No real surprises here...a few extracts from the article. Full article posted below.
A government inquiry into a new $216 million international airport in Nepal’s second-biggest city found that “irregularities and corruption” by officials and lawmakers had allowed a Chinese state-owned contractor to ignore its obligations and charge for work it never completed.
In a 36-page report released Thursday, a parliamentary committee’s investigation into the airport in Pokhara found that China CAMC Engineering, the construction arm of a state-owned conglomerate, Sinomach, had failed to pay taxes, had not finished the project to specification and had used poor-quality construction, all because of corruption and a lack of oversight.
The parliamentary committee’s report found that CAMC had failed to complete the work of digging, refilling and adding gravel to the runway, as well as other key components of the airport, despite a contract requiring it to do so. It also found that the construction firm had received payment for aspects of the project that were never built, including a fuel supply facility and a heating, ventilation and air-conditioning system. In some of those cases, Nepal’s civil aviation authority was forced to pay for items that CAMC failed to deliver as promised.
The report also stated that Nepali authorities had waived $16 million in taxes for CAMC, even though the contract stated that the company was obligated to pay customs duties and value-added tax on equipment imported from China.
The contract called for two runways for takeoff and landing. However, the airport effectively has only one operating runway, because the second runway is closed for safety reasons, the report said.
www.nytimes.com
Friendship and cooperation you say...
A government inquiry into a new $216 million international airport in Nepal’s second-biggest city found that “irregularities and corruption” by officials and lawmakers had allowed a Chinese state-owned contractor to ignore its obligations and charge for work it never completed.
In a 36-page report released Thursday, a parliamentary committee’s investigation into the airport in Pokhara found that China CAMC Engineering, the construction arm of a state-owned conglomerate, Sinomach, had failed to pay taxes, had not finished the project to specification and had used poor-quality construction, all because of corruption and a lack of oversight.
The parliamentary committee’s report found that CAMC had failed to complete the work of digging, refilling and adding gravel to the runway, as well as other key components of the airport, despite a contract requiring it to do so. It also found that the construction firm had received payment for aspects of the project that were never built, including a fuel supply facility and a heating, ventilation and air-conditioning system. In some of those cases, Nepal’s civil aviation authority was forced to pay for items that CAMC failed to deliver as promised.
The report also stated that Nepali authorities had waived $16 million in taxes for CAMC, even though the contract stated that the company was obligated to pay customs duties and value-added tax on equipment imported from China.
The contract called for two runways for takeoff and landing. However, the airport effectively has only one operating runway, because the second runway is closed for safety reasons, the report said.
China-Built Airport in Nepal Was Littered With Corruption, Inquiry Finds
A Nepali investigation blamed lawmakers and officials for looking the other way. The $216 million airport receives only one international flight a week.
Friendship and cooperation you say...
