The investigation involves the much talked about lease by Royal Nepal Airlines Corporation (RNAC), the national flag carrier, of a Boeing 767 aircraft from Lauda Air of Austria. RNAC took the Boeing 767 jet aircraft on lease for 18 months despite directives issued by the Public Accounts Committee (PAC) not to implement the deal until a parliamentary committee completed its investigation in the matter.

A sub-committee of the PAC found the deal irregular, ill-intentioned and against the interests of the state-owned airlines in November 2000. RNAC employees also protested the deal. Despite this, the aircraft joined RNAC's fleet on December 1 to service its international sector.

The deal was fixed at $3,350 for each flight hour but, according to a highly placed RNAC official, the actual cost per flight hour is about $5,000.

The RNAC official said: "There was no need for the deal as RNAC has not been able to fly its two B-757 jets for the minimum guaranteed 300 flight hours a month." "It was all because of political pressure as there are millions of dollars involved and the entire deal was done at RNAC's cost," the official said. "The aircraft is already 13 years old and RNAC will not be able to pay for the ailing aircraft's maintenance. On the other hand, to cover the flight hours for Lauda Air's leased aircraft, RNAC's aircraft will have to stay idle," he said.

The government has suspended Haribhakta Shrestha, RNAC chairman, on the suggestion of the Commission for the Investigation of Abuse of Authority (CIAA), which is investigating several aviation-related deals he was involved in. But PAC chairman Subash Nemwang alleged: "The cabinet also committed irregularities as it ignored the request and directives of the committee for not going ahead with the deal". Nemwang said in Kathmandu that "the irregularity is not limited to RNAC alone and the deal was not reached only because of Haribhakta Shrestha; the cabinet is also responsible and, as the head of the Cabinet, Koirala must take responsibility."

"Koirala had a chance to put a brake on the deal when the PAC summoned him, but he kept quiet, which means he also has direct or indirect involvement in it," Nemwang said.

As the deal was signed against PAC directives, the committee summoned tourism and civil aviation minister Tarani Chataut for explanation. But when he could not justify the deal to the PAC, Prime Minister Koirala was summoned. The Prime Minister assured the PAC on December 20, 2000, that the government would take stern action against the guilty in the Lauda Air deal. All political parties, including a large group of parliamentarians representing the Nepali Congress, have opposed the decision to lease the plane against the instruction of the parliamentary committee and have agreed to launch a joint movement against it.

A CIAA official said there was already intense political pressure not to begin investigations, ahead of the national convention of the ruling party that is due in a week. "But CIAA has already sent notice to the tourism and civil aviation minister to present himself before the commission to explain," he said.

(India Abroad News Service)