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Kathmandu Saturday May 26, 2001 Jestha 13, 2058.
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Two
including Chataut abscond
CIAA prosecutes 10, spares PM
By Damakant Jayshi
KATHMANDU, May 25 - The Commission for the
Investigation of Abuse of Authority (CIAA) today filed cases in the Patan Appellate Court
against 10 people, including a former minister and two Lauda Air executives, charging them
with corruption in the controversial Lauda Air jet lease deal signed by Royal Nepal
Airlines Corporation (RNAC) last year.
Six of the accused, who were produced in the
court today, were taken into custody by police and are now lodged at the Hanumandhoka
Police Station, the district police headquarters. The hearings are to continue on Monday.
Those taken into custody are former RNAC Executive Chairman Hari Bhakta Shrestha and the
Board members Tirthalal Shrestha, Gaurinath Sharma, Siddharaj Joshi and RNAC executives U
P Upadhyaya (Director of Finance) and Pushkar Wagle (Corporate Department).
Ex-Minister for Civil Aviation Tarani Dutt
Chataut, who was in government when the deal was signed, was also charged in the case
today. But Chataut failed to show up at the CIAA as ordered him this morning, prompting
the commissioners to brand him "absconding." The CIAA has ordered the police to
arrest Chataut. Also absconding is R R Upadhyaya, the then director of marketing of RNAC.
Chataut could not be reached despite several attempts.
Two Lauda Air executives Andrea Molineri and
Omar Lenz, respectively of Lauda Air Italy and Austria, have also been charged in the
cases.
In court papers filed today, the CIAA
contends that the decision to lease the Lauda Air jet was arrived at with malafide
intentions. The lease has led to a direct loss to the national carrier of over Rs 389
million, the CIAA contends. Except the three RNAC executives - the two Upadhyayas and
Wagle - other seven would have to compensate the loss, said the Commission.
Meanwhile, in another far-reaching move, the
CIAA strongly rebuked Prime Minister Girija Prasad Koirala for the Cabinet’s role in
the deal. However, the constitutional anti-corruption body spared the Prime Minister the
embarrassment of having to face a court case.
At a press briefing later in the day, CIAA
commissioners said they had forwarded a letter to the Prime Minister rebuking his answers
to the "closed questions" submitted earlier by the CIAA.
In a strongly-worded statement made available
to the reporters, the anti-corruption body said it could not agree with the PM’s
reply that stressed on the sanctity and secrecy of the Cabinet decisions. It also refused
to agree with the PM’s reply that the Cabinet’s approval of the foreign exchange
amounting to 2,010,000 US dollars was a "policy decision", saying it was a
decision taken for a business dealing.
The CIAA added that the Cabinet decision
neither seemed pre-planned nor applicable to any other deal and so the Commission could
initiate action against the Cabinet approval.
Regarding the PM’s reply on oath of
secrecy was concerned, the CIAA contended that this provision could not be used to deny
answers to the Commission. The Commission said that under clause 19 (9) of the CIAA Act,
no person holding public post could avail exemption from answering on a case that was
being investigated by the CIAA, adding that even government officials take such oaths.
"If this contention holds true, then what is the efficacy of the Commission?"
asked the CIAA.
The Commission also took exception to the PM
reply that the Cabinet could not be seen to be involved with RNAC’s decisions as it
was an autonomous body. The anti-corruption body emphasized that the government was
clearly involved in the activities of the RNAC because of its approval of the Civil
Aviation Ministry decision to bring the Lauda jet and its directives to the ministry to
follow the CIAA directives on leasing an aircraft. The Commission’s directives have
barred leasing of aircraft outside the tender process. The RNAC had leased the Lauda jet
through direct negotiations.
The "dual policy" of the Cabinet
vis-à-vis the foreign exchange approval to the two lease deals (the other relating to the
China South West Airlines) was also questioned by the CIAA. The Commission remarked that
it could not understand the Cabinet’s compulsion to clear the amount only for the
Lauda jet. It further said that the Prime Minister provided no clear answers.
The CIAA has also decided to
"caution" the PM to take precaution in approving foreign exchange deals
"that could facilitate corruption" as seen in the present case. Sources in the
CIAA said that the commission would send all of these observations to PM Koirala.
Two of the Commissioners, Basudev Lamichhane
(who investigated the case) and Madhav Datt Bhatta, seemed to hold divergent views on the
PM’s alleged involvement in the infamous jet lease deal. Speaking about cautioning PM
Koirala, Bhatta maintained that PM was not involved in the deal, whereas Lamichhane said,
"It was for you to interpret (the caution)." He was replying to a question
whether the CIAA’s caution meant that the PM was involved in the deal.
Meanwhile, in an emergency meeting held at
his official residence at Baluwatar with his ministers and party leaders, PM Koirala said
he would not resign despite the CIAA’s comments on his reply, according to sources
close to the PM.
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