PPMO reports to PAC: states NAC purchase of wide body illegal without tender calls

Nepal Airlines Corporation is still in the process to clear all misunderstandings and frauds if any, in the process of procuring two wide body Airbus A330 series aircraft.

Previously, Public Accounting Committee (PAC) of the Parliament directed the Public Procurement Monitoring Office (PPMO) of the Nepal Airlines Corporation (NAC) to report with the opinion by giving ultimatum of 7 days.

According to that, Procurement official submitted the report on Monday (December 11). PPMO has discovered that NAC has broken procurement law while purchasing two Airbus A330 as the corporation bought without tender calls.

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

Similarly, PPMO found another error regarding the pact done between NAC and Airbus Company. NAC has calculated the estimated price of Airbus which was mentioned eight years ago.

According to source of PAC, NAC calculated the price based on annual cost increments since eight years ago when NAC had invited tender bids for narrow-body planes. PAC has suspected the fraud of Rs 6 billion in the wide-body aircraft purchase.

According to the report, NAC board decided to buy brand new aircraft, later NAC management twisted the conditions and settle to purchase the aircraft which has flown for 1000 flight hours.

As per the my Republica source, The report shows that the estimated cost was inflated and NAC accepted the sale proposal made by the American supplier AAR Corp as it was.

PPMO states that there was no competition as no qualifications and technical criteria was to evaluate among RFP participants. Likewise, the report includes that the corporation neglect to collect the current prices of the aircraft from the manufacturers.

PAC has again called a meeting on December 12, Wednesday (Tomorrow). PAC will probably confirm its assumption of corruption. PAC may also form a subcommittee to study and make another report.

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