Kathmandu/New Delhi, March 23 (IANS) Even before a new government officially assumes office in Nepal, certain contentious issues coming to the public domain recently are raising serious questions over the previous government’s economic and ideological connections with China.
Though former Prime Minister K.P. Sharma Oli faced strong political opposition within, and diplomatic resistance outside over security issues, he included several ambitious projects under Beijing’s Belt and Road Initiative (BRI) that has earlier put many other nations in debt trap.
Nepal’s Commission for the Investigation of Abuse of Authority (CIAA), on Sunday, filed a corruption case against 21 individuals, including two Chinese officials, alleging the misappropriation of Nepali rupees 461.5 million (about Indian rupees 288.4 million) during the construction of Pokhara International Airport, according to a Kathmandu Post report.
The graft body has pointed out alleged embezzlement through contract manipulation and consultancy payments outside the agreed terms, the report said, adding that the project was financed by China.
The CIAA has also alleged that China CAMC Engineering Co Limited, as the contractor, acted with malafide intent from the outset to influence and secure the project, the newspaper added.
CIAA is a premier constitutional body established to combat corruption and its pervasive influence in the country.
According to The Kathmandu Post, CAMC Chairman Wang Bo and project manager Yang Zhigang has also been implicated, with the CIAA seeking Nepali Rupees 461.58 million from them.
Incidentally, Nepal’s aviation sector has been facing several problems, including safety issues, and has been on the European Union’s blacklist since 2013.
Earlier, the then Oli government had asked a retired judge of Nepal’s Supreme Court to lead a committee to identify the shortcomings at many airports built to boost tourism, including the one at Pokhara, and suggest remedies with help of experts.
In an interview with IANS in early March, retired judge and a Minister in Nepal’s interim government, Anil Sinha, had confirmed the earlier probe.
“There were safety issues with many crashes, where several lives were lost. I was approached to head a committee that had several experts from different fields associated with civil aviation,” he said.
The then Prime Minister Oli had later asked the committee to expand the scope of work and see why Pokhara and Bhairahawa airports were not functioning as per expectations and also the reason for Nepal Airlines not performing well, Sinha shared.
However, as pointed out by Sinha, the probe remained inclusive with recurrent logistical and funding problems to the extent that members could not even visit the named airports.
In another incident, a multi-billion-rupee industrial park, part of the BRI, in the eastern part of Nepal’s Jhapa district hit the headlines ahead of the March 5 general election when the Rastriya Swatantra Party (RSP) dropped it from their poll manifesto.
There has been concern among sections in Nepal, who expressed caution regarding the financial implications of BRI projects, particularly in light of Sri Lanka and Pakistan falling into financial difficulties with similar Chinese investments.
New Delhi had objected to the project located near the Nepal-India border, particularly being close the sensitive Siliguri Corridor or “chicken’s neck”.
The RSP’s move to drop mention of the Jhapa project was seen as the first major shift from former PM Oli’s “pro-China” stand.
The RSP later swept the recent Parliamentary polls, and Balen Shah — who defeated Oli from the latter’s bastion of Jhapa-5 constituency — is expected to be the next Prime Minister of Nepal.
In the Pokhara airport issue, it is the third case tied to the project.
In December 2025, CIAA had filed a case against 55 people (including Ministers and Secretaries) seeking Nepali Rupees 8.36 billion in recovery.
Another case accused project chief Binesh Munankarmi of amassing disproportionate assets.
The scandal has refuelled broader criticism over China-funded projects allegedly marred by corruption and mismanagement, reinforcing concerns about Beijing’s “debt trap” diplomacy in Nepal.
–IANS
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