Govt minister’s company blacklisted for incomplete projects: Kanchharam Construction faces ban amid controversy

KATHMANDU: The government of Nepal has blacklisted Kanchharam Construction, a contracting company owned by Purna Bahadur Tamang, a Member of Parliament (MP) from Ramechhap and the Minister of State for Energy, Water Resources, and Irrigation in KP Sharma Oli’s cabinet. This recent development adds to Tamang’s longstanding controversies, as his company has left multiple projects unfinished, prompting questions about his suitability for public office.

Background of Blacklisting and Government Involvement

This is not the first time Tamang’s company has faced scrutiny. On Magh 19, 2079 BS (February 2, 2023 AD), the Credit Information Bureau added Purna Bahadur Tamang, known as “Kanchharam,” to its blacklist due to unresolved financial issues. Despite this, Tamang was appointed as Minister of State, raising concerns regarding the government’s accountability and transparency in appointments. Now, as the government has again placed Kanchharam Construction on its blacklist, the issue has taken on national significance.

The Public Procurement Monitoring Office, which operates under the Prime Minister’s jurisdiction, has restricted Kanchharam Construction from participating in any public construction projects for the next two and a half years. This measure is seen as a necessary step to ensure accountability within the government contracting system, but it also brings into question how Kanchharam Construction managed to secure major projects while leaving many of them incomplete.

Federally Sanctioned Blacklisting and Provincial Endorsements

The Federal Road Supervision and Monitoring Office in Tumlingtar initially recommended blacklisting Tamang’s company after numerous projects were abandoned mid-construction, affecting various infrastructure goals in the area. This recommendation was later endorsed by the Public Procurement Monitoring Office, reinforcing the government’s stance on holding contractors accountable.

The Infrastructure Development Office in Morang also issued a termination notice to Kanchharam Construction. On Bhadra 23, 2081 BS (September 8, 2024 AD), this office formally announced the termination of all ongoing contracts with Kanchharam Construction, underscoring concerns over incomplete projects in the eastern region.

Unfinished Projects in Morang and Beyond

Kanchharam Construction’s uncompleted projects span several regions and have stalled essential infrastructure developments. In 2075 BS (2018 AD), the company was awarded a contract for the Babiyabirta-Ranjani-Kajiman Chowk-Pharsadangi-Dovan Ghat-Gandhi Ashram-Dobariya Than-Sunbarshi road project, a critical infrastructure initiative in Morang. Additionally, in 2076 BS (2019 AD), the company signed a contract to build a road from the western ring road of Katahari to the agricultural market through Khoria and Maheshpur. Despite these contracts, neither project has reached completion, resulting in growing frustrations among local communities that rely on these roads for transport and economic activities.

This pattern of delays and unfinished work has not been limited to Morang. In Karnali Province, Kanchharam Construction has undertaken several contracts that remain incomplete. This has affected the provincial government’s ability to fulfill infrastructure promises and has highlighted issues in the contracting system that often allow unqualified contractors to handle critical projects without sufficient accountability.

Impact on the Government’s Image and Public Outrage

The repeated controversies surrounding Tamang and Kanchharam Construction have raised questions about the government’s oversight and decision-making processes. Critics argue that Tamang’s appointment as Minister of State, despite his company’s blacklisting, reflects poorly on the Oli-led government’s commitment to transparency. The issue also underscores potential weaknesses in the government’s vetting process for high-ranking officials and contractors.

Political analysts and the general public have expressed disappointment and concern over the government’s decision to award influential positions to individuals with controversial business practices. As Nepal faces challenges in infrastructure development, cases like Kanchharam Construction’s highlight the need for stringent checks and balances to ensure that contractors deliver on their commitments.

Public Procurement Monitoring Office’s Ban: A Step Towards Reform?

The Public Procurement Monitoring Office’s decision to ban Kanchharam Construction from public tenders for two and a half years signals a possible shift in government policy toward enforcing stricter regulations on contractors. By holding companies accountable for abandoning projects, the government hopes to discourage similar behavior in the future and restore public trust in its infrastructure plans.

However, experts argue that these actions, while necessary, may not be enough to bring about long-term change. Some call for broader reforms, including higher penalties for incomplete work, more rigorous evaluations of contractor bids, and an overhaul of the appointment process to prevent individuals with contentious business histories from holding positions of authority.

Public Sentiment and Potential Political Fallout

The issue has fueled public outrage, especially among communities directly impacted by unfinished projects. The ban on Kanchharam Construction has raised questions not only about Tamang’s role as a minister but also about the government’s broader commitment to improving the nation’s infrastructure and accountability in governance.

In light of this scandal, there is growing pressure on the Oli government to take further action to address gaps in the system that allowed Kanchharam Construction to win contracts and receive public funds without completing its obligations. As the government seeks to rebuild trust with its citizens, many wonder if additional oversight measures will be implemented to prevent similar situations in the future.