Barshaman Pun’s ‘Questionable’ Role in Chinese Plane Procurement; Huge Losses for State

From gold smuggling to irregularities in the construction of Pokhara International Airport, Finance Minister Barshman Pun’s involvement has also been suspected in the case of purchasing Chinese planes.

One of the many controversial decisions he made during his tenure as finance minister was the agreement to purchase Chinese planes.

According to an employee who worked at the Ministry of Finance during that time, Pun played a highly active role in the plane procurement process. His statements, photos of discussions with the Chinese side, and other evidence confirm his involvement.

The corporation has made repeated attempts to sell 5 out of the 6 Chinese planes purchased from China, which were unable to fly, but these efforts have not been successful. The annual parking and insurance fees for these planes alone exceed 20 crores. Additionally, another plane involved in an accident remains stranded at Nepalgunj airport.

The debt for the purchase of those Chinese planes is about 4 arba rupees, while the corporation’s data shows that there has been a loss of more than 2 arba during the period of operation. According to the purchase agreement, the first installment was to be paid from Kartik 2077, but the aircraft has been grounded since the same year.

Game of Sinking the National Flag Bearer

In Shrawan 2068, the Nepal Airlines Corporation wrote a letter to the Ministry of Finance proposing the purchase of planes with the assistance of foreign grants. The proposal did not include Chinese planes.

The Prime Minister at the time, Dr. Baburam Bhattarai, announced the ‘Current Action Plan for Economic Development and Prosperity,’ instructing relevant ministries to procure six planes within six months. He also warned of consequences if the procurement process for the planes did not proceed.

Following this, the Council of Ministers decided to acquire four planes from China through a concessional loan and two through subsidies.

In Kartik of the same year, a study committee was formed on this matter.

According to reliable sources, Pun had exerted pressure to generate a positive report for the ship, insisting that he should buy it regardless.

In Mangsir 2068, the then Minister of Tourism, Lokendra Bista, reached a preliminary agreement with the Chinese company Avic International Holding to purchase aircraft.

Finance Minister Pun held a press conference on Poush 7, 2068, announcing that progress had been made in the process of purchasing and selling planes between China and Nepal. The fact that Pun, who was not a minister of the relevant ministry, made this announcement indicates his considerable interest in the matter.

“China has offered to sell 4 planes on concessional terms and provide 2 planes as a subsidy,” he stated during the press conference.

Afterwards, Pun began holding frequent meetings with Chinese businessmen. Epardafas also received a picture of him and the then Tourism Minister Lokendra Bista meeting with the Chinese delegation at that time.

When questioned about this, the former tourism minister Bista stated that he did not recall the event clearly.

Later, on the 17th of Kartik, 2070, a decision was made to purchase six planes from China in a single transaction. On Mangsir 13, a loan agreement was signed with the Chinese government.

The agreement was signed by the then Finance Secretary Shanta Raj Subedi and the Chinese Ambassador to Nepal, Wu Chuntai.

See the agreement:

These aircraft, which were imported from China for domestic flights starting in 2071 BS, have only contributed to financial losses for both Nepal Airlines and the government.

Currently, all six of these aircraft remain grounded, with one of the four Y-12 planes rendered unflyable due to a crash. Despite repeated calls for tenders to operate these aircraft, no applicants have come forward.

We sourced this news from Lokantar.com. All credit for the original content goes to Lokantar and its team.