Blunder in purchase of Airbus Aircraft: Federal Parliament committee

The International Relations Committee of Federal parliament has stated that there has been error in procurement procedure of the Airbus aircraft by National Flag carrier Nepal Airlines Corporation (NAC).

The international relation Committee has stated that there has been error in procurement of all 4 airbus aircraft by NAC. NAC purchased 2 narrow-bodies Airbus A320 aircraft on 2071 and 2 wide-body Airbus A330 aircraft.

The committee has submitted a report which stated that NAC paid around one and half billion more for procurement of narrow-body aircraft. NAC purchased two Airbus A320-200 aircraft by borrowing NRs. 10 billion from the Employees Provident Fund.

Similarly, the report also stated that the wide-body was procured without any completion so as to buy from only one company. The report also stated that the aircraft was purchased against the proposed proposal made before the parliament without mentioning any reasons.

The committee was formed at the end of 2018 to probe any irregularities in procurement process of the NAC aircraft procurement.

Previously, Public Accounting Committee (PAC) of the Parliament directed the Public Procurement Monitoring Office (PPMO) of the Nepal Airlines Corporation (NAC) to report the procurement process.

Public Accounting Committee (PAC) then reported that purchase of the wide-body had irregularities and stated that the airlines purchased the 2 wide-body without any tender calls.

The report mentioned that corporation made deal of purchasing aircraft simply on the basis of a Request for Proposals (RFP) whereas under the Public Procurement Act, the company must make tender calls for buying of goods and services.

With the report, the sub-committee has stated that the reports are being studied and are focused on procurement process of NAC’s aircraft along with Chinese aircraft.


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