has also been fined NPR 122.4 million.
Former Tourism Secretary Shankar Adhikari has been sentenced to one year and six months in prison, with an additional three months, making it a total of one year and nine months. Similarly, former joint secretaries Shishir Dhungana and Buddhi Sagar Lamichhane were each sentenced to 18 months in prison. Dhungana retired as a secretary, while Lamichhane was serving at the Ministry of Tourism before being implicated in the case.
The CIAA had filed corruption charges on April 4, 2024, against 32 individuals, including former Tourism Minister Shahi, 24 Nepali nationals, and eight foreign nationals.
The Special Court also convicted British national Deepak Sharma, chairman of the U.S.-based AAR Corporation, which was initially selected to supply the wide-body aircraft to Nepal Airlines. German national Christian Nühlen, connected to three companies involved in the procurement process, and Romanian national Oleg Kalistru were also found guilty.
The group had established a company named Hi Fly X in Ireland, allegedly set up specifically for the aircraft sale. The company purchased two Airbus wide-body aircraft and sold them to Nepal Airlines for NPR 24 billion.
The CIAA accused the individuals and companies of colluding to finalize a procurement deal detrimental to NAC, taking payments in the process and facilitating corruption.
In addition to AAR International and its CEO John Holmes, the Special Court convicted Germany’s German Aviation Capital and its managing director Anna Topa, Portugal’s Hi Fly Transport Aero, and its chairman Paulo Mirpuri. Ireland-based Hi Fly X and its directors Gerald Thornton and Christian Nühlen were also convicted.
The Special Court’s decision underscores the widespread corruption tied to the procurement of two wide-body aircraft. The case has drawn significant public and media attention since the CIAA filed charges on April 4, 2024, accusing numerous individuals and companies of illicit activities.